Polish President Proposes Loan Conversion Law at `Fair' Rate
- Duda seeks to bring costs in line with local currency loans
- Decision follows parliament's approval of new bank asset levy
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Polish President Andrzej Duda proposed a law to determine a “fair” exchange rate when banks convert the equivalent of $42 billion of foreign-currency mortgages, a move that could cost lenders billions of zloty.
The draft law, which will be assessed by the banking regulator before being sent to parliament, would make banks accept repayments at a “fair” exchange rate if no agreement is reached voluntarily, presidential adviser Maciej Lopinski told reporters in Warsaw Friday. The cost for banks will be evaluated by the regulator, he said in Warsaw.