Raiffeisen Bank’s sale of its Polish division will take longer than expected due to complications surrounding its Swiss franc denominated mortgages portfolio. Polish media outlets are speculating that the buyer is the country’s top insurer, PZU, which plans to create the fourth largest lender by assets in Poland. With assets of more than PLN 6bn, Raiffeisen has one of the biggest exposures to franc-denominated loans in Poland. Still, PZU is allegedly ready to pay more than the bank’s book value would suggest, according to market sources.
The Polish government has been pushing Polish banks to help cover the costs involved in converting distressed foreign currency loans into zloty loans. “Considering the measures now being negotiated, we anticipate some delay in the sale process. However, we remain committed to our plans to offload the Polish division,” said CEO of Raiffeisen Bank International Karl Sevelda.
