Currency call options are a weapon in banks’ hands

MAG
opublikowano: 2008-12-03 10:24

Warsaw (Puls Biznesu) – ‘They encouraged us to buy currency options and now they want us to pay’, desperate companies complain at “Puls Biznesu”. They want to negotiate with Millennium but they believe the bank’s demands are too high.

Currency call options issued by Polish companies raise strong emotions. Representatives of companies keep calling “PB” office. They complain that they want to negotiate with Bank Millennium how to solve the problem now that the Polish currency has dived. They admit they have made a mistake but complain that the bank threatens with closing the options too early.

“The bank’s aim is to limit risk for its clients and for itself. The rule is that the bank solves problems in cooperation with its clients. When the client does not cooperate, the contract is closed”, Wojciech Kaczorowski, Bank Millennium spokesman said.

Representatives of the banking sector claim that companies are to be blamed. They wanted to speculate with currency.

“They should have read contracts carefully and they shouldn’t have engaged in something they didn’t understand’, an anonymous director of one of big banks commented.

“The companies are to be blamed. They were too greedy. Those who bought such options, should be punished”, Piotr Kuczynski, Xelion chief analyst added.