Sunday, January 18, 2015

The dark side of the franc: what to do borrower? – GazetaPrawna.pl

The dark side of the franc: what to do borrower? – GazetaPrawna.pl

The course of the Swiss franc in a single day increased from 3.54 to over 4.30 zł zł. As a result, the loan installment in this currency will increase by more than 20 percent. It is so gentle and dimension passed by the Swiss National Bank to release the price against the euro. In “Black Thursday” price exceeded the Swiss franc as 5 dollars. Fortunately stabilization came fairly quickly, but financial experts are certain: there will be further reductions, at most, a slight correction.

The market can be volatile yet to January 22, or until they know the results of the next meeting of the European Bank for Central. On the same day enters into force on a negative decision on interest rates in Switzerland. “The next weeks and probably months, perhaps even quarters, will no longer be dominated by limited changes franc trading at new levels of balance. This scenario is for the CHF / PLN long residence time trading above the psychological level of 4 zł. From the behavior of the EUR / CHF will depend on whether we will pay for the franc about 4 zł, or maybe closer to 4.30 zł. We believe, however, that the end of 2015 exchange rate of CHF / PLN in a sustainable manner does not fall below this level 4 zł. With expensive franc should be So learn to live. there is no other way. ” – Tells Marcin Kiepas with Admiral Markets.

So what should I do owners of apartments purchased for loans in Swiss francs? Sales in these market conditions may be difficult or even unrealistic. Even before the release of the currency of the sale of housing loan frankowym was quite a challenge, so as not to pay extra for the transaction.

“The current situation will be reflected in the stagnation in the housing market built in the time of greatest popularity franc loans. To sell such apartment should have been increased bid, which in today’s market conditions is unrealistic. Customers who are looking for new apartments on the secondary market generally exert strong pressure on selling negotiation. However, in this case, the requirement will be a price reduction request in advance sentenced to a refusal. ” – Says Vladimir Wielogórski, director of the primary market in Metrohouse.

Frankowym pechowcom probably will not help the government. Although all political options have good intentions, one of the ideas is repaying installments currency rates before the SNB decision, it will be difficult to explain to other borrowers in dollars and euros, why not help them to be. Loss rigid banks loan installments will have to pay the Treasury or the banks, and so basically all citizens. In Poland there is also a repeat scenario Hungarian who, contrary to appearances, and so it is a compromise of banks and the government. Foreign currency loans to forints frankowych proposed after the course of a few months rather than years. The only advantage of this approach is to protect borrowers from such situations with which we have experienced in recent days. However, the Financial Supervision Commission in the commentary for service in November 2014 gazetaprawna.pl found f ezmiany implemented in Hungary do not seem to have a justification for both economic and legal. Economically, according to the calculations of the KNF, obciążyłoby that the banking sector in the amount of 40-50 billion zł, while loans in foreign currency is one of the best groups of loans serviced at all. One would also have to pay the difference.

The Borrowers therefore remains to cry and to pay and wait for a positive change in the exchange rate franc and potential aid from the government and banks. You can also try to offset the negative growth rates franc, although it will not be easy. “Ways to cope with such a large increase in the CHF / PLN, unfortunately, there are not too many. Possible solutions can only tackle the small adverse change” – said in a comment Shortcuts from the Home Loan Notus SA

The ideas presented by analysts do not differ from those of a few years ago, when for the first time there has been a huge increase in the Helvetian currency. One method is to extend the repayment period, it is possible, however, only provided that the loan was not taken out for a maximum period of a given bank. “It is necessary, however, keep in mind that a longer repayment period is higher interest paid over the entire period of the loan. Similar effects entails a change in the repayment of the loan – Shortcuts notes with DK Notus.

If the loan is repaid in installments decreasing system , the change in installments equal installments will also result in a reduction of credit. However, this change is also an increase in the total costs at issue in the entire repayment period.

Another solution is also a short-term suspension of the loan, ie. credit vacation . Unfortunately, most frankowiczów probably have long had time to take advantage of this option. In addition, the holidays give breath only for a moment, and the price of the franc by analysts may be high even for several months. Self-acquisition currency is a good way to save a few dozen gold on installment but not to kuteczny end, the more that the rapid draining of the franc to the Polish market will increase its prices in exchange offices and banks.

“Unfortunately, in the current situation of the borrower in debt in CHF do not have too much room for maneuver and reduce your payments or freedom from debt without incurring large costs. Any solution will be expensive and unfortunately only makes sense to wait out. It remains for us to count on as soon as possible appreciation of the zloty and the reduction of the CHF and lower loan installment. This should not be expected in the coming weeks. This means that everyone in debt in CHF will have to pay the next few installments in unprecedented heights. “- Says in his commentary Jaroslaw Sadowski Expander. The analyst believes that we should not jump to decide to translate the loan, because this solution does not only not improve the situation, but it can worsen it. The amount of debt, calculated according to the current stock will remain because very high. Moreover, when we replace the obligation debt in gold, there will be much higher interest. This will be du e to an unfavorable difference in interest rates, which in Poland are much higher than in Switzerland. After currency translation installment would be so for another few hundred dollars higher than it is now.

The topic of trouble with repayment of loans in Swiss francs stuck motto: Enlistment credit in the currency in which you earn . Marne is a consolation to several hundred groups of people who often did not have the basic knowledge about the loans, currencies and economies and their sole purpose was the choice of the cheapest loan. You could have a claim to the customers that naively selecting a foreign currency loan would pay lower installments, increased credit capacity that does not postpone for a rainy day money saved by paying lower installments than holders of zloty-denominated loans. However, these clients are guided allegations towards banks. If prices fall Helvetian currency until July 2008, is that none of the bank’s currency analysts did not know that one day this situation will turn around and the value of the franc will have to be reflected? So today frankowych crowd feels deceived borrowers by banks and left to their fate by state institutions. Analysts suggest that the loans were taken out for years, and for some time the situation can be significantly improved. Question how many of those 600,000 borrowers endure high franc.

Source: Admiral Markets, DK Notus, Expander, Metrohouse, our

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