Poland’s Franc-Loan Legacy Topples Ailing Getin Noble Bank
- Eight banks, state fund to take over Getin assets, deposits
- Swiss franc mortgages to be carved out from the deal
This article is for subscribers only.
The legacy of Swiss-franc mortgage lending finally triggered the downfall of one of Poland’s lenders, with the ailing Getin Noble Bank SA forced to enter the country’s biggest-ever financial-sector restructuring.
The eight largest Polish banks and the state guarantee fund BFG will take over selected assets of the Warsaw-listed lender through a special vehicle and provide 10.3 billion zloty ($2.1 billion) toward the rescue, BFG said in a statement on Friday. The bank, which is controlled by financier Leszek Czarnecki, met its end after the foreign-currency loan business soured and management missteps failed to repair the damage.