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Polish Banks Warned Of Backlash By Szczurek If Franc Plan Defied

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Polish Finance Minister Mateusz Szczurek is nudging banks to abide by a pain-sharing agreement to help borrowers with $35 billion in Swiss-franc home loans or face pressure for more sweeping measures that may inflict losses.

Banks should maintain the balance or “symmetry” in loan contracts, in which they bear interest-rate risks, while the client is exposed to currency swings. That includes “isolated” cases of borrowers who should now be paying negative interest on their loans after the Swiss National Bank last week lowered its target rate to minus 0.75 percent, he said.

“I strongly encourage banks at this stage not to break this symmetry,” Szczurek said in an interview Thursday in Davos, Switzerland. “Otherwise, the political pressure, the social pressure to change the model toward Serb, Croat or Hungarian solutions will be greater.”

Bank executives met with Szczurek, central bank Governor Marek Belka and financial regulators on Tuesday and agreed to ease the impact of a surging franc by passing on negative interest rates in Switzerland to mortgage holders. Polish measures stopped short of Hungarian Prime Minister Viktor Orban’s move last year to order banks to convert $14 billion of foreign-currency loans into forint.

A sign of distress in the Polish mortgage market?

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So buy a house with a mortgage and then the bank pays you.

That's what happened (is happening) on guaranteed below base rate loans in this country isn't it?

Somehow, this model of capitalism seems flawed.

This isn't capitalism, This is central bank / state fraud with the prime benfactors being close to both those entities..

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