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tagoma
Posts: 2299
Joined: February 21st, 2010, 12:58 pm

Re: Polish plumber goes wild

September 22nd, 2022, 11:32 am

from a BBG news report:

Swiss franc appreciates to as much as 5.0069 zloty, pushing Polish currency to record low a day before rate decision by Swiss central bank (...) .The currency is closely watched by about 350k households in Poland who are paying off Swiss franc mortgages.

Can you please explain why these CHF mortgages in Poland?
 
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gatarek
Posts: 196
Joined: July 14th, 2002, 3:00 am

Re: Polish plumber goes wild

September 22nd, 2022, 11:51 am

There were mortgages indexed to CHF in order to lower the interest paid. Some bank managers wanted to outsmart the market.
 
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katastrofa
Posts: 6974
Joined: August 16th, 2007, 5:36 am
Location: Alpha Centauri

Re: Polish plumber goes wild

September 22nd, 2022, 2:23 pm

Mortgages in PLN were much more expensive than those in CHF, CHF had been considered a very stable currency, and PLN grew in strength after the EU accession… I guess the sales people didn’t explain the foreign exchange risk too thoroughly either.

As above, sorry, I didn’t notice Gamal’s answer :-)
 
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gatarek
Posts: 196
Joined: July 14th, 2002, 3:00 am

Re: Polish plumber goes wild

September 22nd, 2022, 3:05 pm

That product wouldn't be legal elsewhere of course but post-communist countries are sometimes specific.