The statutory credit holidays are awaiting the decision of President Andrzej Duda. The decision on the act on helping borrowers will be made without undue delay, the head of the president’s office, Paweł Szrot, announced to the Polish Press Agency. As he informed, the Chancellery of the President of the Republic of Poland is waiting for the bill to be passed.
It is about the act on crowdfunding for business ventures and helping borrowers, prepared by the government, which is aimed at, inter alia, support for people who took out PLN mortgage loans. During the July meeting, the Monetary Policy Council decided to raise the main rate hike for the tenth time in a row interest rate – up to 6.50 percent. This is the highest level since August 2004. The WIBOR ratios, on which the amount of the loan installment depends, also go up.
On Thursday, the Sejm supported most of the Senate’s amendments to the law on credit holidays. In view of the emerging doubts, among others clarified that the right to credit holidays applies to all mortgage loan agreements in PLN, including those concluded before 2017. Now the act will go to the Chancellery of the President of the Republic of Poland.
Credit holidays – when is President Andrzej Duda’s decision?
The head of the president’s cabinet was asked by PAP when we can expect a settlement on the act on crowdfunding for economic ventures and assistance to borrowers. – We are waiting for the act to be handed over to us, then we will start legal analyzes – said Paweł Szrot and assured that the president would make a decision on the act “without undue delay”.
The minister did not want to reveal what the president is inclined to decide. He stressed, however, that it was not without significance for the head of state that the bill was supported in parliament by all political forces.
On the subject of statutory credit holidays, the president Andrzej Duda spoke on Tuesday at a meeting with the residents of Leipzig. As he said, he is a supporter of this solution. – Yes, because I believe that for many families it is a huge problem today and the few months when they will be able to default on their loan may be a rescue for them, especially when I hear from economists that they are probably counting In the coming weeks and months this inflation spiral will be stopped, he said.
Credit holidays – what are they?
The regulations provide for the possibility of the so-called credit holidays in 2022 and 2023. The borrower or borrowers (in the case of a loan with another person) are to be able to use this solution for two months in each of the last two quarters of 2022 and for a month in each quarter of 2023.
Credit holidays mean the suspension of the obligation to make payments to which the borrower is obliged under the concluded mortgage contract, which is not a foreign currency loan. The amount of the suspended installment that we will pay in the future will not be the same as it was supposed to be on the original date. Its amount will depend on the level of the WIBOR or other loan interest rate that will be applicable in the future.
The statutory credit holidays are to be available from August 1 this year. The borrower will have to submit an application for the suspension of loan repayment.
The premise to take advantage of the statutory credit holidays is to be one PLN mortgage for your own housing purpose. As we read in the act, credit holidays will apply “to contracts concluded before July 1, 2022, if the end of the loan period specified in these contracts falls after 6 months from that date”. This solution will not be available to holders of loans indexed or denominated in a currency other than the Polish currency.
Not only credit holidays
The act also includes solutions aimed at increasing the value of funds paid by banks to the Borrowers Support Fund. As a result, the Fund’s budget is to increase to over PLN 2 billion in 2022 and will be able to offer support to even more mortgage borrowers.
As announced by the government, a new loan interest rate is also to be introduced in place of WIBOR. At the same time, the act contains a solution in the event of inability to designate a substitute. The POLONIA reference rate is to be a reserve option. The change is planned from January 1, 2023.
Moreover, provisions aimed at extending the operation of anti-inflation shields until October 31 this year were introduced into the law.
Main photo source: PAP / EPA / TOMS KALNINS