Wednesday 19 June 2013

Poland ends forex mortgages | beyondbrics

"Poles seeking to buy a property will soon lose the option of taking out a mortgage in a foreign currency, a widespread practice before the financial crisis.

The Polish Financial Supervision Authority (KNF) has issued Recommendation “S” on good practice for mortgage banking, effectively killing any possibility of any return to forex lending by limiting such loans to people who actually get paid in Swiss francs or euros.

Most Poles considered taking out a mortgage in Swiss francs or euros beneficial until 2009 because of the lower interest rates. Between 2006 and 2011, about 60 per cent of all new mortgages were denominated in a foreign currency, mostly Swiss francs."

'via Blog this'

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