Poland Warns Banks of Orban-Style Fix If Franc Plan Flouted
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Polish Finance Minister Mateusz Szczurek is prodding banks to abide by a pain-sharing agreement to help borrowers with $35 billion in Swiss-franc home loans or face pressure for more sweeping measures that may inflict losses.
Banks should maintain the balance or “symmetry” in loan contracts, in which they bear interest-rate risks, while the client is exposed to currency swings. That includes “isolated” cases of borrowers who should now be paying negative interest on their loans after the Swiss National Bank last week lowered its Libor target rate to minus 0.75 percent, he said.