Frank is the most stable currency in the world. Everyone who takes a loan in this currency can be sure that they have made the right decision. In 2005, many thought so, and indeed for a short time everything was arranged according to the promises of the banks, and it seemed to Franks that they could not get better.
A promising start, shock and bust
2005 was the perfect moment for the franc. As he diminished, the zloty strengthened. In addition, bank advisors advised new clients to take a loan in the Swiss currency arguing that it would be very beneficial for them. For this, among others, exchange rate tables, which showed that the franc has been cheaper for four years.
There was no reason for concern. The crash that occurred on the New York Stock Exchange on September 15, 2008 had a huge impact on the currency. At that time, one of the largest investment banks Good Finance went bankrupt. The rate of PLN 2.40 per franc soared at the beginning of 2009 to PLN 3.23. It was just the beginning of the frank run of bad luck. Another increase took place on January 15, 2015, when the value of the franc increased to PLN 5.14.
Help is coming
The Chancellery of the President has decided to help people with franc loans. Currently, the act is waiting for the approval of the Polish Financial Supervision Authority. The support consists of three stages:
Spread refund Spread is an additional cost that is not incurred when taking out a loan in PLN. It arises because of the difference between the exchange rates offered by banks and the one calculated by the National Bank of Poland. The solution to recovering costs may be to reduce the credit debt by the amount of the spread, and the other option is to return the money. To recover money, be sure to submit a refund request. In this situation, the debtor can do nothing without him. Even in this situation, the bank is obliged to reduce the debt by the amount of additional cost.
Currency conversion There are two possibilities
The first is the bank’s voluntary agreement with the borrower, and the second – in the event of disagreement – is to make a statement and use the mechanism provided for in the act, which consists in calculating the “fair rate”. When the bank agrees, then the loan can be converted at the calculated rate, which will fluctuate between the current and initial exchange rates. In case of disagreement, only installments will be paid according to calculations.
3. Getting out of debt The loan can of course be repaid under the old rules. There is no need to use the “fair rate” if we assume that the franc is overvalued and its rate will soon fall. The act included a hint on how to get out of debt. It is worth noting here that not everyone can use it. It says that the person who has outgrown the debt can go to the bank, give the house / apartment keys and ask for debt relief.