Poland could help banks to solve Swiss franc mortgage problem: finance ministry

Poland could help banks to solve Swiss franc mortgage problem: finance ministry

Reuters  | Oct 04, 2019 11:00

Poland could help banks to solve Swiss franc mortgage problem: finance ministry

WARSAW (Reuters) - Poland's central bank, financial sector supervision and finance ministry could help the nation's banks to overcome the problem of Swiss franc mortgages, Finance Minister Jerzy Kwiecinski said on Friday.

The European Union's (EU) top court on Thursday ruled in favour of Polish consumers who took out mortgages in Swiss francs, allowing them to ask courts to convert the loans into Poland's zloty currency or cancel the contracts.

Changing the terms of the loans, which had become prohibitively expensive after the Swiss franc jumped in value, means Polish banks will have to refund some customers.

"Support may concern some legislation that would allow banks to overcome this problem more smoothly," Kwiecinski told reporters, without revealing details nor saying if this concerns new or existing legislation.

Representatives of the central bank and the KNF financial watchdog were not immediately available for comment.

Kwiecinski also said that the EU court ruling will have strong consequences for banks. Lenders have said the cost could amount to 60 billion zloty (£12.34 billion).

Polish banks are regarded as well capitalized, given the strict domestic capital requirements. Analysts say the banks can brace for future losses by cutting back on dividends or on lending.

Share prices for banks with big Swiss franc-denominated mortgage portfolios recovered some previous losses on Friday, with PKO (WA:PKO) and Santander's Polish unit (WA:SPL1) both rising 1% while Millennium (WA:MILP) outperformed the pack with a 4.7% gain.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.