By Dr Robert Lewandowski, attorney at law (radca prawny) at Derra, Meyer & Partners in Warsaw
In the past many Poles were granted mortgages by domestic banks within Poland in Swiss currency as the conclusion of such loan agreements in terms of repaying interest seemed to be cheaper and in favour of the borrowers despite the fact that the borrower received their salaries in Polish currency and that such loan agreements did not include clauses limiting/fixing the exchange rate of the Swiss Franc (CHF) to Polish currency (PLN)1. As a consequence of later exorbitant jumping of the value of the Swiss Franc in relation to PLN, many borrowers have been forced to repay excessive rate instalments and are still suffering losses often leading to their bankruptcy. In its judgment dated 20th September 2017, passed down in the case of Ruxandra Paula Andriciuc and others against Banc Româneascâ SA (C – 186/16), the Court of Justice of the European Union (CJEU) decided in favour of the Plaintiff who concluded loan agreements with a Romanian bank subject to Swiss Francs in the years 2007-2008 in order to acquire real estate and refinance some other credits. The issue was that the Romanian borrowers received their salaries in Romanian leu (RON) and according to those agreements any exchange rate difference burdened the borrowers due to the fact the loan should also be repaid in Swiss Francs. After a later drastic increase of the value of the Swiss currency, the Plaintiff took the bank to court requesting the court to declare some clauses of the loan as null and void and seeking currency conversion on the basis of the rate exchange between CHF and RON on the day of the conclusion of the loan agreements. The case was finally submitted to CJEU for examination and the European Court stated that the banks should have provided the borrowers with sufficient information as to the anticipated changes and fluctuations of the exchange rate of the Swiss Franc to Romanian currency and the defendant failed to do this in relation to the Plaintiff.
As the Polish banks also failed to inform their clients (borrowers) about the possibility of volatility of the rate of exchange of the Swiss Franc, it is expected that the aforementioned judgment of the CJEU could also effect positively and strengthen the position of Polish Swiss-Franc – Borrowers towards their domestic banks here in Poland.
1Such borrowers are commonly named “Frankowicze” (Swiss-Franc – Borrowers) in Poland
0+
