WARSAW: Poland’s banks are to take on 90% of the cost of converting FX mortgages into zloty in the final shape of the CHF mortgage relief program adopted by the lower house of parliament late Wednesday. A bill offering conversion of FX-mortgages to zloty underwent last-minute amendments during its third parliamentary reading late Wednesday, significantly increasing the likely cost to banks.
That bill now goes to the upper house which is entitled to suggest amendments for lower house review. The initial version of the bill authored by the governing party PO provided for splitting the FX loss evenly between bank and client at the total cost to banks estimated at around PLN 9.5 billion. According to a local banking sector analyst the banks will suffer costs estimated at PLN 15-16 billion on the latest version of the bill.
The change was introduced in the course of parliamentary works upon a motion from the left-wing opposition party SLD. The bill was passed on 281 majority, with 2 MPs against and 150 abstaining. The program is limited to borrowers with a loan-to-value ratio of over 80% and to apartments under 100 sqm or houses under 150 sqm. The size restriction does not apply to families with three or more children.
The initial draft had also restricted the program to borrowers who own only one apartment or house, but an amendment adopted Wednesday expanded the program to people who have other residential property but only if inherited after taking out a mortgage.