PM says over 500,000 borrowers took credit vacation and urges banks to follow the rules

"In the first two days, over 500,000 families, over 500,000 borrowers took part," Morawiecki said at a press conference on Tuesday. According to Credit Information Bureau (BIK), there are nearly 3.5 million mortgage borrowers in Poland.

The prime minister also cautioned that banks which fail to observe the regulations regarding credit vacations would face penalties.

"All attempts to restrict this instrument will be punished... All practices like convoluted bureaucratic procedures, threatening with decreased credit ratings are unbecoming, out of order. I have ordered our financial merkets regulators and the UOKiK (Office of Competition and Consumer Protection) to be especially vigilant regarding such practices," he said.

Morawiecki assured that Polish banking sector was set on "very strong foundations" and that it was not facing any dangers. "I'm certain about it," he said, adding that Polish banks would end 2022 with high revenues.

Borrowers can file requrests to take a credit vacation since Friday, July 29.

Mortgage borrowers can file requests for credit vacations starting August 2022, according to the following scheme:

- from August 1, 2022, to September 30, 2022 - two months;

- from October 1, 2022, to December 31, 2022 - two months;

- from January 1, 2023, to December 31, 2023 - one month per each quarter.

Mortgage borrowers who wish to take out credit vacations already starting August will have to file requests before the payment deadline in that month.

Furthermore, credit vacations are available for borrowers who took out their loans before July 1, 2022, and which end at least six months after said date. Borrowers can postpone payments of only one loan.

According to data collected by Polish Press Agency (PAP), GPW-listed (Warsaw Stock Exchange - edit.) banks estimated that an average of 67% of their clients would decide to take credit vacations and suspend their mortgage payments. The banks also estimated that the percentage of all clients considering postponement of monthly payments was between 50-90%. A total estimated cost for nine banks was 12-12.9 billoin zlotys.

Reserves earmarked for credit vacations will affect the banks' bottom lines for Q3 of this year.