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Franc surge squeezes eastern European homeowners
When Agnieszka Gagala took out a Swiss franc mortgage in Poland in 2009, her debt amounted to 260,000 zloty (CHF64,000). After the Swiss National Bank (SNB) abandoned its defence of the franc, the exchange rates went into overdrive, leaving Gagala with 500,000 zloty to pay back. The 32-year-old’s monthly mortgage repayments, which started at 1,200 zloty, have now soared to 2,000 zloty, leaving her with 600 zloty to live from every month. “I can’t even tell you how distressed and angry I am right now,” she told swissinfo.ch. Gagala is not alone. Around 500,000 Polish homes were bought with franc loans. The SNB ... (full story)