The Polish Government to Prepare Subsidies for Borrowers

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The government is preparing to help with the repayment of loans to Poles with low income. This implies subsidies and the statutory limitation of margins that banks impose on loans. Due to Wednesday’s increase in interest rates by the Monetary Policy Council by one percentage point, the government is preparing an aid package for the lowest-earning borrowers. The government is considering two main elements.

The first is to be subsidies to loans for the lowest earners from the Borrowers Support Fund. From the fund, borrowers could obtain long-term low-interest loans for repayment of installments. It is also possible to make a non-returnable loan subsidy.

The second element is to limit credit margins for several months. Also, in the power circle, some believe that banks behave unfairly, and in a situation of war in Ukraine, rising inflation, and high-interest rates, they maximize profits at the expense of ordinary Poles.

On Wednesday, April 6, the Monetary Policy Council raised interest rates by 100 basis points. The effect will be an increase in loan installments and a significant difficulty in giving new loans. The purpose is to reduce the amount of money available on the market and stop inflation from rising to 10.9% in March.

The head of the NBP, Adam Glapiński, explaining the reason for the interest rate hike, said that the increase in loan installments should not surprise anyone, as it was predictable.

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