A pre-typed non negotiated term in a loan agreement forming part of the Bank’s general lending terms and conditions has been held as “abusive” (and consequently null and void under Greek law)

as being vague and lacking precisions and transparency. The case involved a loan initially denominated in Euros and subsequently converted into Swiss Francs. The term provided that in case of termination of the loan, the Bank had the option of converting the total of the loan then outstanding into Euros on the basis of the exchange rate between Swiss Franc and Euro prevailing at the time of repayment. The particular Bank had urged a considerable number of lenders to convert their loans to Swiss Francs, advancing the stable exchange ratio between the Euro and the Swiss Franc and the advantage of the lower Swiss Franc interest rate which it reassured its clients would continue in the future, without warning them of the risks in the event of devaluation of the Euro. The Bank’s clients/borrowers lacked the knowledge and expertise to evaluate the risk involved (Athens First Instance Court, provisional measures division, 874/2016).