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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
POLAND
- On April 13, the Polish Supreme Count was expected to provide guidance on the FX-denominated mortgages case, which has been an issue for the banking system since GFC.
- After taking loans in Swiss franc more than ten years ago to take advantage of the low Swiss interest rates, the rise CHF relative to PLN (chart below) significantly increased the banks' outstanding volume of assets denominated in Zloty.
- Due to a number of controversial clauses in the mortgage contracts, a significant amount of customers rushed to local countries, suing their banks over the sharp increasing costs of mortgage servicing.
- In many court cases, the ruling was to convert the mortgage back into PLN at the original rate, at a loss to the creditor. As ING recently reported, the rulings of Polish court still differ on:
- Whether banks may charge their clients for the use of capital over the course of the now-invalidated credit;
- Whether after conversion into PLN the 'new' credit should be charged with Wibor rate or CHF Libor.
Source: BLoomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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