Credit Vacation 2024: Government Passes Project Law Extending Protection for Borrowers and Makes Changes to Borrower Support Fund 🏦📜

💡In short: Prime Minister Donald Tusk has announced key changes 📢 – the government has passed a bill to extend the credit vacation until the end of 2024. It’s a move of huge significance for millions of Poles whose financial situation has become challenging in the face of changing economic conditions.

The program aims to cover about 1.7 million loan agreements, with a total value of about PLN 268 billion. The prerequisite for taking advantage of the loan vacation is that the borrower has a loan taken out before July 1, 2022. Applications can be submitted to the borrower’s bank, either in person, via email or online banking. The bill amends two laws and is set to take effect on May 1, 2024. The proposed changes aim to protect borrowers in the face of high interest rates, especially those experiencing difficulties due to soaring installments.

Details of the new system

The draft provides for the expansion of a system that allows for the postponement of loan installments. “The idea is to support people who have lost their jobs and have difficulty repaying their loans for various reasons,” Tusk said.

In addition, the possibility of forgiving part of the debt has been introduced. “The state is ready to take over the obligation to pay loan installments for people in difficulty who apply for such assistance,” the prime minister explained.

Key points

  1. Expanding the System: The goal is to support people with credit repayment difficulties, especially those who have lost their jobs.
  2. Debt Relief: The ability to forgive a portion of debt for people in financial distress.
  3. Suspension of Repayments: Option to suspend installment payments for two months (May-June) and one month each quarter.
  4. Suspension Criteria: Suspension of repayments for loans up to PLN 1.2 million when the installment exceeds 30% of income.
  5. Support for Parents: Special emphasis on families with a minimum of three children.

Changes in the support amount

  • Raising the Maximum Support Value: From PLN 2,000 to PLN 3,000.
  • Extension of the Support Period: From 36 to 40 months.
  • Longer Payback Period: 200 installments instead of 144.
  • Loan for Repayment of Debt: Up to PLN 120,000.

Borrowers’ Support Fund

In addition, the government is proposing to increase the level of support provided by the Borrower Support Fund from the current maximum of PLN 1,500 to PLN 2,500. This increase reflects an increase in the average monthly loan payment.