PO offers to split conversion costs between lenders and franc-borrowers

On Wednesday afternoon, Civic Platform (PO) presented its proposals for franc-borrowers who were harmed by the CHF appreciation by the Swiss National Bank, the Polish Press agency reported. They assume the possibility that mortgage loans would be converted to zlotys with the exchange rate of the CHF recorded on the day of the conversion. PO claims that the difference in the mortgage's costs should be split between the lender and the borrower. Conversion agreements would be signed by 2020. Those owning apartments up to 75 sqm, and houses up to 100 sqm, would be eligible, under the condition that the real estate is actively used by the borrower. Such limitations would not apply to families with three  or more children. During the first year of the program the first beneficiaries would be borrowers whose mortgage value exceeds the value of loan security by 120 percent. PO estimated that the cost born by lenders would amount to PLN 9-9.5 billion. In May, Poland's Bank Association signed the establishment of the Mortgage Restructurization Fund and internal stabilizing funds. Thus,  Polish banking will commit up to PLN 800 million to support mortgage borrowers this year.