Poland might boost FX-mortgage support at banks expense

Poland could increase benefits for FX-mortgage holders at the cost of higher premiums for banks, the chief of the Parliamentary commission Tadeusz Cymański said. According to him, the support for the poorest borrowers should be higher than currently planned PLN 72k to PLN 100-150k according to Cymański. Banks would bear the costs of the support. The Law and Justice (PiS) MP admitted that the issue of FX mortgages is complicated especially the FX conversion aspect, especially now that the CHF is getting weaker against PLN which means that soon FX-denominated loans could become more profitable again. The bill proposes to expand the current fund set up to support those with problems in paying off their mortgages and setting up a new one for restructuring FX mortgages. Establishing the new fund will cost lenders up to PLN 3.2 billion annually, according to the calculations. The potential monthly support will be increased from PLN 1,500 to PLN 2,000, extending the support period from 18 to 36 months and repayment period from 8 to 12 years. Currently, the funds accumulated in the existing borrower support fund amount to PLN 600 million. Subsequent contributions will not exceed 1 percent of the overdue loan portfolio's value quarterly.