Plan on Swiss franc mortgages will cost banks around PLN 2.7 bln - Puls Biznesu

Poland's banks have put forward a plan to tackle the country's Swiss franc mortgage problem that would cost them less than 5 percent of the solution proposed by President Andrzej Duda, Puls Biznesu newspaper informed on Monday. According to Puls Biznesu, which quoted unidentified sources, the country's ZBP banking lobby and adviser EY have tabled an alternative plan under which loans would only be converted for the most indebted borrowers. "The loans would be converted at market rates and if, after the switch into zlotys, instalments were above 70 percent of income, the lender would bear the costs above that level. The plan, which includes a number of other conditions, will lead to the conversion of about 5-10 percent of Swiss franc loans and will cost banks around PLN 2.7 billion," the newspaper argued. Recently, the Credit Information Bureau (BIK) informed, that at the end of March, there were 907,600 debtors in Poland holding 534,900 CHF denominated mortgage loans, 3.4 percent of which struggle to pay monthly installments on time.