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ZRVP Wins in the CJEU the Trial for Application of the Principle of Monetary Nominalism in Foreign Currency Credit Agreements

Publication: ZRVP

By the Judgment ruled on July 09, 2020 in Case C‑81/19 concerning the preliminary referral of Cluj Court of Appeal, CJEU ascertains that a contractual term, be it even not negotiated, which restates a suppletive rule of the domestic law, falls outside the scope of application of Council Directive 93/13/EEC on unfair terms in consumer contracts.

 

The Court of Justice of the European Union (CJEU) has confirmed by a Judgment long-awaited by the Romanian courts the position expressed by the attorneys at law of Zamfirescu Racoți Vasile & Partners (ZRVP) in the name of our client Banca Transilvania concerning the applicability of the principle of nominalism in credit agreements, the position of the ZRVP attorneys at law being adopted by the European court versus the conclusions of the general counsel, respectively the points of view expressed by the European Commission and the Government of Romania.

The judgment ruled by the CJEU is important for the resolution of the disputes between debtors and banks, in the sense that a debtor has the obligation to reimburse the loan in the agreed foreign currency and irrespective of the fluctuations of such currency.

CJEU answers to the question addressed by the referral court as follows: Article 1(2) of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts must be interpreted as meaning that a contractual term which has not been individually negotiated but which reflects a rule that, under national law, applies between contracting parties provided that no other arrangements have been established in that respect falls outside the scope of that directive.

ZRVP’s team who has represented our client successfully has been formed of Stan Tirnoveanu (senior partner), Laura Retegan (managing associate) and Alexandru Iorgulescu (managing associate). ZRVP’s banking litigation practice is formed of more than 12 attorneys at law and handles a portfolio of over 15 credit institutions, this being one of the most appreciated specialized departments in Romania.

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BUSINESS CONTINUITY AT ZRVP

The COVID-19 crisis is fast-moving and hard to predict. At ZRVP, our highest priority is the health and wellbeing of our people, our clients and our communities.

Our response measures are aligned with the recommendations and decisions of the Romanian authorities and ensure the safety of our people and visitors as well as the continued provision of key client services and operations.

We would like to assure you that ZRVP will continue to operate seamlessly during the next period, both remotely and at our offices. We will provide continuous legal service to all our clients and assist you in the navigation of the wide range of legal and economic impacts of COVID-19 that are leading to uncertainty and volatility across all sectors. We are closely monitoring the situation as it evolves and will provide up-to-date information related to the wide range of issues arising during this challenging time.

In the meantime, if you would like to contact any of our team members, please use the usual contact details.

 

Kind regards,
Your ZRVP team