Foreign currency loan problematic (http://www.washingtonpost.com/wp-dyn/content/article/2009/03/14/AR2009031400633.html?hpid=topnews)
Interesting read. What's your take on this Marty?
It's not such a big deal.
First of all, the trend is already reversing - CHF (the most popular foreign currency for loans by far) has fallen against zloty by about 10% over the last 3-4 days.
Second, while this means the debt amount in zloty will increase, the Swiss interest rates are dropping - this means that if you are repaying a loan with both the basic debt amount and the interest compounded (as most people do), your monthly installment is not actually going to be significantly bigger. So as long as people continue to get income, this should not be a big issue.
Plus, well, if someone wanted to gamble on currency exchange rates, serves them right. :p
the CHF? why not the Euro?
They've been morally bankrupt for years. Just look at Marty. :(
Quote from: I Killed Kenny on March 14, 2009, 06:07:33 PM
the CHF? why not the Euro?
Maybe they figure the Euro is going to disintegrate soon, due to the economic crisis.
Quote from: Neil on March 14, 2009, 06:49:48 PM
Quote from: I Killed Kenny on March 14, 2009, 06:07:33 PM
the CHF? why not the Euro?
Maybe they figure the Euro is going to disintegrate soon, due to the economic crisis.
LOL
Quote from: I Killed Kenny on March 14, 2009, 06:07:33 PM
the CHF? why not the Euro?
Cheapest credit, based on a long term behavior and official interest rate of the Swiss central bank.
In fact the only people who lost something by taking a loan denominated in CHF so far, are those who took it around the middle of the last year, when its exchange rate against Polish zloty was lowest in history. For someone who took a loan 3-4 years ago, assuming Polish currency doesn't crash completely, they are still ahead compared to if they would have taken a loan in Polish zlotys or euros. It's just a short setback.