Poles fret as franc loans add to economic woes

Magda Szczukiewicz, who supports a family of three in Warsaw, said she hoped for the best when getting a Swiss franc-denominated mortgage in 2007. Her timing couldn't have been worse.

The financial crisis caused the zloty to plunge in 2008 and her payments to jump again after Switzerland's unexpected decision to end its currency cap on Jan 15. After seven years of payments on her 300,000 zloty ($80,800) loan, Szczukiewicz now owes about 485,000 zloty on a small flat worth about 15 percent less than the purchase price.

"All I can do now is keep paying higher installments since I can't sell or rent the apartment with a profit and move to a bigger place," said Szczukiewicz, 31, who works in marketing at an insurance company. This is "keeping me from deciding on having a second child".