Change of the WIBOR rate to WIRD next year. Forecast of Paweł Borys, president of the Polish Development Fund

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From next year, loans based on the new rate should appear in the Polish banking sector – said Paweł Borys, the president of the Polish Development Fund, in the backstage of the Economic Forum in Karpacz. He added that the banks also have something to win here. The new rate is lower, so the first banks that decide to switch to the new rate will be more competitive in the market.

– We have not yet finally adopted the ‘roadmap’, but it should be assumed that this transition process of WIBOR / WIRD rates will take up to two or three years, explained Boris.

The Steering Committee of the National Working Group (KS NGR) for indicators chose the index WIRD as an alternative interest rate benchmark, which is ultimately to replace WIBOR and become a key indicator. The next step of KS NGR will be the adoption of a roadmap defining the schedule of activities aimed at replacing the WIBOR reference indicator with the WIRD indicator.

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According to the president of the Polish Development Fund, loans based on the new rate should appear in the Polish banking sector from next year.

– In my opinion, banks will be able to offer mortgage loans based on WIRD from next year. In most countries, this transition was such that new products were introduced at the beginning, then there was a period of up to two years of the entire portfolio’s transition to a new rate, with a correction spread. So I assume that from the beginning of next year, loans based on the new rate will appear in the Polish banking sector, because banks also have something to win here. The new rate is lower, so the first banks that decide to switch to the new rate will be more competitive on the market, said Borys on the sidelines of the Economic Forum in Karpacz.

He added that at the moment the forecasts show that this year GPW Benchmark will start publishing the new benchmark on a regular basis.

– This will allow you to create products based on the new rate. And even the lack of initially hedging instruments is not a barrier here, a large part of the mortgage loan portfolio is secured on the deposit side, it is not a barrier – he explained.

On Wednesday, September 7, another decision-making meeting of the Monetary Policy Council is scheduled. Economists unanimously expect further increases. In July, the MPC raised interest rates by 50 basis points – including the reference rate to 6.50 percent. It was the 10th increase in a row.

NBP reference ratePAP / Maciej Zieliński

Main photo source: PAP / Tomasz Wiktor

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