Mortgage lending in foreign currencies will be przewalutować – establish rules adopted 5.08. by the Sejm. One of the conditions is the criterion of the property. In the case of housing, it can not exceed 100, and in the case of a house – 150 sqm. The criterion does not apply to families with three or more children. The property must be either used for their own needs.
Under the new rules, mortgage conversion of foreign currency loans would naturally occur at the rate of preparing a contract restructuring. It has to rely on a calculation of the difference between the value of the loan after conversion, and the amount of debt, we would have at this point the borrower had in the past entered into an agreement with a bank for a loan in Polish zloty, not in foreign currency.
skeptical Polish Bank Association
Possible aid for frankowiczów – yes, but only if it is previously negotiated with the sector. Bankers have criticized provisions facilitating the conversion of loans frankowych by members of the Civic Platform.
According to the Polish Bank Association, any regulatory changes will affect directly the banks that are involved in foreign currency loans, and indirectly all customers. And each statutory interference is interference by unauthorized.
– I think that will happen as it was in Hungary, but about what I said at the meeting of the Parliamentary Committee on public finances. Orban’s government pushed through a strict law first in the Hungarian parliament, but the local Court found it unconstitutional, and came to its repeal. And only after the conclusion of the agreement between the government and representatives of banks operating in Hungary, and which defined the conditions for conversion of foreign currency loans to forint, only then was passed by the parliament of the second act, which sanctioned this agreement. And this is probably the only consistent with the constitutional way – says Jerzy guest Ones bubble, vice president of the PBA.
Unaware of the borrower is a myth?
However, there is a serious problem with frankowiczami, where loan repayment conditions have changed drastically, and who do not always probably know, on the consequences and credit risks to decide.
– This is a stereotype, the “black PR.” Especially in the pre-election period the patch was glued to the banking sector. It’s easier to accept because this kind of populist thesis of ignorance borrowers than rational argument. Everyone would do well to others, but reaching into someone else’s pocket. And this is not a good way – says Vice President bubble.
According to Dr. Andrew Kurnickiego, an expert in monetary policy, the head of the Department of Finance and Banking Lazarski, the situation is not the best both from the point of view of people who signed the so-called long-term contracts. households, but also from the point of view of the banks, or lenders. In late 2013 as many as 54 per cent. This loan agreements were loans in foreign currencies. So there were more than PLN.
– If we have our own currency, we have to take care of, among others, the central bank, then there is no reason to make our economic area foreign currency. Because it degenerates own currency – said Dr. Kurnicki on Polish Radio 24.
Do recommendation S actually work?
But it is not just populist thesis that person, even educated, but not engaged in economic topics, she had little knowledge about the risks associated with the loans frankowymi. A bank advisors say rather that foreign currency loans are less expensive that the payment is lower, and greater credit capacity.
– Those are false stereotypes. Since 2006, the Polish force recommendation because S, which obligated the bank to make a loan offer to the customer first zloty. And only when the customer in writing stated that refuses, does not accept such an offer is not interested in her at the same time made a comprehensive statement that he knows what is the exchange rate risk, it could only offer him a loan in francs. That is why I repeat that these are false stereotypes that have been verified by the courts – explains radio guest Ones.
He adds that anyone who makes a statement of intent, sign a contract, is responsible for its decision. – Signed a loan agreement was convinced of the rightness of their decision. It is often the fact that reading the agreement, we read only what is good for us.
swayed by desire for gain
According to Dr. Kurnickiego, Poland enabling mortgage borrowing in foreign currencies, mainly in Swiss francs, which is the theme of economic rationality was dictated by greed banking lobby and banking stakeholders in order to sell these loans in foreign currency, because they generate higher profitability.
– They were called. Spreads, the yields on loans Swiss. Then, the Swiss franc was almost the “0″ (interest rate) was plenty of it, it was cheap, and crediting institutions to short- and long-term lending on the basis of francs. As a result, the pay to banks providing these loans. And unfortunately, the Financial Supervision Authority has granted the fact that such liabilities in foreign currencies were taken out – says an expert from the University Łazarski.
He adds that such long-term loans in foreign currency should never enter into the economy, because This breaks up the system. Foreign exchange risk, ie the risk of incurring liabilities of various kinds of foreign currency loans is unlimited risk. – Ex. US banks never got permission to trade in the US other currencies, not to mention the loans in other currencies.
On the other hand, Jerzy Bank believes, this greed for both of the parties.
– Again customers of banks, guided by greed, which is a natural behavior – chose a formula for them the cheapest. It may be recalled that the interest rates on foreign currency loans was much lower than the zloty. Also installment paid by the customer was much lower. And for many years, so it claimed. What’s more, those who took credit in francs, even mocked those who took a PLN, claiming that they are suckers – says vice-president of the Polish Bank Association.
What solutions would like the banks?
The Sejm ended 5.08. Work on the law on aid to frankowiczów. With government assistance will benefit those persons whose flat surface does not exceed 100, and the house – 150 sqm. The opposition wanted to conversion at the rate of borrowing, and to the possibility of the loan had all debt in foreign currencies, which, however, has not gained the majority of votes. And what is the position of the Polish Banks Association?
– We can talk about supporting those who are in special need, on the principle of social solidarity. Agreement for we must perform, and everyone who is committed to their implementation, must keep this in mind other hand, there is a certain group of people in any population, which for reasons of chance, whether natural, such as loss of a job – can have serious problems handling their debts. And in such cases and banks, and the state should provide support to such people. But not all. Project Civic Platform, which in principle guided by just such interpretation was unfortunately “souped-up”. Expanded these requirements, even if the surface of the housing up to 100 sqm. (Previously it was 75 sqm.), And such apartments in Poland people live wealthy in money, the rich – notes Vice President Jerzy bubble.
The case of an American
Dr. Andrew Kurnicki like those of example, the recent mortgage crisis in the United States.
– The US government then somehow forced banks to restructure parts of the borrowers’ liabilities. Eg. Increased number of installments. But both the government and the central bank supervision were directed to not force the banking sector, eg. A complete write-offs of losses, on the contrary, it was loosened in the banking sector. This should also be in us, that these write-offs that might be, do not write off their losses as loans denominated in foreign currencies at once. So would not immediately written off asset prices at the market price, but were discounted at a price of maturity. This would be a relief for the Polish banking sector – suggests the expert.
In contrast, those theories that appear to completely write off these losses in the sector by restoring the agreements on the date of their conclusion – this would completely ruin the system. Polish banking sector, in addition to two banks, would then have to immediately write off approx. 30-40 percent. losses on the assets. So the assets would be less than liabilities.
– Equity would be zero, negative. And in a sector can not be zero equity, because then the responsibility of the management board and the supervisory board is bankruptcy. It is therefore a matter of accounting – adds Dr. Kurnicki.
Conversations and compromise is always included in the price
It is best when aid proposals are developed in direct talks borrower (groups) – the banks.
– From the top imposed solution can ruin the banking sector, and yet there have also in most of its own deposits. In contrast, only half-hearted solutions are problems for the future. What is needed is a system solution. Eg. Those banks that have problems with the loans frankowymi, do not pay dividends, the gain should constitute a reserve for potential customer claims and should be intended for capital growth – explains Dr. Kurnicki.
On the other hand too radical solutions to banks They may result primarily restricted lending for the sector of small and medium-sized enterprises, reduced consumption and purchase of housing, resulting in a tightening of lending. And that can be a big problem for economic development.
Christopher Rzyman, Grazyna Raszkowska, Dominik Olędzki, Margaret Byrska
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