Poland May Be ‘Brutal’ on Foreign Lending, Belka Says

Poland is prepared to use “brutal” measures to control foreign currency lending to people who don’t have protection against currency risk, central bank Governor Marek Belka said.

Lending in foreign currencies was widespread in Poland and other eastern European countries before the financial crisis, with banks offering lower interest rates for loans in Swiss francs and euros. The cost of repaying loans in Polish zloty or Hungarian forints soared when the local currencies plunged during the recession.