Government may assist franc mortgage holders

"If the franc falls below PLN 4, the pressure for changes in regulations will be different," Deputy Prime Minister and Economy Minister Janusz Piechocinski, said at a news briefing Sunday.

"If it stays [at the current level] longer, then there will be a need to think about a rational support plan, not only because of the creditors, but also because of the banks' condition,” he was quoted by Reuters as saying.

The value of the franc shot up last week after the Swiss National Bank removed a cap which kept the currency fixed with the euro.

Bogusław Grabowski, a member of the PM’s Economic Council said that the problem will persist, and not only in Poland.

“Unfortunately, in the long term, this [high] exchange rate will continue, because shortly we will likely see a [case where] money is printed in the euro area,” Grabowski told RMF FM, adding that Poland, whose economy is closely linked to that in the euro zone will also be affected.

“If the banks do not come to an agreement, the state should compel them to help,” the economist said.

Finance Minister Mateusz Szczurek will be meeting members of the Polish banking community to discuss the issue om Tuesday. (rg)