WARSAW Oct 5 Poland's financial regulator KNF
said late on Tuesday that it had extended the deadline for
Austria's Raiffeisen Bank by two months to
November-end to agree the terms regarding the sale of its Polish
unit to a local listed company.
When Raiffeisen bought the bank, Raiffeisen Polbank
IPO-RBP.WA, in 2012 it agreed with the regulator to sell at
least a 15 percent stake by the end of June 2016 in an initial
public offering. Since then it decided to sell the bank because
it needed money.
Polish Alior Bank, controlled by state-run insurer
PZU, said last month that it entered into exclusive
talks with Raiffeisen over the purchase of its Polish demerged
core banking business.
On Tuesday, KNF said the transaction has to be finalised by
the end of June 2017.
The regulator expects Raiffeisen to notify the European
Central Bank about its intention to launch a unit in Poland that
would take over Polbank's mortgage portfolio.
Keeping the unit's Swiss franc-denominated loan portfolio
was one of the conditions under which KNF agreed that the bank
could be sold this year to a Warsaw-listed bank.
Raiffeisen Polbank has one of the biggest Swiss-franc loans
portfolios among the Polish lenders, which together with a
banking tax have hurt Raiffeisen's plans to sell the Polish
(Reporting by Agnieszka Barteczko; Editing by Subhranshu Sahu)