According to Polish daily Parkiet, the Polish government has prepared a draft bill concerning subsidies for granting mortgage loans to lower-income people. The so-called social housing act is to be voted on by the Sejm on 31 January, while it is expected to be in force in July. Some PLN 40m has been dedicated from the 2006 state-budget as the ministry expects some 10,000 people to benefit this year. The subsidy would apply to PLN-denominated mortgages. The Polish government plans to finance as much as half of the reference rate (WIBOR) plus 20bp for the first 8 years of a mortgage. Bankers expect that a group of potential clients would broaden by 30-40%. The idea of subsidising PLN-mortgages comes after plans to introduce a cap for FX-lending. While this news is considered to be positive for banks that grant exclusively PLN-mortgage loans (Bank Pekao, BZ WBK, Bank ING), we do not expect any trading impact on the share prices today.