Polish pm proposes plan to help borrowers

Polish pm proposes plan to help borrowers

The Polish prime minister, Mateusz Morawiecki, unveiled his 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.

A credit vacation this and next year will bring PLN 3 billion EUR 641 mln PAP in benefits for Polish borrowers, according to Morawiecki, who proposed the measures that will be submitted for several days of consultations.

He said that the Borrowers Support Fund would be increased from 600 EUR 128 mln to 2 billion EUR 427 million.

According to Morawiecki, the government wants to introduce 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, referring 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 the change will amount to around PLN 1 billion EUR 214 million and will be borne by the banking sector.

Morawiecki promised a plan 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 measures will be applied to savings products offered by the financial sector as well as the finance ministry, according to Morawiecki.