Eastern Europe’s Borrowers See Relief as Swiss Peg Franc to Euro
The Swiss Government has set its currency to a minimum of 1.20 francs per euro which has allowed the countries of Hungary and Poland to breath a sigh of relief since most home mortgage loans in the two countries are denominated in Swiss Francs. The move has slightly calmed markets as the Swiss Franc has grown in value against most major currencies, due to concerns over fiscal problems in the U.S. and Europe and global concerns about a second recession in the developed economies.