A lot of households in Central and Eastern Europe are waking up this morning and feeling significantly more stressed about their private finances than just a month ago. The reason is that a lot of households in CEE have funded both home and car purchases with foreign currency loans - mostly in euros and Swiss francs (CHF). Worries are undoubtedly largest for households funded in CHF, as the CHF continues to strengthen on the back of rising global risk aversion and carry unwinding. CHF loans have been especially popular in Hungary, Poland, Romania and Croatia, while foreign currency lending in the Baltic States and Bulgaria has primarily been euro-based. Just as worried as the households that have funded themselves in foreign currency should be the CEE banks that granted the loans - as should banking sector regulators.