WARSAW: Poland’s main opposition party Law and Justice (PiS) wants to extend the governing party proposed CHF mortgage relief to “practically all” FX mortgage borrowers, which would increase the total burden on the banking sector to some PLN 12-15 billion, PiS MP Pawel Szalamacha said in parliament on Tuesday.
“Our proposal first and foremost extends the pool of beneficiaries to almost all [FX mortgage borrowers],” Szalamacha said, estimating the cost of such a solution at PLN 12-15 billion. PiS also wants conversion at the FX rate of loan origination, another PiS MP Henryk Kowalczyk told reporters. “Our proposal stipulates conversion at the FX rate from the day of drawing the loan plus theoretical zloty interest for the period from drawing to conversion,” Kowalczyk said. The proposal was presented in the lower house during the debate on a bill by the governing party Civic Platform (PO).
PO’s bill enables conversion of FX mortgage loans at the current market rate and sharing the realized FX loss 50/50 between clients and banks. The cost for the banking sector was estimated at some PLN 9-9.5 billion. The solution is restricted in the first year to bank clients with an LtV of over 120%, allowing clients with 100 to 120% LtV to join in the following year and with over 80% LtV in the final two years. The bill also envisages other eligibility limitations such as a square meter cap.
