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    Gov't passes new borrower support scheme

    The Polish government, on Tuesday, adopted a new support scheme for mortgage loan holders, the government reported on its website.

    When unveiling the programme in late April, Mateusz Morawiecki, the Polish prime minister, said it would force banks to contribute an extra PLN 1.4 billion (EUR 300 million) to an expanded borrower support fund in 2022, and PLN 2 billion (EUR 430 million) in 2023, with overall support possibly reaching even PLN 5 billion (EUR 1.07 billion).

    Banks are also facing PLN 2.2 billion (EUR 470 million) annually in deferred income from a new credit vacation scheme for 2022-2023.

    “The Council of Ministers has adopted a bill which foresees… an aid to credit-holders. It contains a package of changes for mortgage loan holders,” the Polish finance ministry wrote on Tuesday.

    Among its provisions, the programme includes credit repayment vacations for all borrowers with PLN loans, covering eight monthly instalments over two years. Also planned is the replacement of the WIBOR rate used to calculate loan repayment instalments, to thus lower the repayment burden for borrowers by about PLN 1 billion (EUR 210 million) annually.

    Also, the new scheme will expand an existing borrower support fund to over PLN 2 billion (EUR 430 million) in 2022; qualified loan holders will receive up to PLN 2,000 (EUR 429.6 over 36 months, and will be obliged to start repaying the loan at no interest once the last payout from the fund is made.

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