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Poland: Currency shift causes mortgages to be worth more than the property

By  |  January 20, 2015

With Switzerland ending its currency cap last week, the value of the franc has surged causing a massive increase in monthly payments for millions in Poland. Before 2008 and the global economic crisis, banks in Poland and other countries could offer mortgages to their customers based in Swiss francs. Even though the foreign currency loan are no longer offered, there are still numerous people who are still paying off their loans from pre-2008.

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    The Polish government is asking banks to offer their customers to pay the loans back at the January 14 rate or to pass negative interest rates to help the situation where customers now have loans that exceed the value of the property. The government has said it will step in if banks start requiring additional collateral for such properties./p>

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