Poland Swiss‑Franc loan reforms

In July 2026 Poland’s parliament passed a law—often called the “frank law”—that automatically suspends repayment of principal and interest on Swiss‑franc‑linked mortgages once borrowers file a lawsuit against a bank. The law, signed on 17 July, also prevents banks from terminating contracts or reporting defaults during the suspension period. Consumer group Stop Banki Bezprawiu warned that set‑off provisions could still strip borrowers of statutory interest, potentially shifting large sums from citizens to banks, and it submitted amendment proposals to protect that right.

By early August, the law’s implementation details were clarified. Effective 7 August, borrowers can halt payments until court resolution, and banks are barred from contract termination, credit‑bureau reporting, or refusing partial payments during the suspension. The announcement also included a separate reform: the long‑standing WIBOR reference rate will be replaced by the POLSTR index for new loan agreements from 1 January 2027, with possible effects on existing contracts up to 2036. Legal experts cautioned that annexes required for the transition may contain clauses waiving future claims against banks, urging consumers to scrutinise the terms before signing.