Poland Rebukes Banks as S&P Warns on Swiss-Mortgage Risks
- Development minister says government not eager to help banks
- Cabinet has touted economic ‘miracle’ ahead of Oct. elections
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Poland’s government played down the risk of a European court ruling that looms over its banking industry and made clear it wasn’t about to help lenders who doled out mortgages in foreign currencies.
Rating company S&P sounded more concerned, warning that some banks with exposure to such loans may suffer losses as a result of mounting lawsuits, forcing them to shore up depleted capital buffers and hedge currency positions. All of this could weaken lending along with the outlook for the country’s $586 billion economy, S&P said.