Understanding Poland's Retreat From Costly Swiss-Loan Fix
- Central bank seeks policy cooperation to avoid hurting lenders
- Banks face legislation on currency spreads, regulatory changes
Restored residential buildings stand beyond a cafe terrace in Warsaw.
Photographer: Piotr Malecki/BloombergThis article is for subscribers only.
Poland’s banks, regulators and lawmakers have been locked in a yearlong argument over how to unwind $42 billion in foreign-currency loans without destabilizing the economy.
Lenders want to focus their efforts on the neediest foreign-currency mortgage holders, while the financial watchdog is planning to tighten recommendations to persuade banks to voluntarily convert their loans into zloty.