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    Aid fund for borrowers to be set up in Poland

    The Polish government plans to create a new PLN 3.5-billion (EUR 753-million) support fund for borrowers, to be financed by the banking sector, Mateusz Morawiecki, the prime minister, has announced.

    Morawiecki presented the plan for borrowers hit by rising interest rates during the European Economic Congress in Katowice, southern Poland, on Monday.

    He said the aid fund of PLN 3.5 billion would be set up as part of “a significant strengthening of the entire banking sector’s resilience.”

    “This will not be financed from the state budget, all the funds will come from the commercial banking sector, commercial bank profits,” Morawiecki added. 

    On April 6, the Monetary Policy Council (RPP), the Polish central bank’s rate-setting body, increased the reference interest rate by 100 basis points (bps) to 4.50 percent, in the seventh interest-rate hike in a row, in reaction to the rising inflation and the weakening national currency.

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