BNP Paribas SA to Compensate Clients for Swiss-Franc Mortgage Losses

BNP Paribas SA has agreed to provide €400-600 million in compensation to clients affected by Swiss-franc mortgages during the 2008-2009 financial crisis, following a ruling holding the Paris-based lender responsible for the damages.

BNP Paribas SA has reached an agreement to compensate clients who suffered financial losses due to Swiss-franc mortgages during the 2008-2009 financial crisis. The Paris-based lender has agreed to provide a total compensation amount ranging between €400 million ($440 million) and €600 million to affected clients, in response to a ruling last year that found the bank responsible for the damages incurred.

The agreement was reached with the customer association CLCV, with both parties issuing separate statements confirming the resolution. BNP Paribas Personal Finance unit stated, "An agreement has been found with the CLCV association to offer an amicable solution for clients who request it." It is estimated that approximately 4,400 clients could be eligible for compensation from the bank, as reported by CLCV in a separate statement.

The ruling in November by a Paris appeals court held BNP Paribas's consumer finance unit fully responsible for the financial losses suffered by a group of customers who had taken on loans denominated in Swiss francs but redeemable in euros. The clients experienced a significant increase in their repayments when the Swiss currency became a safe haven during the global credit crunch.

BNP Paribas SA has taken the necessary steps to address the financial hardships faced by its clients and has agreed to compensate those affected by the Swiss-franc mortgage crisis. This resolution reflects the bank's commitment to addressing the consequences of the 2008-2009 financial crisis and providing a fair and amicable solution for impacted clients.