WARSAW, June 15 (Reuters) – The European Union’s top court on Thursday backed Polish borrowers with Swiss franc-denominated mortgages in a long-running case that the Polish regulator has warned could cost the country’s banks 100 billion zlotys ($24 billion).
Hundreds of thousands of Poles took out mortgages in foreign currencies, mainly in Swiss francs, attracted by lower interest rates. They are now repaying them in far bigger instalments than expected, however, after the Swiss franc soared against the zloty and following interest rate hikes in Switzerland.
The court ruling means banks cannot charge for the cost of capital on foreign currency loans which were deemed invalid because they contained unfair terms, a verdict which had been expected by analysts.
EU top court backs consumers in Polish FX mortgage case
