Franc debtors less and less willing to settle with banks

The weakening of the zloty against the Swiss franc and an increase in interest rates, and thus an increase in the WIBOR reference rate, mean that the interest in concluding settlements with banks is falling among those having mortgages denominated in the Swiss franc. After the settlement, the loans will bear interest at the WIBOR rate appropriate for PLN loans. Therefore, an increase in interest rates causes an increase in interest in litigation in lieu of settlements. The unstable situation in the financial market is an additional incentive for borrowers denominated in Swiss francs, which is reflected in the number of court cases.

"In recent weeks, the situation of francs debtors has changed very dynamically and this is due to instability in the Polish financial market, especially the weakening of the zloty against other currencies. The average debtor, who had to repay CHF 100,000 a month ago, owed around PLN 440,000. Today it is about PLN 500,000," Andrzej Zarzecki, member of the management board of the Prosperitas Law Firm, said.

Basically, since the outbreak of the pandemic in Europe, the Swiss franc has remained above the level of PLN 4, and in recent weeks it has recorded large fluctuations, mainly caused by the war in Ukraine and geopolitical instability. During almost every crisis, the Swiss currency is perceived by investors as a safe haven, which increases its value against the zloty. Shortly after the outbreak of the war, you had to pay almost 5 zlotys for the franc.

(Newseria)