Fitch: Polish president’s mortgage bill should have little impact on bank ratings
PR dla Zagranicy
The profits of Poland’s banking sector could take a hit from a new plan to reduce exposure to foreign-currency mortgages, but this should have little impact on ratings for most banks, the Fitch ratings agency has said.
Source: pixabay.com/AlexanderStein/CC0 Creative Commons
Polish President Andrzej Duda has suggested more aid for people with home loans in Swiss francs, following pledges to support those whose mortgage repayments ballooned after a fixed exchange rate was removed.
Duda has drawn up a reform bill to make it easier to apply for aid, to make more aid available for longer, and to encourage banks to convert loans to the Polish currency.
The bill has been sent to the lower house of Polish parliament.
Fitch said in a statement that Duda’s move should have little impact on ratings for most banks “as the process will be spread over time and slowed if necessary to safeguard banking sector stability.”
The agency added the plan would hit banks' profitability, costing the sector up to PLN 3 billion (about EUR 700 million) a year if the maximum quarterly contribution rate, 0.5% of banks' foreign-currency mortgage exposure, is applied.
“But we believe the Polish Financial Stability Committee would set a lower contribution rate given the capital pressure on some banks and its responsibility for banking sector stability,” Fitch said.
Hundreds of thousands of Polish families took out foreign-currency mortgages up until around 2010.
The removal of a fixed exchange rate against the euro by the Swiss central bank meant that monthly instalments for many Poles ballooned almost overnight. (pk)