During the summer of 2022, due to inflation and rising interest rates, the so-called “interest rate” was introduced. statutory credit vacations. An institution that constitutes a kind of “vacation” from mortgage payments, normalized in the Law of July 7, 2022. on crowdfunding for economic ventures and assistance to borrowers[1], provided for the possibility of suspending mortgage payments to consumers who meet conditions set by the legislature – it must be admitted: general and relatively easy to meet. However, what particularly drew attention in the context of this program, while at the same time repeatedly becoming the subject of criticism, was the almost completely open formula, consisting of almost unlimited support for all “PLN” borrowers (both those in good and worse financial situations) paying a mortgage[2]. Although the statutory credit vacation was to last until the end of 2023, being an exceptional regulation, there have been proposals to extend it for another 2024.

It should be emphasized, however, that the proposed regulation will introduce a different solution, involving the addition of an income criterion.

Recall: the previous formula has been the subject of criticism – not only because it assumed a “passing on” of costs to one side of the loan contract (banks), but also because of the weakening of the NBP’s monetary policy and the accompanying serious constitutional doubts (among others, objections in the context of the principles of proportionality, protection of property, equality before the law, or social market economy).

The draft, which is the subject of current legislative work, stipulates that the “new” statutory credit vacations will be available to those with an arithmetic average of more than 35% RdD (installment-to-income ratio[3]) for the last three months preceding the month of application. Also within the scope of noteworthy modifications to the loan vacation program is that in the first quarter of 2024, the opportunity to suspend loan repayment will only fall in March.

In addition, there will be an easing of borrowers’ access to another form of assistance in 2024. This is about assistance under the Borrower Support Fund for debt repayment, where currently the level of RhD reaching or exceeding 40% (rather than 50% as before) is sufficient to receive such assistance.

Do the critical voices we wrote about above remain relevant vis-à-vis the new formula for statutory credit vacations?

This time there is also controversy. First and foremost: the income criterion for credit vacations set at more than 35% seems arbitrary and relatively poorly justified. Moreover, if it is adopted, there will be, in practice, a “duplication” of forms of assistance[4](double preference for one and the same group of recipients). There are also criticisms of violations of fundamental principles guaranteed by the Constitution – the principle of proportionality, equality, or the aforementioned principle of a social market economy, which programmatically opposes state interventionism, adopting an ordoliberal vision of social and economic relations.

Summary

• Summarizing the discussed changes, one should consider whether the introduction of an income criterion within the framework of statutory credit vacations under the conditions described above was really an effective solution? Was this a proportionate intervention by the legislature? Hasn’t there been a double preference for the same group of recipients and a duplication of forms of assistance for borrowers? And thus, was the constitutional principle of equality not violated?
• Lawyers of Jabłoński Koźmiński Law Firm emphasize that the above doubts are most legitimate in the context of the introduced changes and require consideration on many levels, not only from the economic point of view, but also from the point of view of fundamental principles of the political system.
• Statutory credit vacations are just one of many legislative solutions accompanied by serious constitutional doubts – and the actual process of working on them deviates from the standards of good, rational lawmaking. Reliable assessment of the effects of regulations, search for compromise, weighing of interests, openness to the arguments of various stakeholders and the voice of experts, honest consultations and striving for the most effective and efficient solutions – these are the standards of the legislative process, which are unfortunately still insufficiently respected in Poland.

[1] Law of July 7, 2022. On crowdfunding for economic ventures and assistance to borrowers (Journal of Laws 2023, item 414, as amended).

[2] K. Kozminski, M. Jablonski, Legal environment of the banking sector in Poland. Degradation of legal status and its consequences, Warsaw 2023. Cf. Opinion of the Polish Bank Association dated May 25, 2022 for print No. 2269, s. 2 et seq.

[3] Means the summed income of all household members.

[4] https://biznes.interia.pl/gospodarka/news-wakacje-kredytowe-na-nowych-warunkach-oto-najbardziej-kontro,nId,7235789 (accessed January 19, 2024).