Poland Moves to Defuse $30 Billion Swiss-Loan Risk to Banks
- Regulator may help lenders convert franc mortgages into zloty
- Banks skeptical over terms, including no dividends or bonuses
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Poland’s central bank moved to resolve the biggest threat to the country’s financial industry, offering commercial lenders help in converting $30 billion of Swiss-franc loans into zloty.
The banks asked the monetary authority to step in after a multitude of lawsuits over the loans forced them into mounting provisions. But the stiff conditions attached to aid, which include halting dividends and shoring up capital, are already facing a pushback from the industry, meaning the deal may take time to hash out.