Poland’s PKO BP EGM votes for Swiss-franc settlement fund By Reuters


WARSAW (Reuters) – PKO BP (NYSE:) will arrange a 6.7 billion zloty ($1.77 billion) fund for overseas change mortgage settlements after shareholders of Poland’s largest financial institution backed the plan on Friday as a doable resolution to the issue of Swiss franc mortgages.

The possibilities of resolving instances via out-of-court settlements stay unsure, with many banks ready for a Polish Supreme Court docket sitting on Could 11 earlier than they determine whether or not to enroll to a settlement plan proposed by monetary regulator KNF.

1000’s of Polish debtors took out franc loans greater than a decade in the past to reap the benefits of low Swiss rates of interest however then confronted ballooning repayments when the zloty weakened sharply in opposition to the Swiss forex.

“The KNF’s proposal minimises the financial institution’s losses and utterly eliminates the forex danger on the shopper’s facet,” mentioned chief monetary officer Rafal Kozlowski.

“A settlement is at all times higher for the financial institution than a courtroom dispute, we keep away from authorized prices, it relieves the shopper of debt and offers (the financial institution) a tax protect.”

PKO BP is to date the one financial institution to have dedicated itself to the KNF scheme. Kozlowski mentioned that in response to a survey carried out by the financial institution two thirds of consumers could be prepared to just accept settlements beneath the KNF plan.

With many different banks ready for the Supreme Court docket ruling earlier than making a choice on the settlement plan, there had been hypothesis in Polish media that PKO BP shareholders would decide to place off the choice concerning the fund.

Nonetheless, a movement at Friday’s Extraordinary Basic Assembly (EGM) to adjourn proceedings till Could 21 didn’t get the 2 thirds majority wanted to cross.

Shareholders additionally accepted the administration board’s proposal to not vote on a 4.5 billion zloty share repurchase programme.

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