The Polish government to rejig financing of distressed borrowers' fund
April 21, 2017
Poland will rejig how banks support a state-managed mortgage borrowers relief fund to allow the fund to broaden its scope in FX mortgage relief, the Finance Ministry tells PAP.
A state-operated fund set up to help stressed borrowers could be split with a new break-off fund utilized to "support the process of voluntary restructuring of FX denominated or indexed loans," the Ministry said in a statement to PAP.
"Works are also underway on a new construction for the mechanism of fueling the fund" as it needs to be compatible with the new tasks, the ministry wrote. "Otherwise, it might occur that the means in the fund would not be sufficient to realize support assumed in the bill."
Works on an update to existing legislation is underway, the Ministry wrote.
Comments fit a series of recent policy signals. Poland's macro-prudential body KSF has called for amending the distressed borrowers' fund to utilize the funds more broadly, a deputy Minister of Finance indicated in early March. Development and Finance Minister Mateusz Morawiecki has recently said he would like banks to pay 3-4 times more to the fund to increase its value to several billion PLN.