WIBOR will disappear in 2025. Gradual introduction of WIRON

The “Road Map” of the National Working Group for the Reform of Benchmarks, published by the Polish Financial Supervision Authority, provides for the widespread use of a new benchmark in place of the WIBOR index in 2025. The Steering Committee chose WIRON as the recommended index to replace the current WIBOR benchmark. Earlier it was talked about the WIRD indicator.

Liquidation of WIBOR.  The new ratio will reduce loan installments?
Liquidation of WIBOR. The new ratio will reduce loan installments?

– According to the assumptions of the Road Map of the National Working Group, the readiness is assumed to cease the calculation and publication of the WIBOR Reference Rates in 2025 – it was written in the document.

What is the WIRON indicator?

WIRON (Warsaw Interest Rate Overnight) will ultimately be the key interest rate benchmark in the sense of WMD regulation. It will be used in financial contracts (e.g. loan agreements), financial instruments (e.g. debt securities or derivatives) and by investment funds (e.g. in setting management fees).

How to reduce the mortgage installment?
How to reduce the mortgage installment?

Gradual introduction of a new benchmark

However, it is envisaged that the newly selected benchmark will be introduced gradually into contracts and financial instruments. As early as December 2022, market participants will be able to use the WIRON index in new financial instruments. Banks may offer loans using the WIRON index in parallel with the WIBOR loans offered so far.

What is WIBOR?

WIBOR (Warsaw Interbank Offered Rate) is the rate of interest on loans on the domestic interbank market. Put simply, WIBOR is the interest rate on loansthat banks are ready to provide to other banks. It is the arithmetic mean of the interest rate in the largest banks on an annual basis, with extreme values ​​being rejected. WIBOR is determined every day on the basis of data provided by banks at 11 on working days.


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