Prague donates three million crowns to People in Need so that people in foreclosures have the principal to pay
Press conference after donation approval. On the left are deputies Ondřej Prokop (ANO), Alexandra Udženija (ODS) and mayor Zdeněk Hřib (Pirates). Photo: Jan Puci
Today, the Prague council approved the amount of three million crowns for the non-profit organization People in Need. The company will use these funds to help people who want to take advantage of the Gracious Summer II event, but for various reasons, such as rising inflation or higher energy costs, cannot afford to pay the principal.
Thousands of people who went into foreclosure due to unpaid fees, fines or rents against the Prague municipality, its municipal organizations or municipal districts, this year from September 1 to November 30 have the opportunity to pay a much smaller debt thanks to the so-called Summer of Grace II.
“The problem that people are going to have now with the option to pay off the principal and end foreclosure is that a lot of people won’t have the principal to pay because of higher housing and energy costs. That’s why we decided to make a donation to People in Need, which helps with the processing of the application to the executor, so that he can help borrowers who are in a difficult social situation with the repayment of the principal. I believe that thanks to this, as many people as possible will be able to achieve debt relief,” said Prague Councilor for Legislation Hana Kordová Marvanová (for STAN).
According to her, the donation from the capital, through the SOS Milostivé leto collection, will be used to cover security for Prague residents who want to get rid of their debts, but cannot currently afford to make a one-time payment.
“We chose this form of helping the people of Prague through People in Need because the organization already has the tools to help those who need it. If Prague were to create its own tool, it would take an unnecessarily long time. The most important thing now is to get as many debtors out of the long-term debt of the Summer of Mercy II as possible. In the current economic situation, many people cannot afford to make a one-time start-up, which can reach tens of thousands of crowns. But it is also in Prague’s interest to liberate from this trap those citizens who cannot afford it due to a lack of available funds,” added Prague representative and one of the authors of the amendment to the law, Patrik Nacher (ANO).
“, when last year Prague was the first larger municipality to vehemently participate in the Gracious Summer event, the city goes even further. He will actively write to all borrowers who owe rent, and at the same time contribute to our fundraiser to help people in need who cannot even pay the principal amount owed. It’s a chance to solve years-old foreclosures with extreme accessories,” said Daniel Hůle, head of the Debt Counseling Program of People in Need.
The Gracious Summer II lasts from September 1, 2022 to November 30, 2022. Prague launched an information campaign for the event, among other things, in means of transport, in the media and in other places of the metropolis. Borrowers within the framework of the Gracious Summer II event need to pay the principal of the debt, i.e. the original unpaid amount, and the executor’s fee, which is set at 1,815 crowns including VAT, by the end of November this year.
“On the contrary, it is no longer necessary to pay all penalties, late interest, penalties and other costs. These will be forgiven during the Summer of Mercy. All you have to do is send a registered letter to the executor, in which you ask for a calculation of the outstanding principal amount and at the same time inform him that you are using the Gracious Summer campaign,” informed the spokesperson of the municipality, Vít Hofman.
According to him, the promotion only applies to foreclosures started before October 28, 2021. People can use the toll-free number 800 100 000 to provide details.