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Judgment of the CJEU – CHF loans. Appeal of the Entrepreneurship Council

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In connection with the judgment of the Court of Justice of the European Union (CJEU) on CHF loans, the Entrepreneurship Council notes with concern the possible negative impact of the decision on the entire economy and all taxpayers, entrepreneurs emphasized in the appeal.

“In connection with the judgment of the CJEU of June 15, C-520/21 in cases concerning foreign currency loans, the Entrepreneurship Council notes with concern the possible negative impact of the decision on the entire economy and all taxpayers, as banks absorbing losses related to this CJEU judgment will not be able to will be able to finance the development of the Polish economy at the current level in the near future.

Judgments of the CJEU – appeal of the Entrepreneurship Council

It was added that “banks will have to significantly increase the level of provisions for hard-to-recover loans, which means that funds that could be used for current financing of various projects in the economy will be frozen”.

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Entrepreneurs pointed out after the Polish Financial Supervision Authority that “the erosion of banks’ capital, which will take place in connection with this decision, will have a negative impact on the ability of banks to continue financing the housing needs of Polish households, as well as the entire economy.”

Read also: Borrowers can gain tens of thousands of zlotys. Calculations >>>

The issue of converting franc loans into zlotys

Therefore, the Entrepreneurship Council calls for a systemic, socially fair solution to the problem of foreign currency housing loans in the form of settlements with banks, the essence of which is the proposal of the Chairman of the KNF of December 2020, assuming the conversion of CHF loans into PLN on such terms that the CHF loan would be treated as if was a zloty loan from the beginning.

According to entrepreneurs, “from the point of view of the economy, settlements between customers and banks are the most attractive and rational alternative to costly and lengthy court proceedings involving the judiciary for years” and “are a cost-free and quick solution (a settlement can be concluded within one month) and completely removing the exchange rate risk from the contract.

“The Entrepreneurship Council supports actions aimed at concluding settlements publicly addressed by the Financial Stability Committee, the Office of the Polish Financial Supervision Authority, the Office of Competition and Consumer Protection and the Bank Guarantee Fund” – it was written in the appeal signed by: Marek Kłoczko, Polish Chamber of Commerce; Marek Kowalski Federation of Polish Entrepreneurs; Janusz Dziurzyński, Association of Business Service Leaders – ABSL; Maciej Witucki, Confederation Leviathan; Wojciech Kostrzewa, Polish Business Council; Rafał Dutkiewicz, Employers of Poland; Łukasz Bernatowicz, Employers’ Association, Business Center Club; Tadeusz Białek, Polish Bank Association; Jan Gogolewski, Polish Craft Association.

Judgments of the CJEU

The Court of Justice of the EU issued last week, two judgments in cases brought against banks by consumerswho took loans denominated in Swiss francs. The CJEU found that the bank has no right to demand compensation from the consumer that goes beyond the return of the capital paid out and that the courts may order an interim measure in the form of suspension of loan installments during the trial to determine the unfair nature of the contract terms.

Read more: What do the judgments of the CJEU mean for franchise holders? >>>

After the announcement of the judgment, the KNF Office announced in a communiqué that it expects the banks to take into account the CJEU ruling in their models of creating provisions for legal risk related to the portfolio of mortgage foreign currency loans and still expects the banks to take an active stance in the field of systemic solution to this problem in the form of offering settlements to clients.

According to the data of the Credit Information Bureau (BIK), the number of active CHF loans decreased by nearly 46.5 thousand in 2022, and the value of repayments decreased by over PLN 5.5 billion. However, there are more and more lawsuits in cases concerning loans in Swiss francs. According to experts, their number may increase even more after the CJEU judgment is favorable for borrowers.

Main photo source: Shutterstock



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