Loans in Swiss francs could become more tempting

Ziarul Financiar 15.08.2008
Loans in Swiss francs could become more attractive considering that the franc could strengthen to 1.58 francs against the euro in December, from 1.6211 francs at present, according to an exchange rate forecast released by Raiffeisen Bank. According to analysts at the Austrian bank, if the exchange rate falls below 1.6 Swiss francs/euro, people could start to take out loans in Swiss francs, with the anticipated depreciation of the European currency in 2009 to have a positive effect on the franc. "The problems caused by the worldwide economic crisis could generate a renewed surge in risk aversion, the ideal circumstances for an appreciation of the Swiss franc against the euro", believe Raiffeisen analysts. Exchange rates such as those anticipated for December were also recorded in 2005, when the Romanian market was just discovering the franc as an alternative currency for lending.