By Patryk Wasilewski
WARSAW--Poland's economy ministry on Wednesday proposed taking
steps to ease the burden on borrowers with Swiss franc-linked
loans, including converting them to zlotys at the current exchange
rate.
Comments from Prime Minister Ewa Kopacz earlier this week
suggested the Polish government was ready to consider exposing
banks to some losses on foreign-currency loans. The safe-haven
Alpine currency soared this month after the Swiss National Bank
removed a cap against the euro, a move that boosted the franc
against the zloty, sharply increasing private debt owned by more
than half a million Polish borrowers.
The economy ministry fell short of expectations that it would
consider allowing borrowers to convert into the zloty at a
historical, lower exchange rate. Instead, it proposed solutions
already on the table and that banks had agreed to.
Banks will account for negative London interbank offered rates,
which will mean lower monthly payments for borrowers, said Economy
Minister Janusz Piechocinski.
Borrowers will also have the option of converting loans at the
central bank's official current exchange rate without fees, as well
as a three-year freeze on capital payments. The government will
also ask banks not to seek additional collateral or guarantees from
borrowers when the value of the loan exceeds the value of the asset
it financed.
Polish bank stocks soared on the news. Poland's top bank by
assets, PKO Bank Polski SA (PKO.WA), was 2.8% higher at around 1130
GMT, and Bank Zachodni WBK SA (BZW.WA) was 1.11% higher,
outperforming the blue-chip WIG20 index, which was up 0.3%.
Getin Bank SA (GTN.WA), with a relatively high portfolio of
Swiss franc loans, was 3.2% higher.
-Write to Patryk Wasilewski at patryk.wasilewski@wsj.com