The banks have to buy EUR1.2 billion using leu resources attracted for the conversion of the Swiss franc loans, Romania’s central bank says.
The conversion of the Swiss franc loans at the historical exchange rate, which caused heated debates at the beginning of 2015, once the franc reached a record high because of a decision of the Swiss National Bank, was back on the agenda this fall, with the bill close to the final voting by the Parliament.
“If incorporating the effects of the loan conversion and of the foreign currency position, two lenders would see their own funds rate drop below the minimum regulated level,” Romania’s central bank officials told ZF.
“If disregarding the effect of the foreign currency position, the conversion of the Swiss franc loans at the historical exchange rate would lead to a reduction in the total own fund rate to less than the minimum regulated level for one lender. The total number of lenders with the own fund rate below the minimum prudential level would be six.”
Romania’s central bank required all banks at the beginning of the financial crisis to increase their solvency ratio to 10%, above the 8% required by the EU. If solvency drops below 8%, a bank is regarded as insolvent.
The number of consumers with Swiss franc loans dropped to 51,334 by the end of July and the volume of such loans reached 5.7 billion lei (EUR1.3 billion), half the level of 2008. A number of 24,391 Swiss franc loans were converted and 9,137 were restructured in 2015 and the first eight months of 2016, according to central bank data. (EUR1=RON4.5059)
(English version by Loredana Fratila-Cristescu)