KNF pushes for more relief for compliant banks in the FX mortgage bill

Financial Supervision Authority KNF wants to tweak the FX mortgage bill to offer authorities possibility of suspending contribution to FX restructuring fund for those banks that “significantly reduced the risk tied to the FX mortgage portfolio.” if the individual Council decided to suspend the collection of the contribution to the Conversion Fund, “The solution should encourage banks to conduct an efficient and effective execution of the loan conversion process,” KNF said, adding that the amount of unused funds transferred to a conversion fund in a given quarter should be credited towards the future payments of a given bank to the Support Fund. President’s Andrzej Duda plan aimed to help those with FX mortgages (mostly in Swiss Francs), 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.