Poland’s Supreme Court docket deferred making a ruling on the case of loans denominated in foreign currency on Thursday, as a substitute asking the Court docket of Justice of the European Union (CJEU) to assist it resolve a procedural challenge on the appointment of judges.
Polish banks are going through a bunch of lawsuits linked to shoppers who held mortgages denominated in foreign currency, particularly the Swiss franc. Nearly one million Poles holding these loans had been hit by an surprising appreciation of the Swiss foreign money a number of years in the past which, in some circumstances, doubled their excellent debt.
The banks had been hoping that the Supreme Court docket would offer some authorized readability over points associated to foreign money loans, together with the banks’ proper to compensation to be used of capital upon the invalidation of a foreign money mortgage contract in addition to the legitimacy of claims by the lender and borrower within the occasion of the annulment of a contract.
However this readability did not materialise after the Court docket determined to hunt assist from the CJEU on quite a few authorized points.
“The sitting ended with the sending of preliminary inquiries to the Court docket of Justice of the European Union,” Supreme Court docket spokesman Aleksander Stępkowski mentioned. “They concern the issue of appointing judges and the system of justice within the Republic of Poland… Sadly, all these doubts regarding loans denominated and listed in a overseas foreign money stay unresolved.”
The Supreme Court docket moreover requested the CJEU concerning the compliance with EU regulation of a Polish regulation barring the Supreme Court docket from vetting choose appointments, and about one of many Constitutional Tribunal’s ruling and, basically, concerning the standing of the Constitutional Tribunal as a courtroom in keeping with the EU regulation.
The Supreme Court docket had beforehand postponed the sitting on the FX mortgage challenge a number of instances, citing pandemic-related considerations and want for opinions on the matter from central financial institution NBP and monetary market watchdog KNF, amongst others.