Staff of Reuters 2 minutes Read (Reuters) – WARSAW, India, July 2 (Reuters) – According to Central Bank Governor Adam Glapinski, the legal risk associated with foreign currency mortgages has become the primary threat to the integrity of Poland’s financial system. Thousands of Poles took out Swiss franc loans more than a decade ago to take advantage of lower interest rates, but their fees skyrocketed when the Swiss currency’s value soared. Many people have taken banks to court for allegedly harsh terms. The Supreme Court deferred rules on how lower courts should handle the cases in May, leaving banks and mortgage holders in confusion. The court requested comments on the matter from the central bank, the financial regulator KNF, and the human rights ombudsman. In response to court inquiries, Glapinski stated, “The legal risk of the portfolio of foreign currency loans has expanded and has recently become the greatest threat to the stability of the domestic financial system.” “Until now, the lack of a consistent line of case law has created uncertainty that is harmful to both banks and borrowers, as it makes future financial planning difficult for both.” The date for the next sitting has yet to be determined, but First President of the Supreme Court Malgorzata Manowska has stated that it will take place in September. (Alicja Ptak contributed reporting, and Philippa Fletcher edited the piece.)/n
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