Polish banks cannot count on a statutory solution to the problem of CHF loans

by   CIJ News iDesk III
2023-03-15   12:52

Banks cannot count on a statutory solution to the problem of CHF credits, the head of the Financial Supervision Commission (KNF) Jacek Jastrzebski said.

"Banks cannot count on a statutory solution [to the problem of franking credits] and base their strategy on that. Waiting for such a law should not give a sense of illusory comfort. I expect banks to take responsibility for managing the risk of foreign currency mortgages," Jastrzebski said during the Banking Forum.

He acknowledged that conceptual work on a statutory solution to the issue of franking credits should be underway, but banks should not base their actions on these expectations.

"I appeal to you not to look at the state," said the chairman of the KNF.

"I expect this problem to be further managed using those instruments already in the possession of the banks," he added.

He recalled that the best - applied - solution to the problem is, he proposed more than two years ago, the conclusion of settlements with CHF credit borrowers.

"I am glad that there is finally a consensus around this solution. However, the best time for settlements has been used on average," Jastrzebski said.

In an interview with Dziennik Gazeta Prawna published today, Jastrzębski admitted that the office is working on the assumptions for the draft law, as it wants to have them "for a black hour" so that, if a decision is made to implement the solution, it will be professionally and reliably prepared.

In light of the draft law being prepared, the newspaper explained, banks would be obliged to propose settlements and, as part of them, convert CHF loans into PLN as if the mortgage had been taken out in the domestic currency from the beginning. Customers who would not take advantage of this option and would prefer to stay with the foreign currency loan would repay it at the average rate in the National Bank of Poland (NBP).

Source: KNF and ISBnews