FX mortgage relief bill approved by the government

The government has approved the presidential bill aimed to help those with FX mortgages (mostly in Swiss Francs) and the appropriate parliamentary commission will continue working on it in late February or early March. “We positively assess the draft law, aimed at developing a mechanism for providing assistance to borrowers who are in a difficult financial situation, irrespective of the currency of the loan granted,” the statement on the government’s website said. However, according to Law and Justice (PiS) lawmaker from the public finance committee some tax legislation tweaks will be needed. The bill proposes to expand the current fund set up to support those with problems in paying off their mortgages and setting up a new one for restructuring FX mortgages. Establishing the new fund will cost lenders up to PLN 3.2 billion annually, according to the calculations. The potential monthly support will be increased from PLN 1,500 to PLN 2,000, extending the support period from 18 to 36 months and repayment period from 8 to 12 years. Currently, the funds accumulated in the existing borrower support fund amount to PLN 600 million. Subsequent contributions will not exceed 1 percent of the overdue loan portfolio's value quarterly.