March 24, 2017 / 4:01 PM / 9 months ago

FX loans biggest threat to Polish banks, central bank says

WARSAW, March 24 (Reuters) - Poland’s central bank said on Friday that foreign-currency loans remain the biggest risk for Polish banks.

On Friday, the Financial Stability Committee, which includes representatives of the central bank, finance ministry, bank guarantee fund, and regulator KNF, discussed the situation in the sector.

“Currency loans portfolio was recognized as the biggest threat to the financial sector’s stability,” the statement reads.

More than half a million Poles took out foreign-currency mortgages several years ago to benefit from low rates in Switzerland, but repayment of installment became more expensive as the Swiss franc almost doubled in its value against the Polish currency. (Reporting by Marcin Goclowski, editing by Larry King)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below