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Help for Poles with Swiss franc mortgages could cost PLN 9.1 bln

PR dla Zagranicy
Victoria Bieniek 11.04.2017 08:30
A bill to aid Poles with home loans in Swiss francs could cost about PN 9.1 billion (EUR 2.1 billion) to implement, according to a Polish Financial Supervision Authority (KNF) report.
Photo: Pixabay.com/Saramukitza.Photo: Pixabay.com/Saramukitza.

Under the bill, backed by President Andrzej Duda, banks will be required to refund the difference between an "allowed" spread and the actual spread on mortgages taken in Swiss francs between 1 July, 2000, and 26 August, 2011.

The latter date coincides with the introduction of “anti-spread legislation”.

Helping Polish borrowers with foreign currency mortgages was one of Duda's key election pledges.

The KNF report also analysed two other bills on Swiss franc mortgages.

A bill by Poland's largest opposition party Civic Platform (PO) would have borrowers convert their foreign-currency loans into Polish złoty at the current rate. It would also see banks waiving part of the difference between the new value of the loan and its worth had it initially been taken in the Polish currency. This bill would cost some PLN 11.1 billion, according to KNF.

A third bill, put forward by the conservative Kukiz'15 party, suggests that all foreign-currency home loans be recalculated as if they had initially been taken in Polish złoty. It has been valued at PLN 52.8 billion and is most preferred by those with loans in foreign currencies.

Hundreds of thousands of Polish families took out mortgages denominated in foreign currencies up until around 2010.

In later years, the removal of a fixed exchange rate against the euro by the Swiss central bank meant that monthly installments for many Poles ballooned almost overnight. (vb/pk)

Source: PAP

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