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Poland Forces Banks to Help Borrowers Shoulder Rate Hikes Cost

  • Premier proposes payment freeze, replacing benchmark for loans
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Poland’s government rolled out a plan to help borrowers stung by a sharp rise in interest rates that shifts the cost of aid on banks and scraps a benchmark underpinning most of the mortgages in the $597 billion economy.

The latest attempt at state intervention sent the WIG-Bank Index of Warsaw-listed lenders to its biggest slump since the early days of the war in neighboring Ukraine. The government cut levies on everything from food to fuels last year to curb the highest inflation in two decades.