On Tuesday, the government will consider a bill on credit holidays. It is assumed, among other things, that in the second quarter it will be possible to suspend two loan payments, and the threshold for using credit holidays will be set at PLN 1.2 million. Experts estimate that the new rules will reduce the number of people eligible to receive benefits by 80%.
At tomorrow’s meeting, the government is due to discuss a bill to extend the credit holiday. Finance Minister Andrzej Domański sent a letter on this matter, which shows what changes can be expected not only with regard to the credit holidays of the PiS government, but also with the original proposals of the new government.
Credit holidays in a new way
From the letter we learn, among other things, that “in the second quarter it will be possible to suspend two loan payments.” – The attached draft changes the specified periods during which the obligation to pay mortgage contributions will be suspended. Due to the need to continue the legislative process, it is proposed that this suspension last two months, from April 1, 2024 to June 30, 2024, and in the case of subsequent quarters – one month in each quarter – wrote the head of the Ministry of Finance.
The suspension was previously expected to last for one month, from 1 March 2024 to 31 March 2024, and for subsequent quarters, one month in each quarter.
The Minister of Finance proposes to set a threshold for the use of credit holidays in the amount of 1.2 million zlotys (previously it was proposed to be 2 million zlotys). – Setting this threshold at three times the average loan amount, on the one hand, will make it impossible to use the so-called credit holidays for people who do not need such support, and on the other hand, will take into account the prices of residential real estate in large cities – Domanski explains.
Credit holidays will come into force on April 1 this year. (previously assumed to be March 1), which, as the Minister of Finance emphasizes, should allow the legislative process to be completed, and the transitional rules included in the draft will provide creditors and Bank Gospodarstwa Krajowego time to adapt IT systems to the legal changes made.
An estimated 420,000 people will be covered by the credit holiday. loan agreements (subject to a contribution to income ratio of 35%). The maximum annual cost (assuming that the tool is used by 100 percent of eligible people) is approximately PLN 3.6 billion. It is expected that the cost of extending the credit holiday for the banking sector will be about PLN 2.5 billion.
“The criteria narrow the number of eligible individuals by 80 percent.”
Economist Rafal Mundri has calculated that the proposed credit holiday criteria would limit the number of people eligible for it by 80%. – However, Domański’s “Credit Holidays” are postponed: according to the new bill, they should be available from April 1 (currently from March 1), and the loan size criterion will be narrowed to 1.2 million zlotys. RdD 35% remains. The criteria narrows the number of eligible individuals by 80 percent – Mandry wrote on X (formerly Twitter).
Credit holidays were first introduced in July 2022. In both 2022 and 2023, borrowers can pause four home loan payments during the year. Previous rules did not contain any restrictions on the loan amount.
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