4 ms·
IIRC, in the case of Poland people had mortgages pegged to the Swiss Franc. A central bank can only peg to one currency.
by secondcoming 4y ago
IIRC, in the case of Poland people had mortgages pegged to the Swiss Franc.
A central bank can only peg to one currency.
- jacquesm 4y agoDepended on the bank. Quite a few in Euros, some in other currencies, even USD. But if you wanted your mortgage in Zloty then suddenly the interest was twice as high.
- landemva 4y agoHmmm so banks offered a choice to be a forex speculator, and some took the lower interest rate bait. The risk is dramatic forex moves which make it near impossible to make payments.
- int_19h 4y agoIt makes sense that a currency that is more likely to lose value within the term of the loan would lead to a higher interest rate, no?