President's plan for holders of mortgage loans

President of Poland, Bronisław Komorowski, has posed that banks and the government should establish a mortgage loan restructure fund aimed at helping borrowers who have trouble paying back their debts. This is yet another proposition intended to solve the difficult situation of the holders of Swiss franc-denominated mortgages. On Monday, the head of the Financial Supervision Authority (KNF), Andrzej Jakubiak, stated that the debts should be converted to two złoty-denominated loans, with the excess value of the conversion to be covered evenly by the banks and the borrowers. According to the president's plan, the fund would help the troubled borrowers regardless of the currency of their mortgage loans. In the case of losing a job or an illness or any other random accident, the borrower would apply to the fund for a low interest rate loan. Once he is back on his feet, he would be obliged to pay back the sum he had obtained from the fund. In special cases, however, the debt could be canceled. The proposition would be valid for those, whose apartment's total area does not exceed 75 sqm, or 100 sqm in the case of a house. Additionally, if the borrower is not able to continue paying back the mortgage loan, he would be allowed to return the property to the fund, but still live there as a tenant. In the president's view, the banks and the government would contribute to the fund.