The year 2024 brings crucial changes for borrowers in Poland. The strategy of credit holidays, which has been a rescue for many families facing financial problems since 2022, will be terminated. In the article, we will give an overview of the deadlines for the benefit of the relief and what fresh solutions will replace the existing programme.
Credit Holidays: How Did They Work and Who Were They Supported?
In 2022 the government introduced a credit vacation mechanics in consequence to rising prices and mortgage credit costs. The main nonsubjective was to let borrowers to suspend their mortgage payments for a limited period of time, allowing them to temporarily mitigate their financial burden.
Terms of usage of credit holidays:
- Mortgage value limit: Maximum PLN 1.2 million.
- Credit in gold: The mortgage had to be drawn in Polish currency.
- Revenue: The debt rate had to be at least 30% of household income or the household had to have at least 3 children.
Despite opposition from banks that compensated for their losses through higher product and service charges, credit holidays have proved to be an effective support tool for many families.
Government Decides the End of Credit Holiday
The government announced that the credit vacation program would end at the end of 2024. According to banker.pl, Jurand Drop, Undersecretary of State in the legislature Committee on Budgets and Public Funds, confirmed that after 2024 there would no longer be a anticipation to benefit from specified relief.
Changes in 2024:
- Stricter criteria: Creditors will only be able to take credit holidays until the end of 2024, and the fresh rules introduce stricter criteria.
- Two suspension periods: The anticipation of suspending credit repayments will be available twice in 2024: from June to the end of August and from September to the end of the year.
Creditor Support Fund – fresh Form of Aid
In place of credit holidays, the government plans to launch the Creditor Support Fund (FWK). This fund aims to supply more flexible assistance to borrowers in financial difficulties.
Characteristics of the Creditors Support Fund:
- Feedback: The anticipation of receiving financial assistance, which should be repaid later.
- Support period: You can get assistance in payment of credit instalments for a maximum of 40 months.
- Amount of support: The maximum support is presently PLN 3 1000 per month.
- Repayment: The start of repayment is 2 years after the last payment.
The Fund aims to adapt the form of aid to the individual needs of borrowers, which gives greater flexibility compared to the existing scheme.
What Should Creditors Know?
The last months of credit holidays are the last chance to take advantage of the relief. Creditors should plan their activities and make appropriate proposals within the prescribed time to avoid unnecessary financial problems in the future.
- End date: Application for credit holidays by the end of 2024.
- Planning: Make certain you meet the current criteria and submit all required documents.
Continued here:
Credit vacation's over. We know what's next.
