IMF warns that debts in Swiss francs can endanger domestic economy

National Bank of Serbia has repeated its warning to the citizens who decide for mortgage loans in CHF, because of the latest report of the International Monetary Fund that the sudden appreciation of Swiss francs can have harmful effect on economies that have large debts in CHF.

At the beginning of this week, IMF issues announcement with the warning that the country should be careful with the debts in CHF, because sudden appreciation of this currency, casued by sudden development of trading at lower exchange rate, could have harmful effect on the economies with the large debts in francs.

In that report, IMF stated that such actions, which implies debts in currencies with low interest rates, such as Swiss francs, for the sake of collecting of means for investments in the currencies with high interest rates, could temporarily weaken Swiss franc and lead to its falling beneath the balance level.