Poland’s monetary regulator says WIRD to switch WIBOR as rate of interest benchmark

The brand of Poland’s KNF regulator is pictured on their headquarters in Warsaw April 7, 2015. REUTERS/Kacper Pempel

GDANSK, Sept 2 (Reuters) – Poland’s monetary regulator KNF on Friday stated the steering committee of a nationwide working group has chosen the Warsaw Deposit Market Index (WIRD) to switch the Warsaw Interbank Provided Price (WIBOR) because the rate of interest benchmark used for calculating mortgage instalments.

The Polish authorities in April stated it might search to switch the WIBOR interbank charge on which most mortgages are primarily based by Jan. 1, 2023, along with different borrower easing measures.

Rising rates of interest have squeezed the family budgets of many Polish mortgage holders, whose instalments rise together with the WIBOR interbank charge.

“The following step for (the steering committee of the nationwide working group) shall be adopting a roadmap specifying the schedule of actions in the direction of changing the WIBOR benchmark with WIRD”, KNF stated in a press launch.

“Finally WIRD is to grow to be the important thing rate of interest benchmark … utilized in monetary agreements (i.e. mortgage offers), monetary devices (i.e. debt securities or derivatives) and by funding funds (i.e. for setting administration charges),” it added.

WIRD makes use of knowledge representing in a single day (ON) transactions as its enter.

The working group contains representatives of Poland’s finance ministry, central financial institution, KNF, the Warsaw Inventory Change, main industrial banks and funding fund administration corporations amongst others.

Reporting by Karol Badohal; Modifying by Mark Porter

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