NBP: FX loans bill could cost double expected amount

The central bank NBP has published an analysis, according to which the refund of FX spreads for FX mortgage loan borrowers will be twice as pricey as the estimate included in the recently presented bill. "In the opinion of the NBP, the cost of implementing the bill for banks will be higher than estimated by authors," the NBP writes and "could be even two times higher" than an initial estimate of PLN 3.6 to 4 billion, NBP said. According to a draft bill announced on August 2, Poland will force banks to refund a portion of the FX spread. 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.