Warsaw Stock Exchange has plummeted in terms of capitalization by 35Bn USD. Mass selling of shares has caused decrease in the value of Polish investments by 8.9Bn USD according to Polish Rzeczpospolita. According to calculations, more than 4Bn USD were lost in private pension funds, 3Bn USD were lost through shares’ prices decline and 2Bn USD through private investment funds. In comparison to the situation of 2008, when Lehman Brothers declared their bankruptcy, the capitalization of companies on WSE declined only by 8 Bn USD.

Additional negative factor is devaluation of Polish zloty (PLN) to Swiss Franc. Before recession of 2008, the price of Swiss Franc was 2 PLN, after recession it was stabilized at 3.5 PLN. However, after the recent decrease of U.S. ratings from AAA to AA+ by Standard and Poor (S&P), the rate has went up to 4-4.2 and still on its increase. The value of the mortgage loans in this regard has increased by more than 5Bn USD. Mortgage loans in Swiss Franc were taken by approximately 700K Polish citizens, which bought real estate on credit.

Situation remains very volatile as global markets continue their decline and investors continue selling shares.

UAIndex