Andrzej Duda greenlighted the measure at a televised ceremony on Thursday after it was overwhelmingly approved by both houses of Poland's parliament.
Under the law, those with mortgage loans denominated in the Polish zloty currency and intended to meet their own housing needs, can apply for the postponement of four mortgage instalments this year and another four next year, at no additional cost, according to officials.
Moreover, banks are expected to inject an additional PLN 1.4 billion (EUR 290 million) this year into a special fund to help borrowers in distress.
In addition, the cost of mortgage loans will be calculated on the basis of a new, more customer-friendly, indicator to replace the Warsaw Interbank Offer Rate (WIBOR), officials have said.
Also under the law, some of the government’s measures to combat inflation will be prolonged for a further three months, until the end of October, Polish state news agency PAP reported.
These include reduced value-added tax (VAT) on fuels, from 23 to 8 percent; lowered 5 percent VAT on energy and heat; 0 percent VAT on gas; 0 percent VAT on food, fertiliser and selected means of agricultural production; lower excise duty on energy; exemption of energy for households from excise duty; and lower excise duty on selected engine fuels, the PAP news agency reported.
Inflation in Poland stood at 15.6 percent in year-on-year terms in June, the country’s Central Statistical Office (GUS) said in a flash estimate at the start of this month.
The Polish central bank’s Monetary Policy Council last Thursday raised key interest rates for the 10th consecutive time in an effort to tame surging consumer prices.
(gs)
Source: PAP, TVP Info