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Krawczyk to jest to!

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UPDATE 1-Poland seeks to reassure on health of its financial institutions

WARSAW Nov 27 The Polish banking sector remains sound even with the expenses incurred from this week’s failure of SK Lender, the economic adviser to the country’s president stated on Friday.

Adviser Zdzislaw Sokal sought to reassure Poles and international traders about the overall health of loan providers right after they have been advised to pay out at the very least 1.three billion zlotys ($ 322 million) to cover the cost of the collapse of SK Lender.

These costs deal one more blow to banks’ margins soon after curiosity charges were reduce to historic lows and the new finance minister lifted his estimate of the revenues from a tax he plans to impose on loan companies.

“The Polish banking system is secure and steady,” Sokal instructed Reuters.

“The determination about stopping the bank action and submitting for bankruptcy was essential, but it does not pose a threat to the banking sector,” he additional.

Poland’s banking sector is 70 p.c international owned by firms this kind of as Santander, UniCredit, Commerzbank and ING.

The country’s monetary regulator this week made a decision to file for bankruptcy of the modest SK Bank, which is the twenty fifth rated financial institution by belongings in Poland.

Bank assure fund BFG requested banking institutions to contribute quickly to make confident SK Financial institution clients get their deposits again. As the fees would wipe out 50 % of Polish banking institutions fourth quarter profit, it dragged down shares.

There are more problems for the sector.

President Andrzej Duda is operating on a bill on the conversion of Swiss franc-denominated mortgages that perhaps may possibly value lenders 20-fifty billion zlotys.

More than half a million Poles took out home loans denominated in Swiss francs numerous many years ago to reward from reduced interest rates and some are now struggling with repayments right after the benefit of the franc surged in January. Other people are stuck in homes that are well worth much less than their home loans.

Sokal explained the president was prepared to go over regardless of whether the conversion ought to be carried out at the charge mortgages had been taken, sending a signal that Duda may soften his stance.

Conversion at the historical fee would be a lot more pricey for financial institutions since the franc almost doubled in price over the previous ten years in opposition to the zloty.

“The appropriate providers in the President’s business office are doing work on the issue of franc financial loans,” said Sokal.

“No one needs to scare traders and create a difficulty for the security of the fiscal sector. The venture will be analysed in every single regard,” he stated adding that he can not say how lengthy that will get. ($ one = four.0210 zlotys) (Reporting by Pawel Sobczak and Marcin Goclowski Editing by Keith Weir)