The Steering Committee of the National Working Group (KS NGR) on benchmarks intends at one of its upcoming meetings to select a new RFR indicator for PLN and adopt a roadmap for the replacement schedule for the WIBOR and WIBID indicators – the Polish Financial Supervision Authority announced in a press release.
“KS NGR intends to select a new benchmark RFR for zloty at one of the upcoming meetings and adopt the Road Map. The next step of KS NGR will be to recommend standards for the use of the new RFR index in banking, leasing and factoring products” – it was written.
The reform of benchmarks and the conversion of WIBOR rates are crucial for millions of borrowers in Poland. First of all, it concerns housing loans in zlotys, of which approx. 95% has a variable interest rate depending on WIBOR rates. This means that only in this respect, the case concerns about 2 million contracts, i.e. about 3.6 million borrowers. In addition, there are other loans, leasing and factoring as well as bonds based on the WIBOR rate.
According to the announcement of the Steering Committee appointed during the meeting which took place on August 18, discussed the methodology for selecting a new RFR benchmark (risk free rates) for the zloty and the criteria that should be met by such an indicator.
The committee also discussed updating the draft roadmap identifying schedule of replacing the WIBOR and WIBID reference indices by the new RFR interest rate index in Poland. The aim of the roadmap is to reform the benchmarks in Poland in an orderly and efficient manner.
See also: President of the bank on replacing WIBOR with a new index. “We are looking for something that does not exist”
In mid-July, the Ministry of Finance announced the commencement of NGR works benchmark reform. The group was established in connection with the planned reform of benchmarks, assuming, inter alia, the introduction of a new interest rate benchmark, the input of which is information representing ON (overnight) transactions. Prime Minister Mateusz Morawiecki announced in April that as part of helping borrowers, banks should introduce a new index at the beginning of next year. If this fails, a different rate will be imposed, that is, Polonia calculated by the National Bank of Poland.