KNF: No large-scale FX loan conversions process before new law approved

Despite favorable CHF/PLN conditions, Financial Supervision Authority KNF doesn’t expect banks to sign FX mortgage conversion deals with clients, as lenders are waiting for new laws regulating it. “As a regulator, I would like the banks to voluntarily convince their clients [to covert FX loans], to prepare offers for them, but I think that until the bill is not processed chances that banks will massively strike deals with clients and convert these loans are slim,” KNF President Marek Chrzanowski said. The new law, currently in parliament, 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.