Loans in Loydie – how much do you lose on it?

Everyone has already heard about the franc loan and the current situation. For over two years it has been a topic that does not go off the headlines and is a constant reason for discussion. Loans in Loydie and related information divided Poles into two camps. Some believe that the Loydieholes are guilty themselves, others feel sorry for them and expect the state to somehow solve their problem. What is their current situation? What are their options and what awaits them in the coming years? Read.

Loydie sometime and today

Once upon a time, i.e. in 2008, the Swiss Franc exchange rate was around PLN 2. Many of the bank’s customers, then and earlier, were tempted by a foreign currency loan because it guaranteed a profit of several thousand zlotys (over the years of repayment). And then, in 2015,   Black Thursday came in the Polish financial industry. The Swiss National Bank decided to reject the protective policy regarding the exchange rate of euro to franc. And although it surprised almost everyone, with market analysts at the forefront, the effects did not have to wait long. The value of the Swiss franc significantly strengthened relative to other currencies, and in Poland its exchange rate at some point even exceeded the level of PLN 5. You don’t need to be a qualified mathematician and financier to know what consequences it has (and still has) for debtors.

Loan in Loydie?

What is the current situation of franchisees in the context of the exchange rate of this currency? What about loans in Loydie? Probably it does not matter to hypnotize the next tables with current data, but you have to admit that … it could have been worse. It is possible that debtors will experience a decrease in monthly installments. For this to happen, one condition must be met. The euro exchange rate against the Swiss franc would have to exceed 1.15, which would allow to reach a CHF rate of around 3.50-3.60 PLN. Experts have even undertaken some calculations, which show that if the decrease were even greater and the franc were worth PLN 3.08, then the Loydie would return to the installments known from 2008, when the currency was valued at PLN 2. This scenario has a chance to prove itself thanks to low interest rates in Switzerland as of today. The euro-Loydie relationship, in which the euro is becoming stronger, is not without significance. And the higher the EUR / CHF rate, the lower the franc to zloty exchange rate. It is far from hurray optimism. The problem of loan repayment in Loydie will not disappear overnight, as the currency exchange rate is still unstable. We must also remember the difference between the average franc exchange rate at the NBP and the conversion tables available to banks. The debts that the debtors must pay in them will still be higher than the amount they borrowed. In practice, this means, among other things, that it is completely unprofitable to sell a flat bought on franc loan. What to do? Wait.

Who can help?

If you are reading this text, you probably cannot afford to pay the loan amount immediately and once. We must therefore reject this option. Two more remain.

The first is to be patient until the government decides how or whether to help people with loans in Loydie. It is uncertain whether any steps will be taken. President Andrzej Duda is the author of the bill, which on August 2 this year. flowed into the Sejm. It assumes assistance to foreign currency debtors and is an amendment to the act on supporting borrowers in financial difficulties. This, in turn, is to be based on allowing interest-free loans to pay off subsequent installments. Who could use this solution? Borrowers who have lost their jobs or the monthly installment amount to over 60% of their household income. This is a proposal of banks that are not entirely in favor of the presidential idea, unlike the Polish Financial Supervision Authority, the National Bank of Poland, and deputy prime minister Mateusz Morawiecki.   Bankers suggest that people who have borrowed to invest or purchased several apartments for rent should be excluded from such assistance in repayment in Loydie. They suggest that the support option should be narrowed down to those living in apartments bought on credit, with the proviso that their area could not exceed 75 sq m. The procedures would be completed in 2019. It is difficult to say whether this will happen – so far the Chancellery of the President has not referred to such a solution. And the Sejm did not plan discussions about Andrzej Duda’s idea.

The second option, somewhat similar in concept to the first, is a loan that allows you to repay your loan in Loydie immediately. A very ad hoc method, which does not solve the problem of debt in the bank, but allows it to be moved to a more stable space of the Polish zloty. Before we decide on such a maneuver, let’s consult specialists, e.g. from Vivus, Wong or Filarum – they will present us an offer on the basis of which we will decide on the next steps.

Currency conversion of loans in Loydie – is it worth it?

Repayment of the loan in Loydie is a nightmare for borrowers, but it is also a real problem for banks. On the one hand, they try to refer to the proposal of the head of state, on the other – they create ready-made solutions themselves. I am talking about loan restructuring projects, presented inter alia by PKO BP. Ultimately, currency conversion of such debt would result in a reduction of the loan installment so that its amount does not exceed the value before restructuring. Is this a good solution? Many experts stipulate that currency conversion of the loan in Loydie, in general, will not reduce its installment, moreover – the debtor will be exposed to an increase in the base interest rate.

Loans in Loydie in practice

There is still talk about how much money Loydie lose per month due to the current exchange rate. Learn the history of one of them – let the numbers speak.

The borrower, whom we will call Adam, took a loan in Loydie in December 2005. for the amount of 166 thousand Loydie. He wanted to buy a flat in one of the Warsaw districts. Deutsche Bank became its lender. The exchange rate was then PLN 2.46, so Adam calculated a fixed installment of 980 Loydie, i.e. around PLN 2350. Seven months after signing the contract with the bank, the franc exchange rate fell to PLN 1.78, so the installment decreased – Adam paid about PLN 1800 per month. In 2011, the currency made its first drastic jump, which resulted in an increase in receivables to approx. PLN 3,400 each month. The rest of the story is already known – since 2015. installment for a franc loan is over PLN 4,400. It was also influenced by the reduction of loan repayment time from 25 to 17 years and fees imposed by the bank, compared to the average franc exchange rate at the NBP. When asked how much Adam loses per month in franc loan, the answer is simple: about PLN 2,600.

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