Polish banks would face a cost of 8.06 billion zlotys ($1.92 billion) due to the planned extension of a "payment holiday" scheme to help mortgage holders, according to a government analysis of the effects of the legislation published on Friday.

Prime Minister Mateusz Morawiecki said in September that the scheme, originally launched in 2022, would be extended through 2024 for people who meet new income criteria.

The original programme allowed mortgage holders whose monthly installments surged due to rising interest to skip a maximum of eight payments in 2022 and 2023, with no income criteria.

According to the government analysis this programme had cost banks 12.78 billion zlotys as of Sept. 30.

The extension of the programme has yet to be voted on by parliament.

The first session of a new parliamentary term is due on Nov. 13, with a coalition of pro-European Union parties poised to take power following Oct. 15 elections.

($1 = 4.1942 zlotys) (Reporting by Alan Charlish, Pawel Florkiewicz Editing by Tomasz Janowski)