Swiss franc crisis remains. Banks-MFP to meet this week for new solutions

Romanian Ministry of Public Finances (MFP) comes with two solutions for Swiss franc loan holders in crisis situation which took off at the beginning of the week, after Swiss National Bank (SNB) ended on Thursday its three-year-old cap of 1.20 franc per euro and reduced the interest rate on sight deposits.

„A certain bank that accounts for a considerable share of the aggregate Swiss franc loans has a program of its own and will proceed to the conversion of the loans into euro or RON – depending on the customer’s request – and will then apply a discount to substantially reduce the rise of the Swiss franc or even fully offset it”, the Finance Minister Darius Valcov declared at the end of the Friday meeting with the leaders of the National Bank of Romania (BNR), at the central bank headquarters.

According to Valcov, loan rescheduling according to Ordinance No. 64 of July 2014 as a solution which would address some 51 percent of the situations; he added that the purpose of the normative act could be expanded to include as many as possible such debtors.

“We had a highly useful discussion at the BNR headquarters, and we will continue talks next week. We are trying to identify in the first place where we stand and then see what solutions we have at hand to address in the longer term the issue for as many as possible holders of Swiss franc loans,” Valcov said, adding that a precise analysis has shown that there are 75,412 such individual loan holders and six banks that account for more than 90 percent of the entire portfolio of such loans.

Fin Min also said to Antena 3 TV that imposing by law an exchange rate for the Swiss franc poses a risk. This week he will meet banks representatives to discuss and to find new solutions to soften the problems CHF loan holders deal with.

Following the Switzerland’s central bank decision, CHF official exchange rate increased 2.2 percent on Friday to RON 4.4228 /CHF, hitting a new high, whilst the euro advanced from RON 4.5034 to RON 4.5095, and the US dollar also reached a high at RON 3.8863.


Banks-MFP to meetBNRCHFcrisisexchange rateFin MinFinance Minister Darius Valcovnew highOrdinance No. 64 of July 2014solutionsSwiss francSwiss franc loan holdersSwiss National Bank
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