“Act frankowiczach threat to the financial stability of the state” – Wyborcza.biz

As pointed out, the law is a threat, among others, because it treats unevenly borrowers depending on the currency debt, resulting in lower revenues from corporate income tax and will reduce the lending banks (bankers say that even 160 billion zł).

Huge cost

According to Szczurek that conversion and redemption of loans could cost the state budget up to 3.5 billion zł in respect of corporation tax from banks and dividends.

– This will mean that the costs will be borne by all taxpayers – the minister added. The Committee calls for consideration of his position by the parliament in further work on the bill. According Szczurek adoption of the bill in its current form will result in subsequent years to limit lending to the economy by the banking sector, both for households and businesses. – This will result in a slowdown of economic growth and the destabilization of the banking sector in Poland – he said.

According to the minister conversion of loans into zloty will also have an impact on the decline of the Polish currency, further complicate the situation of the other borrowers of foreign currency, in including entrepreneurs outside the scope of the Act.

Act unconstitutional?

The finance minister also stressed that provisions of the Act in its current form cast doubt on the infringement of the constitutional principle of equality before the law and should be directed not only to frankowiczów, but also to debt in US dollars and other currencies. In his view the law in its current form does not respect this principle.

– In the opinion of KSF action of an aid they should be directed to borrowers in financial difficulty and those with low incomes who, due to adverse circumstances beyond their control. have problems with repayment of loans – noted Szczurek. In his opinion, the aid activities should also ensure equal treatment of borrowers.

Also the Polish National Bank expressed concern about the entry into force of the Act in its present form. In a letter sent Tuesday to the Senate public finances NBP estimated that bank losses following the possible entry into force of the Law on frankowiczach amount to approximately 21 billion zł, or “approx. 20 per cent. More than the gross profit of banks covered by the Act (ie. Holding a portfolio foreign currency housing loans) for the last 12 months. “

On the other hand, the Financial Supervision Commission estimated bank losses to almost 22 billion zł. According to the president of the PBA Christopher Pietraszkiewicz regarding the calculation of the Financial Supervision Authority. The impact of the Act on frankowiczach are underestimated; KNF did not include the costs to the economy and losses resulting from international disputes and the associated consequences of a decrease good reputation of the country.

A sudden change in the law

The Financial Stability Committee consists of: Minister of Finance, NBP governor, head of the Financial Supervision Commission and the President of the Bank Guarantee Fund. Act recently passed by the Sejm has now addressed the Senate at its meeting of 2-3 September.

The law on the restructuring of the mortgage loan was completely changed during parliamentary voting in early August. In the original version of the project by the PO conversion costs were to be split half and half on borrowers and banks. However, the deputies unexpectedly voted to fix the SLD, which is 90 per cent. these costs flips on banks.

Act in early September is to take the Senate, and by late August the Senate finance committee.