Polish banks accept most proposals on CHF loans

By bne IntelliNews January 29, 2015

Poland's commercial banks have agreed to all the proposals put forward by the Polish Banking Union (ZBP) to deal with the problems produced for borrowers by the hike in value of the Swiss franc, the head of the lobby group claimed on Janaury 29. That suggests a swift resolution with the government could be on the cards.

The banks have agreed to pass on the negative Libor rate to borrowers, to alter repayment schedules without demanding additional collateral, and allow customers to convert loans from CHF to PLN at market rates without any additional fees, Krzysztof Pietraszkiewicz announced. The goal is to keep monthly installments at last year's levels and the solutions are expected to take effect on February 1.

The ZBP made its proposals on Janaury 23, in a bid to stem any tougher action from the government. With elections due in the autumn, the ruling Civic Platform is under pressure to deliver populist policy. Prime Minister Ewa Kopacz had suggested on January 26 that forced conversion of the loans below market rates was being mulled.

However, that risked the stability of the banking sector, and other officials have pledged such an extreme move is not on the cards. Economy Minister Janusz Piechocinski made similar recommendations to those of the ZBP on January 28.

However, he also called for three-year payment vacations to be introduced for both CHF and PLN borrowers. That would put the banks under more pressure. They still need to finance the Swiss franc loans they have on their books from the time they agreed 500,000 or so CHF mortgages during the boom years. Thus far, the banks have only agreed to the ZBP's rescheduling suggestion.

The SNB shocked global markets on January 15 when it removed the cap on the Swiss franc to the euro. The central bank also slashed rates to -0.75% as it bid to outrun an expected inflow of speculative capital on the back of the launch of the European Central Bank's quantitative easing programme, which was announced on January 22.

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

Polish ruling party's poll lead hit by EU spat

The popularity of Poland’s ruling party Law and Justice (PiS) has fallen below 30% for the first time since mid-2014, a poll showed on March 20. The survey, published by liberal newspaper ... more

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss