Franc-denominated loans conversion to the złoty possible - KNF

Head of the Financial Supervision Authority (KNF) Andrzej Jakubiak has posited that converting franc-denominated mortgage loans with exchange rate from before the CHF appreciation could be possible. However, debtors would have to cover the difference between franc-denominated and złoty-denominated loan payments. “Debtors with foreign currency mortgages could have the right to convert their load to the złoty, even with the exchange rate from back when they took the loan, but would have to cover the difference between how much they have actually paid and the amount they would have paid had they taken the loans in the złoty,” Jakubiak told daily Dziennik Gazeta Prawna. He said that such a solution would be fair and in line with the constitution. He also said that such a solution would first require examination of how it would affect banks’ balance sheets. Last week, the Swiss National Bank announced it will no longer maintain the franc’s exchange rate against the euro above 1.20, causing an upheaval on global currency markets. The price of the Swiss franc soared to PLN 4.3 from PLN 3.5 last Wednesday, putting a strain on some 600,000 Poles with franc-denominated mortgages.