Poland crafting interest-free distressed homeowner loans at up to PLN 1500 monthly

Posted on 24/07/2015 · Posted in Poland

Poland is crafting its homeowner support system to offer interest free government loans to distressed mortgage borrowers as payment supports to the tune of up to PLN 1500 monthly, Finance Minister Mateusz Szczurek told reporters in Parliament.

“Within a defined framework for the size of the real estate, we foresee support in terms of up to PLN 1500 for two years,” Szczurek said.
The offer goes to homeowners with payments over 60% of income, negative equity on their home or who have recently lost their jobs. The offer is open to homeowners with either zloty or FX-denominated loans, he said.
The support payments are interest free and designed as a loan, not a straight subsidy. “That interest-free loan can be paid back over a long period after the support is finished,” Sazczurek said. The government could cancel the debt “in certain conditions,” but generally considers the money as a loan.
The support system would be financed from banks’ contributions to a fund supporting distressed borrowers, the minister said.
Such a bill “is currently being prepared at the Finance Ministry,” Szczurek said. Policy makers will have to more than rush. Parliament is just ahead of its summer break, while Poland has slated a general election for late October at which point the legislative slate is wiped clean.