Poland's government has set out a draft bill extending a mortgage moratorium until the end of 2024, aimed at helping borrowers tackle high interest rates.

This is according to a statement by the Prime Minister's office published on Monday.

The current moratorium, which was implemented last year, permits mortgage holders to skip four monthly payments both in 2022 and 2023. The regulations currently in place are in force until the end of this year and don't include income criteria, The First News reports.

However, during Monday's announcement, the Prime Minister's Office said that the initiative will be prolonged until next year, but income criteria will be introduced this time around.

"It is proposed that the suspension of (loan - PAP) repayment on the terms applicable in 2023 would also be possible in 2024," according to a statement by the PM's Office on its website.

"However... it is proposed a limitation on the list of persons entitled to benefit from the suspension of loan repayment should be introduced. Under the draft, such a right will be available to borrowers if the capital amount of the loan granted was not higher than PLN 400,000 (€90,000)," the statement added.

In addition, if the capital amount of the loan granted exceeded PLN 400,000 but was less than PLN 800,000 (€180,000), the mortgage moratorium will also be available to borrowers whose capital and interest repayment costs surpass 50% of the average monthly income, the PM's Office went on to say.

In 2023, interest rates in Poland soared to 6.75% from close to zero only two years previously, The First News report adds. Last month, the country's central bank slashed rates to 6%, followed by another cut to 5.75% earlier in October.

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