Government proposes mortgage relief package
Polish government has put forward a draft relief package for mortgage borrowers, aimed at supporting them in paying their monthly installments amid the increasing interest rates. "Today at the Council of Ministers we've proposed new solutions," Prime Minister Mateusz Morawiecki said on Tuesday, adding that the package would now be referred to public consultation.
"We are extending the anti-Putin shield ... by a mortgage relief package for borrowers," Morawiecki said.
Support for borrowers - proposed solutions
The head of the government explained that the proposed solutions included 4 months of mortgage payment holidays in 2022 and 2023, which would cost a total of 3 billion zlotys. The government also plans to increase the already exisiting Borrowers' Support Fund (FWK) from the current 600 million zlotys to 2 billion.
"We will also introduce mechanisms that will help people to pay their loans thanks to a lower reference rate. WIBOR will be replaced by a new rate - if the banking sector does not develop it itself, it will be an overnight POLONIA rate, calculated by the NBP, which is preferential even by 0.4 percentage point. This will allow to save approx. 1 billion zlotys, cost of which will be covered by the banks," the prime minister said.
Another solution pertains to changing deposit interest rates. "I will propose new solutions regarding saving. The finance sector should have offered these solutions to Poles," he said.
Morawiecki said that financial institutions that have been making huge profit due to higher interest rates, increased by the central bank, have not been sharing these benefits with the citizens. He called that situation "unacceptable".
Changes for borrowers. Finance minster explains
At the moment we are sending this project for wide consultation, because it's important for us that all stakeholders take part in this," Finance Minister Magdalena Rzeczkowska said.
"There are three pillars of solutions that are meant to help credit borrowers. They have been put together into one draft legislation, on a few pages of regulations. ...Proposals of WIBOR replacement were already there, now we are adding solutions pertaining to credit vacation and the Borrowers' Support Fund," she added.
Rzeczkowska explained that the credit vacation would simply extend the loan duration, but without any additional interest or payments.
The minister added that it would also be easier to apply for aid from the Borrowers' Support Fund.
Źródło: TVN24 News in English, TVN24 Biznes, PAP
Źródło zdjęcia głównego: Marcin Obara/PAP