Conversion of Swiss Franc loans into the Romanian currency could trigger EUR 1.28 billion losses

The conversion of Swiss Franc loans into the Romanian currency leu at a previous rate could generate losses worth EUR 1.28 billion. This represents 0.8% of Romania’s GDP. In addition, the conversion of all the foreign currency loans would trigger EUR 2.2 billion losses, namely 1.4% of GDP, reports local Mediafax. Mugur Isarescu, the Governor of the Romanian National Bank (BNR), presented a series of estimates on the conversion of loans, in a press conference on the effects of the Swiss Franc’s recent appreciation. Three or four banks could need significant capital injections if they converted loans at a previous exchange rate. In this case, banks could sue the state to recover their losses, Isarescu explained. editor@romania-insider.com