SWISS FRANK REACHES A RECORD LEVEL AGAINST THE EURO Installments for loans denominated in Swiss Franks are rising steadily

The Swiss Frank will continue to gain against the Euro in the near future, says Dragoş Cabat, the chairman of the Association of Romanian Financial Analysts. Cabat claims that the Swiss Frank will gain against the Euro, because the Swiss currency is a good investment for investorsm and Switzerland is considered a stable country, as opposed to the woes of the Eurozone. The appreciation of the leu against the Euro will affect citizens that have taken out loans denominated in Swiss Franks, causing their loan payments to increase, said Dragoş Cabat: "Those borrowers will pay more".

The Swiss currency, the Frank, yesterday gained on the financial markets, to a record level against the Euro, stemming from increased demand for it, as it is considered a safe haven investment.

The Swiss frank had an exchange rate of 1.2693 units/Euro at 12.35, on the London market, but later weakened slightly to 1.2698 units/Euro.

The Swiss currency has strengthened amid the aggravation of the sovereign debt crisis of the Eurozone, gaining 16.6% against the Euro since the beginning of the year.

In 2010, the Euro weakened against 15 major currencies, as Greece and Ireland were forced to request a financial bailout package due to the high budgetary deficits, and the cost of sovereign borrowing climbed.

Analists state that investors are looking for safety, and for this reason the Swiss Frank is now being viewed as a replacement for the Deutsche Mark, Germany"s foreign currency. They say that if the worries over the situation of the countries on the fringe of the Eurozone won"t go away and the markets will be gripped by panic, then the Swiss Frank could very well strengthen to 1.20 units against the Euro.