Ministry of Finance on FX mortgage loans draft bill

The Ministry of Finance has issued an opinion on a draft bill presented by the President, in which it says that the proposition is fair and banks may spread losses over time. The ministry also said the proposed mechanism allows the release of a part of LTV-related (loan-to-value) reserves. The presidential project envisages that  borrowers would gain the opportunity to convert their FX-denominated loans into złoty-denominated credits at "a fair rate," which stems from the comparison of the cost of the FX or FX-indexed loan to a PLN-denominated loan. Analysts expect that banks would suffer losses of up to PLN 30 billion if the bill comes into effect.