Poles see threat to mortgages in foreign currencies

The steep fall in the value of eastern European currencies could create problems for local banks, especially those with high levels of foreign currency exposure, warned a Polish banker.

“If the zloty is at the current level over the next six to 12 months and we see an increase in unemployment, then we will see an increase in write-offs,” said Krzysztof Rosinski, chief executive of Getin Holding, a local banking group that had been one of the most aggressive foreign currency lenders during the recently ended real estate boom.