ARB representatives have reiterated an estimation of the central bank according to which converting Swiss franc loans into RON at the historical exchange rate would result in RON2.4billion (EUR0.5 billion) in costs for banks. At the same time, the capital adequacy ratio for two domestic banks would drop below the level that would allow them to continue functioning.
The CHF loan conversion bill is currently on the agenda of a parliamentary specialty committee.
According to a report by ING Bank Romania, such an initiative has the potential to generate significant EUR/RON buying interest and might also lead to higher money market rates.