WARSAW Oct 13 Poland is unlikely to come up
with a more restrictive bill to help the owners of costly Swiss
franc mortgages after it softened loan conversion plans, due to
uncertainty in the banking sector, PAP news agency quoted the
country's prime minister as saying.
In August, Poland offered banks inducements to help its home
owners struggling with Swiss franc mortgages to switch them into
zlotys, in a step back from earlier proposals for a compulsory
"It seems that today there is not such a possibility to
adopt such a bill which the Swiss-franc community expects," PAP
quoted Beata Szydlo as saying in an interview to Radio Maryja on
"At the moment we need to look carefully at what is going on
in the financial markets. We have worrying signals when it comes
to Italian, German banks. We have to be prepared that some
crisis could happen, that further turbulence is possible," she
Szydlo also said she had discussed it with the central bank
governor and the head of the financial market watchdog.
More than half a million Poles took out Swiss franc loans to
benefit from low interest rates in Switzerland, but now face
much bigger repayments because the Swiss currency has doubled in
value against the zloty over the last few years.
This became a major issue during last year's presidential
election, with the winning conservative Andrzej Duda making a
promise to solve the problem a key element of his campaign.
Duda's proposal in January for legislation to force the
banks to convert the foreign currency loans at historical
exchange rates triggered a sell-off in bank stocks after
financial regulator KNF said it would cost the lenders some 67
billion zlotys ($17.5 billion).
($1 = 3.8193 zlotys)
(Reporting by Agnieszka Barteczko; Editing by Sunil Nair)