Franc Cap Won’t Cure E. Europe Mortgage Pain
The Central Bank of Switzerland's move to stop the appreciation of the franc against the euro may not be sufficient to help those in Eastern Europe who have mortgages denominated in Swiss Francs. About two-thirds of Hungarian loans and over half of all Polish home mortgage loans are composed of Swiss Francs and though the exchange rate cap is helping to stop people from defaulting, the high value of the franc is still hurting growth within the region.