Polish president proposes more aid for Swiss franc mortgage-holders

Hundreds of thousands of Polish families took out foreign-currency mortgages up until around 2010.

The removal of a fixed exchange rate against the euro by the Swiss central bank meant that monthly instalments for many Poles ballooned almost overnight.

Duda has drawn up a reform bill to make it easier for those Poles to apply for aid, to make more aid available for longer, and to encourage banks to convert loans to the Polish currency.

Under the new bill, borrowers would be able to receive up to PLN 2,000 per month in support, up from PLN 1,500, over a period of 36 months, instead of 18.

An interest-free period would be extended from eight to 12 years, and part of the debt could be remitted under the new bill.

Meanwhile, banks which will allow currency conversions will be reimbursed the difference under the proposed changes.

Poland's central bank and the Polish Financial Supervision Authority (KNF) have welcomed the bill.

The central bank, the National Bank of Poland, said the laws currently in place were limited and only a small group of borrowers were entitled to support.

The central bank said the reform would mean “economic stability and ease of working out individual solutions”.

The KNF said: “The bill is a sensible compromise between achieving social goals … and avoiding threats to the bank sector”.

Head of the Polish Banks Association, Krzysztof Pietraszkiewicz, said the bill was complicated and required in-depth analysis, which he added would be ready next week.

The bill has been sent to the lower house of Polish parliament. (vb/pk)

Source: PAP, IAR