Uncertainty Remains for Polish Banks after ECJ Ruling on Swiss Franc Mortgages

DBRS Morningstar considers the impact of the European Court of Justice (ECJ) ruling over a dispute on a mortgage loan specified in Polish złotys (PLN) but indexed to the Swiss franc (CHF) increases the risk of provisions for Polish lenders from the conversion of the mortgages in foreign currency. This is due to DBRS anticipating a potential increase in litigation in Poland relating to these mortgages.