By Vangelis Dourakis

In the final straight comes the “hot” issue of loans to Swiss francs: in the middle of the month, that is, near July 15, it is estimated that the relevant arrangement will be submitted that will “close” this particular “front”. The “recipe” – according to the latest information – ending the government staff gives borrowers double outlet.

The impact on the financial system will be promoted to the financial system is considered to be manageable.

It will allow them to appeal to the out -of -court mechanism that will be “open” to those who have received loans to Swiss franc and who are known to allow debt settlement to up to 420 doses and under conditions Delete 80% of debt and 100% of interest.

In addition, a “formula” will also be formed, which will also provide for “haircut”, depending on the income of each borrower.

What will the ‘autonomous’ setting predict

This arrangement will have predetermined characteristics, be independent of the out -of -court and voluntary.

It will generally provide for the following:

  • The conversion of the loan interest rate from the Swiss franc into euros.
  • Scalable dose amount, that is, it will not be stable, but it will change year by year.

The haircut that will emerge with the conversion of the interest rate will start at 10% and reach up to 25%. The weaker the income and assets the borrower is, the greater the haircut of increases.

The “formula” adopted will divide borrowers into categories according to their income and assets (eg vulnerable, small and medium -sized).

By about 37,000 remaining loans, the 20,000 They are in the banks, and 17,000 are precarious loans managed by Servicers.

The total value of loans is valued at approximately 5 billion euros.

How were those who borrowed in Swiss francs were “trapped”

But what exactly happened and were “trapped” by those who borrowed in Swiss franc? During the years 2006-2008, most of them were temptation to receive these types of loans, the Franco-euro exchange rate stood at 1.6, that is, with 1 euro bought 1.6 Swiss francs.

However, this equality in 2009 began to fall and follow a constant downward trend, until 2011, when it was stabilized by the Central Bank of Switzerland in the 1.20.

However, since 15.1.2015 the exchange rate “unlocked” again and today it is almost 1 to 1.

So, the euro was underestimated by the Swiss franc, the more the borrower needed a monthly borrower to buy the Swiss francs of each monthly installment.

At the same time, the total debt of the loan capital of the loan is increasing, because although this is reduced by the payments respectively, this amount as it corresponds to euro is increased.

For examplea loan of 150,000 Swiss francs in 2007 corresponded to 93,750 euros with the equivalence of the two coins then at the 1.6. The same loan today corresponds to 150,000 eurosas the equivalence of the two coins rise to almost 1 to 1.

This treaty resulted in the debts of those who had received loans to Swiss francs constantly increasing, while many borrowers arrived to owe 70% more from the initial capital of the loan.