KNF gives Polish lenders deadline

Until March 11 Polish banks have time to make an approach to the KNF in order to present their proposals regarding Polish franc-borrowers and the plan introduced by the KNF's head, Andrzej Jakubiak. According to Jakubiak, Polish banking is divided, some of the lenders would like to approve his plan and some of them are against it. The banks may reject the plan, approve it or suggest their own till March 11. The Head of the Financial Supervision Authority (KNF), Andrzej Jakubiak presented a plan for franc-denominated mortgage loan conversion earlier this month. 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 the 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.