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BNP Paribas' Polish unit books 48.8M zloty provision for loan fees reimbursement

BNP Paribas SA unit BNP Paribas Bank Polska SA set aside a 48.8 million Polish zloty provision for the proportional reimbursement of fees in case of early loan repayment.

The provision will be booked in the the third quarter of 2019, BNP Paribas Bank Polska said Oct. 21.

The bank made the provision following the September ruling of the Court of Justice of the European Union, which confirmed the right of Polish bank clients to a reduction in the total costs of a consumer loan in case of its early repayment.

The Polish Bank Association said earlier in October that local banks may have to return to clients more than 1 billion zlotys in fees linked to consumer loans that were repaid ahead of schedule. The association's deputy head Włodzimierz Kiciński told the news agency PAP that the reimbursement of loan fees is likely to be spread over time and that some banks will create additional provisions for this purpose.

As of Oct. 21, US$1 was equivalent to 3.83 Polish zlotys.