Cyprus Property News magazine for overseas buyers & real estate investors

Wednesday 30th September 2020
Home News Poles with loans in Swiss francs win EU case

Poles with loans in Swiss francs win EU case

A DECISION by the European Court of Justice could cost the Polish banks around 44 billion zloty (around €10.2 billion) following its ruling in favour of Polish homeowners who took out mortgages denominated in Swiss francs.

Many borrowers took their case to the Polish courts alleging that their mortgage contracts contained unfair terms. Although the Polish courts generally ruled in favour of the borrowers, they were unable to agree what should happen to their contracts.

But on Thursday the European Court of Justice ruled that the contracts would have to be cancelled. The court’s decision enables the borrowers to repay the balance of their debt in zloty, at the original exchange rate, rather than in Swiss francs.

But Polish borrowers will still have to take their cases through the local courts and any conversion costs to zlotys could be spread over years.

In 2014, Hungary forced its banks to convert its foreign exchange mortgages, most of which were linked to the Swiss franc, into the local currency (the Hungarian Forint.) In 2015, Croatia followed suit.

But in April this year Greece’s Supreme Court ruled overwhelmingly that some 70,000 people who’d taken out loans denominated in Swiss francs would have to repay them at the current exchange rate; not at the time they were issued by the banks.


  1. Does the wrong contracts not mean that contracts are annulled. Enabling the borrowers
    To walk free without paying the mortgage.

Comments are closed.



EUR - Euro Member Countries


EU vows to take aim at ‘golden visa’ programmes

For years, wealthy Chinese have made investments in Cyprus and Malta in exchange for European Union passports – so-called golden visa transactions. Now, Brussels...

Wealthy Britons turn to Cypriot citizenship

The number of British entrepreneurs looking to "buy" citizenship from countries offering visa-free access to the European Union has risen sharply, investment migration firms...

Mixed outlook for real estate

BNP Paribas has released its second 2020 report regarding the property market outlook post-pandemic, presenting forecasts about real estate in uncertain times. The obvious differentiation...

you're currently offline