Polish President Andrzej Duda signed a law on Thursday allowing borrowers to postpone loan instalments for several months.
“Loan holidays” are intended to give borrowers a moment of financial respite at a time of high inflation. The law also contains provisions extending the effect of the government’s anti-inflationary economic packages. It provides for the postponement of loan repayments for eight months between 2022 and 2023.
“The law is about all those who bought flats, built houses, took out mortgages and, faced with rising interest rates and high inflation, found themselves in a difficult situation,” he added.
The bill was backed by a large majority in parliament, with 445 of 460 votes in favour, said Duda.
Nevertheless, experts are sceptical as to whether the financial relief will have a positive effect in terms of combating overpricing.
“I do not expect much anti-inflationary effectiveness from the ‘loan holiday’ as a form of relief for all borrowers. Such projects may result in money, instead of being used to repay credit, to some extent going into market circulation, which would further fuel price increases,” Professor Elżbieta Mączyńska, honorary president of the Polish Economic Society and lecturer at the Warsaw School of Economics, told EURACTIV.pl in an interview.
She also emphasised that the government’s action on the issue of inflation is limited, as the fight against inflation is, according to Polish law, handled by the central bank – the National Bank of Poland. The government does not have adequate instruments to fight price increases efficiently and mainly uses tax policy.
“The most important thing is that the government’s anti-inflationary actions are consistent with those of the NBP,” the expert said.
Inflation in June was 15.6% in Poland.
