Poland Mulls Helping Banks as EU Ruling on Swiss Loans Looms
- Bank stocks extend losses as EU verdict may trigger provisions
- Financial regulators monitoring situation, no decisions made
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Poland is considering ways to help banks if the European Union’s top court rules against them in a case regarding potentially abusive clauses in their foreign-currency mortgage agreements.
The EU tribunal is expected to rule on the issue as soon as next month, which investors fear could trigger a litany of domestic lawsuits by mortgage holders, force banks into large-scale provisions and, according to analysts at ING Bank Slaski SA, even weaken the zloty.