IPF shares in freefall on Poland plan to cap loan charges
Shares in emerging markets lender International Personal Finance (IPF) plunged by more than a third on Friday after Poland's Ministry of Justice published draft legislation that would cut the charges on personal loan agreements.
Financial Services
17,551.66
17:14 30/12/24
FTSE 250
20,404.55
17:14 30/12/24
FTSE 350
4,479.42
17:14 30/12/24
FTSE All-Share
4,437.14
16:55 30/12/24
International Personal Finance
131.50p
16:40 30/12/24
In a statement, IPF said was “reviewing the proposal to assess the extent to which the profitability of its Polish business would be affected by the proposed changes”.
The proposal reduces the flat level cap of 25% of loan value to 10% and cutting the annual cap to 10% from 30%.
IPF also noted that consumer credit legislation normally falls within the remit of the Ministry of Finance.
"We understand that the proposal will now be open to public consultation for 14 days and we will be contributing to this process. IPF is reviewing the proposal to assess the extent to which the profitability of its Polish business would be affected by the proposed changes, should they be implemented, and is also examining appropriate mitigation strategies to minimise any potential impacts," the company said.
Shares in IPF were down 41% to 167.6p at 1521 GMT.