Presidential Swiss franc draft can lead to financial crisis - KNF
Financial effects of a so-called presidential Swiss franc bill "can not only shake the stability of particular banks and undermine trust in the banking sector but in the worst scenario can even lead to a financial crisis", the financial authority announced.
The Polish Financial Supervision Authority (KNF) on Tuesday published an opinion regarding the presidential draft law on FX loan restructuring that the authority had received on January 15.
According to the four scenarios presented by the KNF, Polish banks could be burdened with high costs reaching PLN 56.2 billion, PLN 67.2 billion, PLN 44.6 billion or PLN 66.9 billion, the last one being the most probable.
In the opinion of the KNF the draft "puts FX loan takers from the years 2007 and 2008 in a more privileged position".
KNF's calculations provide grounds for further talks on the final shape of the law on FX loans, the President's Office wrote in a statement later on Tuesday and stressed that its priority was "to help borrowers while maintaining the financial stability of the state and of the banking sector".
In mid-January the President's Office presented a draft on FX loans envisaging three possible FX mortgage restructuring mechanisms: voluntary restructuring in which loans would be re-denominated under agreements with banks, enforced restructuring involving a "just exchange rate" which would be calculated on an individual basis, and transferring the relevant real estate to lenders to free borrowers from their debt.
The draft was sent to the KNF which in February carried out a survey among 58 banks and foreign credit institutions and prepared an opinion on the basis of the survey's results. (PAP)
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