Historic decision for Switzerland

Court EU ruled in favor of a Pole demanding damages from the banks of his country. Now a similar path is open to thousands of borrowers in Greece who have borrowed in Swiss francs and have been defenseless for years.

The EU Court of Justice made a historic decision, acquitting a Polish Swiss franc borrower who filed a lawsuit against a bank and seeks damages from Polish banks.

The court’s decision may also serve as a “guide to action” for similar loans taken in Greece. Recall that in our country, almost 200,000 borrowers who had the misfortune of getting a loan tied to the Swiss franc were left unprotected and have since been trapped, forced to pay double and triple the final loan amount. Indeed, between 2006 and 2008, about 70,000 borrowers took out mortgages with a Swiss franc clause, totaling €7 billion.

In 2008, a consumer and his wife entered into a mortgage loan agreement with mBank, the EU court said in a statement. The loan was pegged to the Swiss franc and monthly payments were made in Polish zloty. abuse, and the contract is invalid as a whole.In fact, the borrower is seeking payment of a sum of money corresponding to half of the profits received by the Polish bank.

The Court of Justice of the European Union has ruled that banks are not entitled to charge such large increases in payments on loans they have entered into with their customers after the change in the exchange rate, and prohibits financial institutions from imposing such requirements on consumers.

During the period 2006-2008, when most borrowers took out loans, the exchange rate between the two currencies was 1.6, that is, 1 euro bought 1.6 Swiss francs. However, in 2009, this rate began to decline until 2011, when the Swiss Central Bank fixed it at 1.20. But since the beginning of 2015, the exchange rate has been unlocked again, and now it is 1 to 1. The more the euro depreciated against the Swiss franc, the more euros the borrower needed each month to buy the Swiss francs of each monthly installment.

For example, a loan of 150,000 Swiss francs in 2007 was equivalent to 93,750 euros at an exchange rate of 1.6 between the two currencies. The same loan today corresponds to 150,000 euros, since the exchange rate between the two currencies is 1 to 1.

PS In fact, this figure rather indicates inflation of the euro, as a currency, towards a more stable Swiss bank. But the European Central Bank prefers not to talk about this…

PPS Small nuance. Switzerland is not a member of the European Union, which means that the decisions of the European Court of Justice are not binding on this country.

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