WARSAW: Poland-based banks need to take the responsibility for solving the issue of Swiss franc mortgage loans as they were their primary beneficiaries and often failed to properly inform clients about risks, but the solution should not threaten the stability of the banking sector, President Andrzej Duda said in an interview for Reuters newswire.
“The responsibility lies with banks, because it was they who benefited from these loans,” Duda said. Banks make “huge profits” in Poland and often failed to properly inform clients about the risks of an FX-denominated mortgage loans, he said. The cost of a potential CHF mortgage issue solution should not be borne by the taxpayer, the president said. The state may support the process “through legislative activity,” he added.
At the same time, the stability of the banking sector must be maintained, so the solution to CHF mortgage issue needs to be “balanced” in order to support borrowers, but not endanger the financial system stability, Duda said.
The president may propose his own solution if the CHF mortgage relief legislation, currently debated in parliament, fails to help CHF borrowers sufficiently, Duda added. He would not comment on whether he would sign the bill or not.
Swiss franc mortgages became a hot political topic in Poland after the National Bank of Switzerland decided to discontinue the EUR/CHF 1.20 floor in mid-January, causing the Swiss franc to appreciate. This increased installments and outstanding debt on over 500,000 CHF-denominated mortgage loans Poles shouldered.
