KNF’s plan for franc borrowers

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The Head of the Financial Supervision Authority (KNF), Andrzej Jakubiak presented a plan for franc-denominated mortgage loan conversion. It assumes that mortgage loans would be converted to two złoty-denominated debts. The first would be secured by the mortgaged property and would correspond to the value of the złoty-denominated loan on the day it was taken. The second, unsecured debt, would correspond to the difference between the first debt and excess value of conversion at current CHF rates. Half of the difference of the second debt would be paid by the borrower, while the second half would be canceled.

“Conversion would be voluntary. Both, banks and lenders would have to agree,” Jakubiak said. He also added that “both parties bear responsibility for the present situation.”

According to the head of KNF, such an operation would cost the banking sector as much as PLN 1.2 billion a year over 20-25 years. Jakubiak also said that he had already presented the proposition to PM Ewa Kopacz.

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