https://www.bloomberg.com/news/arti...ver-franc-loans-quicktake?srnd=premium-europe ,,For decades, Switzerland boasted some of the world’s lowest interest rates, so franc loans were a way for Polish and other eastern European consumers to escape high borrowing costs in their home countries. In 2008, mortgages taken out in zloty had average annual interest rates of about 8.7%, roughly twice that of similar Swiss-franc loans issued by Polish banks. As the global financial crisis pushed borrowing costs in Western countries toward zero, rates on new franc loans fell to 2.7% in 2010, central bank data show. The loans were offered by banks throughout eastern Europe, not just Swiss lenders. In Poland, non-zloty loans peaked at 198 billion zloty in 2011 and currently stand at 127 billion zloty ($32 billion) in total."
I have a feeling Poland will implode in the next crisis. There's lots of small cracks showing with many of their lenders on all levels, big and small. Hope for the best for them but I think there's short term pain. I have some small long exposure which I'm eliminating (not through the markets).