Over nine thousand foreclosures were stopped during the second round of the grace period, allowing debtors to get rid of debts with public institutions without paying interest, penalties, or court costs. Around CZK 370 million was forgiven. According to the Chamber of Executors, more than 946,000 executions could theoretically have been stopped.
In the course of the action, which lasted from the beginning of September to the end of November, the bailiffs managed to recover around CZK 120 million from debtors.
Compared to the first round of the mercy summer, which ran from October 2021 to January 2022, the average amount forgiven has at least increased from CZK 37,000 to CZK 43,000.
“Larger attachments usually have larger foreclosures with larger principal amounts, and whereas small foreclosures with smaller principal amounts and smaller attachments were already stopped for active debtors in the first grace period, now the larger ones have been added,” Jan Mlynarčík, president of the Chamber of Executors, described the reasons.
During the first grace period, pushed through by a group of MPs across the political spectrum, 52,000 foreclosures were stopped, with CZK 1.55 billion worth of accessories forgiven.
According to data from the Chamber of Executors, 4.1 million foreclosures were pending in the Czech Republic at the end of January. They faced 672,400 debtors, while about 166,000 people had ten or more execution proceedings simultaneously.
The Ministry of Labour and Social Affairs has announced that it would like to see another round of the grace period, which would apply to individuals, including sole traders and companies.