Investor relations

                                                               Ząbki, 12 July 2010

What can we expect of Recommendation T?

The so-called Recommendation T enters into force with the beginning of  August, which may decrease the creditworthiness of people determined to  finance the purchase with the aid of a mortgage. Borrowers have only less than a month to avoid financial restrictions introduced by the new law.

The recommendation T, adopted by the Financial Supervision Commission
in February in the current year, in its assumption intends to protect the interests of borrowers as well asbanks, which are protected from creditors who may not be able to pay off the debt incurred. The rules assume that the amount ofinstallments of all the bank's client creditscannot exceed 50% of the client's net income unless the income is higher than the average wage- in this case, the ratio of all liabilities of the client to one's income is 65%.

Such a change could somehow affectthe planned purchase of flat, but not to the extent that the clients would have to refrain from the purchase. People who could have affordedto buy a more expensive unit, may be forced to choose a cheaper offer. Our credit consultants have already prepared a simulation of potential changes in the creditworthiness in individual banks. I think this is a good time to see how the implementation of the recommendation will affect the planned purchase of the flat. The clients, who will report
to the sales offices of J.W. Construction,can rely on a professional assistance of our consultants- assure MałgorzataSzwarc – Sroka, the Director of the Economic Division of J.W. Construction Holding S.A.

The Recommendation T was adopted as a response to the credit policy of  banks, that in the boom period significantly decreased the requirements on creditworthiness and prolonged the crediting period. Its provisions are applied not only to grantmortgages but also consumer credits.