Thursday, January 15, 2015

The cascade effects...

...from the rapid CHF appreciation will be very painful for some countries.  The below snippet concerns Poland, but Ukraine, Hungary and other former Easter Bloc countries have significant percentages as well.

Polish banks had 131 billion zloty ($35 billion) of Swiss-franc mortgages in their portfolios as of Nov. 30, amounting to 46 percent of all home loans, according to data from the country’s financial market supervisor. Poles and other Eastern Europeans rushed for cheaper funding in francs and euros in the run-up to the global financial crisis in 2008, only to see their borrowing costs surge due to currency swings. 

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