SARON will replace LIBOR. Frankowiczka is complaining to the CJEU of the regulation of the European Commission – loans in Swiss francs.

From next year, the SARON rate is to replace the LIBOR rate in every contract and financial instrument in the European Union. A complaint against the regulation of the European Commission in this case was submitted to the Court of Justice of the European Union (CJEU) by a Polish Swiss franchise woman.

In October, the European Commission issued an implementing regulation, which states that from January 1, 2022, Swiss franc LIBOR indices will be replaced by SARON indices, published by SIX Swiss Exchange Financial Information AG (SIX). The indicators are used to calculate the loan installment.


SARON will replace LIBOR

Beata Sołowicz submitted a complaint to the Court of Justice of the European Union against this regulation. As Mariusz Korpalski, legal adviser representing her, said at a press conference on this matter, the complaint was filed under the treaty, as every EU citizen who is the subject of an EU law may submit a complaint to the CJEU within 2 months of its publication.

Korpalski said the complaint was based on three observations. Firstly – as he referred to – the regulation constitutes “an unprecedented interference in the binding contracts”, although so far in the discussion on the statutory solution to the problem of Swiss franc loans, opinions prevailed that contracts for such loans could not be modified by law.


– Secondly, the question is how this SARON will behave, because the European Commission declares that it will make every effort to ensure that its quotations do not deviate from the LIBOR quotations, but the methodology is completely different, LIBOR was future-oriented, and in the case of SARON, the data will be retrieved from the past. The formula for its calculation is extremely complicated. The consumer is not able to check whether the SARON calculations are correct – assessed Mariusz Korpalski.

Thirdly, the declarations in the preamble to the EC regulation, according to the legal adviser, indicate that the Commission took into account the interests of the banking sector only, because there are references to avoiding losses by banks and to the functioning of financial markets. – There is no question of loss of consumers at all, no consultation with consumers, or the functioning of the social market economy – he said.


Moreover, he added, the legislative delegation for the European Commission includes agreements “that were concluded after 2017 or 2018, while the problem with LIBOR for the Swiss franc is in the agreements concluded in 1999-2012”.

– We consider presenting this regulation in the preamble as a solution to or meeting the expectations of financial markets and presenting in the media that it is a solution for contracts in an earlier period as a misunderstanding – he assessed.

Frankowiczka: The European Commission is changing my contract

Beata Sołowicz emphasized that she “checked her contract many times” and it follows from it that any changes can only be made by means of an annex. – Suddenly, the European Commission changes my contract. (…) I was left with no choice, she said. She pointed out that although the behavior of LIBOR and SARON is similar so far, it is not known what the situation will look like in the long run.

Arkadiusz Szcześniak, the president of the Stop Banking Law Association, also emphasized that the work on the draft law on Swiss franc loans, which lasted several years, was accompanied by the opinions of lawyers or even the Supreme Court that “this problem cannot be solved in a statutory manner, because you cannot interfere with these contracts. “. He pointed out that if such a solution was possible, one should ask why the European Commission had not already resolved the problem of abusive clauses in Swiss franc contracts in the same way before.

As he said, his association raised comments to the regulation that agreements with LIBOR may only be changed by annexes, and the change in this form will only introduce a mess in Polish law and court judgments.

At the end of June this year. the number of active Swiss franc mortgage contracts amounted to 415.1 thousand. – it follows from the data of the Credit Information Bureau made available to “Rzeczpospolita”. Loans of this type are repaid by about 723 thousand. people.

PAP / Adam Ziemienowicz

Main photo source: Shutterstock

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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