Poland to encourage settlements in foreign currency lending cases


WARSAW, Jan. 10 (Reuters) – Poland plans to encourage banks to offer foreign currency mortgage holders out-of-court settlements by lowering the risk weight on loans if lenders offer this option, according to a draft amendment published Monday.

The move would reduce the capital reserves that banks must hold to cover the risk associated with loan portfolios, encouraging them to come up with such regulations.

Thousands of Poles who took out loans in Swiss francs more than ten years ago to profit from falling interest rates found themselves in difficulty to cover the costs of their service when the value of the Swiss currency soared. sharply.

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Many have sued the banks for terms they believe to be unfair, creating a major risk for lenders.

“Due to the effectiveness of alternative dispute resolution (…) it is justified to create regulatory incentives for this type of process to cover a wide range of home loans in foreign currency,” the finance ministry said. , who moved the amendment, mentioned.

He added that the “widest possible involvement” of banks in offering settlements to their customers was important for financial stability.

The amendment proposes that the risk weight for foreign exchange loans be reduced from the current 150% to 50%, 75% or 100% depending on the level of the capital reserves involved.

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Reporting by Alan Charlish; Editing by Catherine Evans

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