A Foreign Currency Mortgage and a Principle of Equity: Pro et Contra

Abstract

The legal regulation of foreign currency mortgages is one of the most pressing issues of contemporary civil and banking law. The relevance of the problem is determined by the fact that foreign currency mortgage is one of risky banking transactions that can cause considerable damage to all participants of banking transaction. The research is aimed at determining characteristics and patterns of legal regulation of property relations in the area of foreign currency mortgages as a type of banking transaction. To carry out the research, the author applies formal-legal and comparative-legal methods, methods analyzing the effectiveness of legal regulation. In the course of the research the author proves that the current state of regulation in the sphere of foreign currency mortgages is insufficient, as the law does not provide for necessary restrictions to execute the banking transaction in question. Also, the paper suggests a number of other conditions under which foreign currency mortgages are acceptable and that should be enshrined in law, including State assistance and aid to people affected by the foreign currency mortgage.