WARSAW: The Polish banking sector could have to write off PLN 22 billion from their FX mortgage books as some 33% of CHF-mortgage borrowers would qualify for a relief program recently passed by the Sejm lower house of parliament, financial authority KNF said in an opinion for the Senate upper house.
Banks would be forced to write down PLN 21.9 billion in loans if the bill is approved by the parliament in the current shape, the KNF said of its accounting. Of that sum, write offs on loans granted in 2007-2008 at the most disadvantageous FX rates, would amount to PLN 18.2 billion.
Any additional payments made by clients (potentially to balance the value of installments paid to date in line with terms of the new bill) could decrease the eventual loss after write-downs by some PLN 1.4 billion.
