President Helps Swiss Franc Payers

Swiss Franc

Swiss Franc

Poland’s Financial Supervision Authority (KNF) has calculated the costs of the new draft act on financial aid to those citizens paying off mortgages in Swiss Francs, put forward at the behest of the President. The costs, it appears, are gigantic. The KNF believes that the financial consequences of the act would “not only upset the stability of some banks, but also, in a worst-case scenario, cause a financial crisis”. Aid for Franc-payers was one of Andrzej Duda’s key presidential campaign promises. The Office of the President has prevaricated for a long while in presenting the draft act, putting it forward as late as mid-January. Despite claims that fees for Swiss Franc mortgage lenders would be converted into a “fair” exchange rate, the draft did not include any calculations of the financial consequences thereof. Members of the Office of the President asked the KNF to prepare the appropriate calculations. It appears, however, that the KNF’s opinion of the act is crushing. According to the KNF: “there is a group of banks for which the deficit in their own capital is significant; this would decrease even more sharply after the mortgage restructuring process, below safety levels”. What is more, we have to be aware and open to the periodic market disturbances that never fail to appear, which, on top of this restructuring process, would significantly weaken the Polish złoty. The Office of the President is currently analysing the expert opinion of the KNF.


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