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Financial system faces risks from new loan guarantees, central bank warns

October 4th, 2021

New legislation that introduces state housing loan guarantees poses a threat to the stability of Poland's financial system, the central bank has warned. On Friday, Poland's lower house adopted a bill introducing housing loan guarantees of up to PLN 100,000 (EUR 21,840) to be offered by the state via state bank BGK. According to NBP, the central bank, some of the measures proposed in the bill may intensify negative trends on the housing real estate market and in the financial system. In the longer term, this could potentially lead to a weakening of the financial system's stability, the NBP wrote.


PAP

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