During the Monday press conference in the Sejm, Confederate politicians, including Deputy Marshal Krzysztof Bosak, expressed their serious concerns about the government's Start-up programme, which aims to introduce a zero rate mortgage credit. Bosak warned that this programme could contribute to the further increase in housing prices, which is simply a concern shared by property marketplace observers, analysts, investors and even the National Bank of Poland and the Ministry of Finance.
The Start surviving Programme is controversial
Bosak stressed that despite the promises of the Citizens' Platform and preparations for the implementation of this project, there is inactive a deficiency of clarity about its final shape. "9 months after taking power and starting preparations for this promise, we inactive do not know precisely what form this task will have," Bosak said. He added that this uncertainty led to an increase in inflation expectations and a emergence in housing prices.
Negative effects of “Safe Credit 2%”
Bosak besides recalled the negative consequences of the “Safe Credit 2%” programme introduced by Minister Waldemar Buda and the government of Mateusz Morawiecki. He pointed out that the programme caused two-digit increases in real property prices in large cities in Poland. “In the Tricity, the property went up 27%, in Krakow by 24%, in Warsaw by 23%,” Bosak pointed out, adding that it was a disaster for people planning to buy their own apartment.
Credits and insufficient supply of housing
Bosak pointed out the problem of highest-interest loans in Europe, which he felt would not be solved by the fresh law. The program assumes only 3 tranches of loans, which are to cost PLN 20 billion, and taxpayers will gotta cover these costs for the next decade. “The real property market, unfortunately, has specified a specificity that prices erstwhile raised, in general the phenomenon of price viscosity – who is curious in economics, knows what we are talking about – prices are reluctant to fall at all,” Bosak said.
Problems with lending to foreigners
The leader of the Confederation besides pointed out that loans from both the erstwhile and the current programme are available to foreigners. “We know that two-thirds of the foreigners who have entered into contracts subsidised by the Government of PiS were Ukrainians,” said Bosak, adding that these subsidies should not apply to foreigners due to the fact that they increase property prices.
External programme analysis
Faced with these controversy, the Confederate plans to ask the Central Anti-corruption Office to analyse the case to see if the improvement manufacture and the banking sector had unauthorized contacts with the government. Roman Łazarski, another typical of the Confederacy, stressed that this programme guarantees the profits to banks at the expense of average citizens. “This is simply a warrant of remuneration for banks, so this business is clear here,” Łazarski said.
In conclusion, Confederate politicians express serious doubts about the government's Start-up surviving Programme, fearing that it can lead to an increase in property prices and be beneficial primarily to the banking and improvement sector, alternatively than to average citizens.
Read more:
The Confederacy shall notify the CBA of irregularities at the start-up threshold
