PZU won't convert CHF-denomianted mortgages in case it buys banks

Andrzej Klesyk, the CEO at Poland's largest insurer PZU, said that he "cannot imagine" the company would convert CHF-denominated mortgages if it buys some Polish lenders, as it means risk to the investor, the media reported. Klesyk refereed to the Polish financial watchdog KNF's opinion, which stated that it will not approve any transaction of a lender's acquisition which leads to transferring risk related to the conversion onto the buyer. In late May, PZU signed a preliminary deal to acquire over 25 percent of stake in Alior Bank. Klesyk said that the insurer "has to" buy from two to four Polish lenders. On Wednesday afternoon, Civic Platform (PO) presented its proposals for franc-borrowers who were harmed by the appreciation of the CHF after the Swiss National Bank decided to unpeg the currency, which assume that mortgage loans would be converted to złotys with the exchange rate of the CHF recorded on the day of the conversion and the costs of  such operations will be split between the borrowers and lenders.