Magierowski: CHF franc loan conversion split into stages

The CHF mortgage loan conversion process has been divided into stages because the situation on the financial markets has changed, presidential spokesman Marek Magierowski told TVP Info. "It's the first stage of solving the problems of franc borrowers." "Now we give ourselves one year to see how some regulations that will be introduced on the financial markets, which will force banks to reach settlements and to sign agreements with customers to convert the loans will work," Magierowski said. Asked why the conversion is split into stages, he named Brexit and the Italian banks crisis as reasons. According to a draft bill announced on August 2, Poland will force banks to refund a portion of FX spread, a move which will cost banks around PLN 3.6-4 billion. The refunds will be limited to PLN 350,000 and will be calculated to allow banks to retain a 0.5 percent "fair" margin. Franc-borrowers will be eligible to get compensation up to the point in 2011, when a new law gave them rights to exchange currency outside their lender bank. The conversion of CHF mortgage loans was one of the electoral promises of President Andrzej Duda.