Press release of Narodowy Bank Polski on its involvement in the conversion of FX housing loans

With the public debate continuing on the banks’ plans regarding the conversion of foreign currency housing loans to zloty-denominated ones, Narodowy Bank Polski points out that a possible involvement of the central bank in the process may only take place after the required conditions defined by the NBP Management Board in its press release of 9 February 2021 have been met.

From the point of view of a possible involvement of NBP, the systemic nature of the operation is of critical importance, which means that a sufficiently large group of banks joins the initiative to ensure that the overwhelming part of the portfolio of FX housing loans in Poland will be subject to the conversion.

The remaining conditions related to the presentation by banks of binding plans of capital recovery, including that they refrain from dividends distribution and take cost saving measures, as well as eliminate legal doubts as regards relations with clients and obtain the shareholders’ approvals.

The NBP Management Board welcomes the banks’ initiative aimed at reducing the legal risk of FX housing loans. However, so far NBP has not received any information confirming the fulfilment of the conditions it formulated, which probably results from banks awaiting the decision of the Supreme Court on the subject of FX housing loans, which is expected on 25 March 2021.