More than 50,000 Greeks took a breath of relief upon the news that the Swiss National Bank (SNB) decided to peg the Swiss Franc (CHF) to the euro. The 50,000 Greeks are borrowers who got their loans – most for real estate purchases – on Swiss Franc and not in euro. The SNB intervention in the foreign exchange market pegged the lower limit of the franc of 1.20 against the euro. This had a direct impact in the Greeks’ loans not only in the borrowed total sum but also in the monthly tranches they pay back. The majority of the loans/mortgages were conducted in 2008 when the CHF was at 1.65 towards the euro.
However the exchange rate devaluation must create a nightmare for the Greek tax evaders who brought their money to Swiss banks. Unless they keep them in euro safes…
