Poland eases pressure on Swiss franc mortgage holders
PR dla Zagranicy
As the Swiss franc reached new records against the zloty, Tuesday, President Bronislaw Komorowski signed the so-called anti-spread law, which creates a market mechanism forcing the banks to lower their profit margin on the purchase and sale of foreign currencies.
Yesterday, the Swiss franc was trading at over 4 zloty, as investors continue to seek safe havens amid concern about the US economic recovery.
In this way, mortgage holders who contracted loans in a foreign currency will no longer have to buy that currency for the repayment of their debt from the lending bank, but can buy it at the market at a more favorable rate.
A majority of mortgages during Poland's property boom years a few years ago were taken out in Swiss franc – often at a price of around 2 zloty.
President Komorowski said that the Polish economy is functioning fine right now but it feels the effects of another wave of the financial crisis. One of these is the unprecedented appreciation of the Swiss franc.
“That is why I highly appreciate the initiative, which led to the adoption of the anti-spread bill by the parliament, which may lessen – at least partly – the painful impact of the crisis for some borrowers, who drew their credits in Swiss francs,” President Komorowski said. (kk/pg)