The National Bank of Serbia announced on Monday that it would "strive to find a swift solution to help citizens with loans in Swiss francs," Beta reported.
Loans in foreign currencies should be forbidden, as this is the case in most western European countries. E.g. you can't take a loan in Swiss francs in France.
Currency is one of the constituent elements of sovereignty.
They are now "in dire straits after the Swiss currency surged suddenly."
Indeed.I spare a thought for the millions of CF mortgagees who are anything but well-off.For those with long term mortgages who were unable to switch to other currencies, there could well be repayment failures up ahead.Next question arising is the reason which led the Swiss to unpeg their currency from the single currency.Do the know something that ordinary European citizens don't? I think the Swiss know that the only game left in town for the EU is printing which will be announced next week by the ECB and it will be big enough to bankrupt Switzerland had they still kept their currency pegged to the Euro.The Eurozone, as an economy, is holed below the waterline. The ECB is frantically pumping but it is now inevitable that the bloc will fracture, the currency will evaporate and the people and businesses will suffer. Civil strife is likely and warfare a possibility.The euro is going down and it will be a one way trip.
"Fixing the rate at RSD 102 for one Swiss franc, which means eliminating currency risk for the users of these loans, does not just spell costs for banks, but it is not fair to the loan users who were more cautious at the outset and took their loans in euros, because they remain exposed to the currency risk they assumed consciously," the central bank said.
Every citizen that took a loan in a foreign currency, may it be Euro or Swiss Franc or US$, must have been aware of the currency risk. If you want to be safe, take a loan in your own currency, the Serbian Dinar. Of course you have to pay much more than the 3-4% interest rate then - which makes sense with the Dinar constantly losing value compared to Euro.
They are now "in dire straits after the Swiss currency surged suddenly."
Indeed.I spare a thought for the millions of CF mortgagees who are anything but well-off.For those with long term mortgages who were unable to switch to other currencies, there could well be repayment failures up ahead.Next question arising is the reason which led the Swiss to unpeg their currency from the single currency.Do the know something that ordinary European citizens don't? I think the Swiss know that the only game left in town for the EU is printing which will be announced next week by the ECB and it will be big enough to bankrupt Switzerland had they still kept their currency pegged to the Euro.The Eurozone, as an economy, is holed below the waterline. The ECB is frantically pumping but it is now inevitable that the bloc will fracture, the currency will evaporate and the people and businesses will suffer. Civil strife is likely and warfare a possibility.The euro is going down and it will be a one way trip.
Loans in foreign currencies should be forbidden, as this is the case in most western European countries. E.g. you can't take a loan in Swiss francs in France.
Currency is one of the constituent elements of sovereignty.
"Fixing the rate at RSD 102 for one Swiss franc, which means eliminating currency risk for the users of these loans, does not just spell costs for banks, but it is not fair to the loan users who were more cautious at the outset and took their loans in euros, because they remain exposed to the currency risk they assumed consciously," the central bank said.
Every citizen that took a loan in a foreign currency, may it be Euro or Swiss Franc or US$, must have been aware of the currency risk. If you want to be safe, take a loan in your own currency, the Serbian Dinar. Of course you have to pay much more than the 3-4% interest rate then - which makes sense with the Dinar constantly losing value compared to Euro.
"Fixing the rate at RSD 102 for one Swiss franc, which means eliminating currency risk for the users of these loans, does not just spell costs for banks, but it is not fair to the loan users who were more cautious at the outset and took their loans in euros, because they remain exposed to the currency risk they assumed consciously," the central bank said.
Every citizen that took a loan in a foreign currency, may it be Euro or Swiss Franc or US$, must have been aware of the currency risk. If you want to be safe, take a loan in your own currency, the Serbian Dinar. Of course you have to pay much more than the 3-4% interest rate then - which makes sense with the Dinar constantly losing value compared to Euro.
They are now "in dire straits after the Swiss currency surged suddenly."
Indeed.I spare a thought for the millions of CF mortgagees who are anything but well-off.For those with long term mortgages who were unable to switch to other currencies, there could well be repayment failures up ahead.Next question arising is the reason which led the Swiss to unpeg their currency from the single currency.Do the know something that ordinary European citizens don't? I think the Swiss know that the only game left in town for the EU is printing which will be announced next week by the ECB and it will be big enough to bankrupt Switzerland had they still kept their currency pegged to the Euro.The Eurozone, as an economy, is holed below the waterline. The ECB is frantically pumping but it is now inevitable that the bloc will fracture, the currency will evaporate and the people and businesses will suffer. Civil strife is likely and warfare a possibility.The euro is going down and it will be a one way trip.
Loans in foreign currencies should be forbidden, as this is the case in most western European countries. E.g. you can't take a loan in Swiss francs in France.
Currency is one of the constituent elements of sovereignty.
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