Bank Pekao return in Polish hands? – Polish Radio

The basis of most interest loans frankowych is negative amounting to LIBOR minus 0.75 percent. Photo: Depositphotos

As the economist Paul Majtkowski, is good news for repay foreign currency loans.

Banks take into account the negative rate due to the decisions of the OCCP

But, that same bank’s decision is not surprising, because it reminds us, in front of the OCCP takes several procedures to take account of such an interest and they terminate or decisions, or voluntary consent, as in the case of Pekao SA, on the use of such interest.

And he adds that Pekao he decided on such a solution, as it may be feared that the regulator’s decision will mean paying penalties.

Banks already take into account the negative LIBOR .. .

̶ reminds at the same time, the bank already take into account the negative LIBOR.

He added that the base rates of most credit frankowych is negative LIBOR equal to minus 0, 75 percent. and if the margin is less than 0.75 per cent., the bank should the borrower to pay extra for it, that is a loan.

He explains that the most important thing is that the addition of dreams and negative interest rates, the result of this negative interest rate on the loan.

… but would not pay extra for credit

̶ Meanwhile, bankers are already at the beginning of the year taken into account the negative LIBOR, but did not want to agree to pay the extra to credit its customers – says Majtkowski.

as noted, the bankers explained that the fact that the loan is a type of contract in which the customer must pay for the opportunity to get the money, not the bank.

the Bank does not will pay the installment, but will reduce the capital repayment

Now, after the decision of the OCCP, banks must take into account the negative rate, but it does not mean as notes expert that pays its customers to the loan installment. Apply another method.

̶ After the decisions of the OCCP, the banks began to take into account the negative interest rates, but instead of subsidies, subtract capital loan, what would have to pay extra – says the expert.

̶ And this It means that within the next month the bank Pekao SA calculates each borrower who was entitled to a negative interest rate, this amount and subtract it from the capital, probably recognizing that this is a situation which made the installment repayment – says Majtkowski.

He added, perhaps thanks to the borrower in the next few months will not have to repay the loan installments. The lender should wait for a signal from the bank, as the matter wants to do.

The expert points out that with negative rates for loans frankowych we have almost 2.5 years and it is difficult to predict how long this situation will take a while.

Dominik Olędzki, jk