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Poland's financial body pushes for measures to encourage FX loan conversions
January 13, 2017 / 6:28 PM / a year ago

Poland's financial body pushes for measures to encourage FX loan conversions

WARSAW, Jan 13 (Reuters) - Poland’s Financial Stability Committee recommended on Friday that banks should have to put more capital aside if they hold foreign exchange-denominated mortgages, in an effort to get more of the loans converted to zlotys.

Solving the problems of bank customers with Swiss-franc denominated mortgages after the currency surged in 2015 was one of President Andrzej Duda’s promises during the presidential election campaign in 2015.

In August last year, Poland offered banks inducements to help its home owners struggling with Swiss franc mortgages to switch them into zlotys, in a step back from earlier proposals for a compulsory conversion process.

Now Poland’s financial stability body, the KSF, is recommending making it more expensive to hold the loans and is pushing for a sizeable risk buffer of 3 percent to any exposure to the loans.

The FSC comprises the central bank governor and head of the financial supervisor KNF, among others.

The KSF also recommended introducing changes to the borrowers suport fund but did not recommend additional taxation of forex loans.

A full text version of the press release is available here: here (Reporting by Marcin Goettig; Editing by Elaine Hardcastle)

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