Financial stability not under threat
In response to the judgment of the Supreme Court of 15 February 2012, in a case involving the recalculation of a currency-linked loan, the Financial Supervisory Authority would like to make the following observation:
While it is clear that the Court's conclusion will have a negative impact on the system it will not do so to the extent of threatening financial stability. The extent of the impact could vary depending on the financial undertaking involved, and in some cases it could even be insignificant. It is not clear at this point, therefore, what the eventual impact of the judgment will be. It should be noted that the equity position of the commercial banks currently exceeds the requirements of the Financial Supervisory Authority by a wide margin.
The Financial Supervisory Authority will begin immediately the work of assessing the impact of the judgment on the financial position of individual financial undertakings. It is important to resolve any uncertainty regarding the precedent set by the judgment and its effect on the re-computation of currency-linked loans.