Social impact of the crisis of foreign currency-related mortgage loans

Loans indexed and denominated in foreign currencies (related to foreign currencies) used to be granted in Poland to those not receiving income in a foreign currency, in the period from 2000 to 2013. A characteristic feature of these loans is that they were usually granted in the countries of Central Eastern Europe. In this period, loans were the fastest growing item in the banks' assets. In the period from December 2002 to the end of 2012, the share of housing loan in banks' assets increased more than fivefold, and fourfold in receivables from the non-financial sector. In 2005-2010, loans dominated the structure of the balance sheet of the banking sector. A significant change in foreign exchange rates (e.g. CHF, EUR, USD and JPY) in relation to the zloty (a significantly depreciated PLN) contributed directly to the current value of the costs of operating liabilities, as well as the valuation of total mortgage obligations related to foreign exchange, the value of credit and its costs calculated in PLN.