Financial market fears Swiss franc judgment

The judgment of the Court of Justice of the European Union on franc loans is to be announced on October 3. Banks are afraid of potential costs, but the judgment may also affect the rate of GDP growth, Rzeczpospolita daily wrote. When the date of its announcement became known, the market reacted by the sell-off of the zloty and shares on the Warsaw Stock Exchange, mainly of banks. According to ING Bank Śląski economists, not only the banks themselves, which would suffer losses amounting to billions of zlotys, but also Polish treasury bonds and the zloty would suffer as a result of court rulings favorable to banks’ clients. Some banks would suspend the sale of loans for several quarters, the daily wrote.

(Business Insider)