Polish pm proposes 4 months of credit vacation for borrowers

Mateusz Morawiecki, the Polish prime minister, has unveiled a plan to help borrowers amid rising interest rates.

The proposals presented by Morawiecki at a press conference on Tuesday include four months of credit vacation in 2022 and 2023.

Morawiecki told reporters that they proposed measures that would bring 3 billion EUR 641 million PAP in benefits to Polish borrowers, which will be subject to a number of consultations, and we are talking about a credit vacation this and next year.

He said that there was a plan to increase the Borrowers Support Fund from 600 EUR 128 million to 2 billion EUR 427 million.

According to Morawiecki, the government wants to introduce the protective measures as soon as possible to help 2 million Polish households pay off loans.

He said that the measures were one of the cornerstones of the anti-Putin shield'' to combat Russia-induced inflation, which referred to the effects of Russia's war on Ukraine on the national economy.

Morawiecki also announced changes regarding WIBOR interest rates used for mortgages.

We will introduce mechanisms to help citizens pay off their loans through a lower benchmark. WIBOR will be replaced with a new rate. He said that the cost of this change will amount to around PLN 1 billion EUR 214 million and will be borne by the banking sector.

Morawiecki pledged to boost the profitability of savings and take measures that will cause a hike in interest rates on deposits.

I will present a plan that will increase the attractiveness of saving money - PAP by Poles in the coming days. He said that it would become profitable.

The savings products offered by the financial sector as well as the finance ministry will be included in the planned measures, according to Morawiecki.