Sale of Raiffeisen Polbank may be delayed

The sale of the Polish branch of Raiffeisen Bank International (RBI), Raiffeisen Polbank, may be delayed due to complications regarding its CHF-denominated mortgages, Reuters reported, citing a company statement. "Considering the measures being discussed regarding Swiss franc loans, a certain delay cannot be ruled out. But that does not change our intention to sell," Karl Sevelda, the CEO at RBI, pointed out in a statement. The negotiations with state-controlled Polish insurer PZU, which has offered a price below Polbank's book value,  are rumored to have been suspended, based on a few anonymous sources. "The talks are on hold," a market source told Reuters earlier on Wednesday. "Raiffeisen saw little interest and sees huge problems with the FX mortgage portfolio, so the only option left on the table right now is a possible IPO next year," said another one. RBI needs to sell its Polish branch, Raiffeisen Polbank, which has a book value of PLN 6 billion, so that it will be able to "shrink its balance sheet and hit a core capital ratio of 12 percent by end-2017", the agency pointed out.