Austrian, Polish Borrowers Face Franc Hit Hungary Dodged
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Borrowers in Austria and Poland watched their Swiss franc mortgages swell when the Swiss National Bank dropped its cap on the currency, a surprise move that’s reversing the fortunes on what were once cheap loans.
The SNB decision to abandon the cap against the euro is hitting borrowers in the European countries where franc-denominated mortgages became popular as a way of borrowing before the financial crisis. Shares in Polish, Hungarian and Austrian banks plummeted.