Swiss Franc Denominated Loans
Thousands of borrowers across Europe have been negatively affected by changes to the Swiss Franc exchange rate. The number of borrowers affected and the extent of their losses have increased following the Swiss National Bank’s unexpected discontinuation of the long-standing minimum exchange rate of 1.20 CHF per euro announced on January 15, 2015. Borrowers, including mortgage seekers, were advised by banks to take out loans based in Swiss Franc because the interest rate was lower. The loan amounts now due are exponentially increased in the respective local currencies due to unanticipated changes to the exchange rate. SwissFrancs were never physically exchanged in these transactions.