Magierowski: CHF franc loans conversion split into stage

The CHF mortgage loan conversion bill has been divided into stage, 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 a one year time to see how some regulations that will be introduced in the financial markets, which will de facto force banks to reach settlements, to sign agreement with customers to convert the loans would 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 to the point in 2011, when a new law gave them rights to exchanges currency outside their lender bank. The conversion of CHF mortgage loans was one of the electoral promises of President Andrzej Duda.