The outgoing government’s mortgage moratorium programme may be extended in some form into 2024 by the three opposition parties that are on track to form a new government, an opposition MP has said.

Andrzej Domanski, an MP with the centrist Civic Coalition (KO) group and a co-author of the KO’s economic programme, told the private broadcaster Radio Zet on Friday that the measures should be revised due to changing market conditions, including the gradual reduction of interest rates.

In 2022, parliament passed a law allowing borrowers to temporarily suspend mortgage repayments for four months in 2022 and another four months in 2023.

According to Domanski, the moratorium would be possible to remain in force under an income criterion.

“I think the best criterion is the percentage of income allocated to loan repayment,” he said.

The MP went on to say that he “still sees room for another 25-50 basis-point cut in interest rates, but this decision will depend on the Monetary Policy Council,” Poland’s rate-setting body.

Domanski also suggested that the VAT rate on food should go back to 5 percent after a period of 0 percent rate that had been introduced by the government amid soaring inflation.

“The Polish system is based largely on VAT… if we want to finance necessary investments… we must have some sources of revenue and this 5 percent VAT is such revenue,” Domanski concluded.