New rules governing loans in foreign currencies

Now one's credit ability will be calculated only in złotys, and a debtor must be able to pay back 20% more than they borrow. These restrictions are aimed at securing clients against exchange rates fluctuations. Also according to the new rules, a bank has to first offer a loan in złoty. Should a client refuse, they have to sign a statement that they acknowledge the possibility of exchange rate risk. A bank advisor is also obliged to present charts illustrating possible influence of interest and exchange rate changes on installment payments. A loan agreement must include information about the total cost of a loan as well a real interest rate together with all bank fees, commissions and interest contribution to the capital installment. (Puls Biznesu, p.10) J.L.