Duda submits new bill on FX mortgages

President Andrzej Duda submitted his version of the bill aimed to help those with FX mortgages (mostly in Swiss Francs). It proposes to expand the current fund set up to support those with problems in paying off their mortgages and setting up a new one for restructuring FX mortgages. Establishing the new fund will cost lenders up to PLN 3.2 billion annually, according to the calculations. The potential monthly support will be increased from PLN 1,500 to PLN 2,000, extending the support period from 18 to 36 months and repayment period from 8 to 12 years. Currently, the funds accumulated in the existing borrower support fund amount to PLN 600 million. Subsequent contributions will not exceed 1 percent of the overdue loan portfolio's value quarterly. The draft is supported by both Financial Supervision Authority KNF and Poland’s Central Bank (NBP).  “The current bill constitutes a sensible compromise between realizing a social objective, i.e. lending support to borrowers, and avoiding the risk for the stability of the banking sector burdened by the costs of this support,” KNF said.