The Impact of Swiss Franc Loans on Polish Households

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CEIC Macro Watch Global #41 - February 27, 2015 At the end of 2014 Polish housing loans denominated in Swiss Francs totalled 132.7 billion zloty. The amount at the end of January is estimated to have risen to about 150 billion zloty owing to the 12.5% depreciation of the relevant exchange rate since the Swiss National Bank abandoned its franc currency cap on 15th January, 2015. The anticipated increase in the debt service burden is likely to put extra pressure on Polish households earning their income in the local currency, and may also pose risks to lenders’ balance sheets should the delinquency rates rise substantially. Swiss Franc-denominated loans have decreased considerably since 2011 when they reached PLN 167.7 billion and accounted for more than 50% of all housing loans in Poland. In 2014, these mortgages amounted to 7.8% of annual gross domestic product, a considerably smaller share, compared to the 10.7% recorded in 2011. As a percentage of the stock of financial assets owned by Polish households (excluding insurance and pensions schemes), these loans have decreased from 19.1% in the third quarter of 2011 to 11.3% in the third quarter of 2014. By Stoyan Kiryazov in Bulgaria - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

2nd March 2015 The Impact of Swiss Franc Loans on Polish Households

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