The bankruptcy of Getin Noble Bank, announced in July 2023, is bad news for so-called “franc borrowers.” On the surface, this doesn’t change anything in terms of the legal assessment of loan agreements, and Swiss franc borrowers can file their claims arising from invalid loan agreements with the bankruptcy trustee for Getin Noble Bank, but first and foremost, these borrowers are learning right off the bat that their court cases have been suspended by the courts for an indefinite period. Thus, the period of legal uncertainty—the wait for a final judgment—is being prolonged. Moreover, the likelihood that borrowers with Swiss-franc loans will receive full satisfaction of their monetary claims against the bankrupt bank is now highly uncertain.
Some of the law firms representing Swiss franc borrowers in litigation hope that the receiver taking the reins on the bank’s side will streamline the settlement process and speed up the pursuit of monetary claims. This would be possible if the receiver were to recognize the monetary claims filed with him by Swiss franc borrowers and thereby include them on the bank’s list of creditors. But will the receiver really have that much courage? Recognizing the claims of Swiss franc borrowers requires a great deal of courage. Until now, all parties to the dispute have waited for a court ruling, and only after it was announced—when the bank’s management effectively obtained a basis for repaying the Swiss franc borrowers—did a swift settlement between the parties to the invalid loan agreement take place. Meanwhile, filing a claim with the trustee in bankruptcy proceedings implies either the trustee will recognize the claim and include it on the list of creditors—which, in a sense, replaces a judgment from a general court—or the trustee will not recognize the claim, and the case will return to court.
If we take an objective look at how the courts are ruling on cases brought by Swiss franc borrowers against Getin Noble Bank, and considering the established line of case law in these matters, the trustee should undoubtedly recognize the claims filed by Swiss franc borrowers and thereby relieve the judicial system of the burden of thousands of lawsuits awaiting adjudication. However, making such a decision requires great courage, because recognizing the interests of Swiss franc borrowers entails infringing upon the interests of the other party to the dispute—a powerful and influential one. Thus, what seems obvious—and has, after all, already been confirmed by hundreds of judgments from the common courts—may not necessarily come to pass. For opportunism, conservatism, and the trustee’s determination to safeguard his own interests above all else may ultimately prevail.
