Polish złoty borrowers seek stability as rising rates and a WIBOR case at the CJEU fuel hope for change.
Borrowers’ Dilemma
While Swiss franc borrowers fought against questionable banking practices, złoty borrowers highlighted their own uncertainty. Franc borrowers faced currency volatility but benefited from Switzerland’s low, stable central bank rates. Złoty borrowers avoided currency risk but contended with higher, more variable interest rates than in Switzerland.
Interest Rate Shock
Post-pandemic, Polish interest rates surged from near zero (0.1%) to almost 7%. This sharp increase intensified demands for stability among złoty borrowers, especially as they observed franc borrowers’ successful legal battles against banks.
WIBOR Case at CJEU
The case concerning the Warsaw Interbank Offered Rate (WIBOR) reached the Court of Justice of the European Union (CJEU), prompting hope among złoty borrowers that their credit conditions might improve through legal intervention.