For those who repay their loans installment in Swiss francs that means higher installment explains Adam Czerniak, chief economist at Insight policy analysis center. – Depending on the size of the loan that remains to be paid and the time that you have to pay it back, the increase in loan installments will be from a few to several percent – explains the expert.
And it will be painful for the more than 500,000 people have taken out loans in that currency.
Lower interest to compensate for the increase, but …
At the same time the Swiss central bank cut interest rates by 50 basis points to -0 , 75 percent. It may be slightly mitigate the increase in installment loans, but not all, says the House Shortcuts Notus credit. – Some borrowers rescues still declining interest rates. After the decision of the bank in Switzerland LIBOR, which determines the value of the interest rate is negative. Some, unfortunately, have designed an agreement that the interest on the loan, or LIBOR plus a margin may not be less than the margin loan – says a guest.
And then lower interest rates will not save against an increase in the value of the installments.
It is difficult to predict the franc
Analysts agree that it is difficult now to predict at what level will remain Swiss franc. For now drop below 4 zł can be considered unrealistic Bank economist Piotr Bujak Polish. – It is difficult at this point to speculate. But of course 3.5 zł per franc we rather dream – provides Bujak.
The sudden increase franc, if it continues, could also mean problems for banks. – The risk that at a much higher rate of the franc, if this growth will be sustained, worsen the quality of the portfolio of financial institutions. Many borrowers will have problems with repayment of loans and will increase the cost of risk of the entire portfolio – warns Piotr Bujak, head of economic analysis in PKO BP.
You need to stay calm
Experts advise frankowiczom to remain calm. And those who can not afford the higher payments can apply for vacation credit, adds Shortcuts. You can reduce each installment by extending the repayment period, the suspension of the repayment of the loan for a few months. If someone repays the loan in installments decreasing it is possible to change the system of repayment in installments equal. There are, unfortunately, actions that will reduce payments by up to a few percent. The increase in the Swiss franc exchange rate is so high that in every situation we have to reckon with the fact that the payments will be higher – says a guest.
The Polish National Bank ensures that the appreciation of the Swiss franc bank does not threaten the financial system.
Analyst: Frankowicz should communicate with the banks on higher repayment installments
TVN24 Business and World / x-news
Carolina Cerebrate, abo
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