Banca Transilvania signs the first CHF to RON loan conversion contract with a Bancpost client

Newsroom 19/07/2018 | 05:49

Banca Transilvania launched the CHF loan conversion from Bancpost earlier this month. And in the first two weeks, bank representatives had meetings with 1,025 Bancpost customers, and the first conversion contract was signed on Wednesday.

32 percent of the borrowers agreed to change the CHF loans in RON or EUR loans, given that they would benefit from a 18 percent discount.

Banca Transilvania took over 2,250 CHF franc loans with Bancpost (bank that they acquired this spring for EUR 178 million) and even if the the merger of the two banks is not complete yet, so they continue to operate separately, the discussions continue. 

After submitting the offer, customers have 15 days to decide whether to accept the conversion. Expectations are that more than 75 percent of eligible customers will accept the conversion bid at the end of the campaign at a 18 percent discount applied to the current balance.

The CHF/RON or CHF/EUR conversion will be at the BNR exchange rate from the date of signing the documentation to the notary. When it acquired Volksbank in 2015, BT offered its customers a larger discount of 22.5 percent, but the CHF has declined in value to RON since then.

BT’s offer is not addressed to those who have been granted loans by Bancpost, but were subsequently divested, including to the Eurobank shareholder in Greece.

Credits in CHF were popular before the financial crisis, but the strong depreciation of RON has made the rates expressed in RON double, given that CHF has jumped from under RON 2 before 2009, to RON 4.4 in 2015 and to RON 4 these days.

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