Polish lenders set up funds for franc-borrowers

This year, Polish banking is going to commit up to PLN 800 million to support mortgage borrowers.  Poland's Bank Association signed a declaration on Wednesday, according to which the Mortgage Restructurization Fund and internal stabilizing funds will be established, the media reported. The banks will jointly spend PLN 125 million to bring into life the restructurization fund. A lender will pay off 100 percent of a borrowers installments for one year, amounting to PLN 1,500. Other conditions will apply, such as low wage, natural disaster or loss of employment, reported Puls Biznesu. The stabilizing funds will be dedicated only to those borrowers with CHF denominated mortgages (if the exchange rate exceeds PLN 5). Their total budget is to reach PLN 300-600 million this year, and within 10 years, even PLN 3.5 billion. It is estimated that around 20 percent of franc-borrowers may be among beneficiaries of this program. The aid is in the form of a loan and is to be returned by the borrowers, according to Puls Biznesu. "This support is a solution that lenders may offer by themselves," Krzysztof Pietraszkiewicz, the head of  Poland's Bank Association said.