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Poland

Law and regulation of Covid-19 loan moratoriums in Poland

Table of contents
  1.  Description of the legislation
    1.  Is there a moratorium on loans legislation implemented in your jurisdiction?
    2. If no: Are there any ongoing discussions regarding a potential introduction of such measures?
    3. What is the name of the relevant legislation (the “Relevant Act”)?
    4. What is the duration of the measures (period of moratorium)?
    5. Does the legislation provide for an extension of the period of moratorium?
    6. Is the moratorium mandatory, or can each borrower opt out should they wish to simply continue payments, or opt in if they want to be protected by the moratorium?
  2. Parties and agreements affected by the Relevant Act
    1. Is the moratorium available for both corporate and consumer loans?
    2. Who are the affected Lenders?
    3.  Does it make a difference whether loans are granted by a foreign entity and governed by foreign law?
  3. Impact on the loan agreements
    1.  Is there a cut-off date with respect to loan agreements to which the Relevant Act will apply (e.g. not applicable to loan agreements entered into after the cut-off date)?
    2.  Does the moratorium apply to principal only, or also to interest and/or fees?
    3. Will the maturity of the loan automatically be extended by the moratorium period?
    4.  Are repayments and interest which have become due and payable under the contract before the Relevant Act has come into force covered by the moratorium?
    5. Will lenders be able to terminate a loan due to an event of default other than non-payment (e.g. breach of financial covenants)?
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1. Description of the legislation

1.1 Is there a moratorium on loans legislation implemented in your jurisdiction?

No.

1.2 If no: Are there any ongoing discussions regarding a potential introduction of such measures?

On 31 March 2020, the President of the Republic of Poland signed a package of laws called the Anti-Crisis Shield (the “Anti-Crisis Shield”):

  • the Act of 31 March 2020 amending the Act on special solutions related to the prevention, counteraction and combating of COVID-19, other infectious diseases and crisis situations caused by them, and certain other laws
  • the Act of 31 March 2020 amending certain acts in the field of the health protection system related to the prevention, counteraction and combating of COVID-19
  • the Act of 31 March 2020 amending the Act on the system of development institutions.

The purpose of the new regulations is, among others, to limit the scale of adverse market effects resulting from the epidemic status in connection with SARS-CoV-2 virus infections.

The Anti-Crisis Shield does not provide for any credit payment moratorium. Currently, there is a new draft law being discussed (improving and supplementing the Anti-Crisis Shield). The draft law was published on 7 April 2020. It does not provide for any credit payment moratorium either. We are aware that simultaneously there are some initial works on more extensive regulation and the credit moratorium is one of the topics, but the details are still unknown.

1.3 What is the name of the relevant legislation (the “Relevant Act”)?

N/A

See point 1.1 above.

1.4 What is the duration of the measures (period of moratorium)?

N/A

See point 1.1 above.

1.5 Does the legislation provide for an extension of the period of moratorium?

N/A

See point 1.1 above.

1.6 Is the moratorium mandatory, or can each borrower opt out should they wish to simply continue payments, or opt in if they want to be protected by the moratorium?

N/A

See point 1.1 above.

2. Parties and agreements affected by the Relevant Act

2.1 Is the moratorium available for both corporate and consumer loans?

N/A

See point 1.1 above.

2.2 Who are the affected Lenders?

N/A

See point 1.1 above.

2.3 Does it make a difference whether loans are granted by a foreign entity and governed by foreign law?

N/A

See point 1.1 above.

3. Impact on the loan agreements

3.1 Is there a cut-off date with respect to loan agreements to which the Relevant Act will apply (e.g. not applicable to loan agreements entered into after the cut-off date)?

N/A

See point 1.1 above.

3.2 Does the moratorium apply to principal only, or also to interest and/or fees?

N/A

See point 1.1 above.

3.3 Will the maturity of the loan automatically be extended by the moratorium period?

N/A

See point 1.1 above.

3.4 Are repayments and interest which have become due and payable under the contract before the Relevant Act has come into force covered by the moratorium?

N/A

See point 1.1 above.

3.5 Will lenders be able to terminate a loan due to an event of default other than non-payment (e.g. breach of financial covenants)?

N/A

See point 1.1 above.

Authors

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Portrait ofMichał Mężykowski
Michał Mężykowski
Partner
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