Work on the successor of WIBOR is taking on momentum, and with them there are expanding speculations and hopes of a more unchangeable and fairer mention strategy for the financial market. WIRON, although a promising candidate, is now in doubt, which creates uncertainty among financial institutions and borrowers.
Review of alternate indicators
On 29 March 2024, the Steering Committee of the National Working Group on the improvement of benchmarks decided unanimously to review and analyse alternate indicators for WIBOR. This process will cover both WIRON and another possible indices or indicators. This movement responds to the request to adapt to the dynamically changing macroeconomic environment of the Polish economy.
The National Working Group on the improvement of mention Indicators, acting with the Financial Supervision Commission, was set up to carry out a improvement that provides for the introduction of a fresh benchmark interest rate. This step aims to guarantee greater transparency and stableness in the financial market.
The uncertain future of WIRON
Although WIRON was 1 of the main candidates to replace WIBOR, it is unofficially heard that his future is uncertain. There is simply a legal hazard that could put an end to his chances of taking over the function of the main benchmark. Banks that have already begun to supply WIRON-based loans are in difficulty as it is not clear what will happen to these agreements in the event of the liquidation of the indicator.
The government, which initially supported WIRON, can now rethink its position, especially in the context of Poland's hold in reforming benchmarks compared to another countries of the European Union. Mateusz Morawiecki, then Prime Minister, took up this challenge, but the effects of this improvement may now be threatened.
The fight for financial marketplace stability
Faced with rising inflation and changing economical conditions, financial marketplace stableness is becoming a priority. Work on reforming benchmarks is essential to guarantee fair conditions for borrowers and to preserve the stableness of the financial system. However, decisions on the selection of a fresh benchmark and possible changes in milestones will have a crucial impact on the further improvement of the financial marketplace in Poland.
It is crucial that this process is transparent and takes into account the interests of all parties involved, both financial institutions and borrowers. This is the only way to accomplish a sustainable and effective solution that will contribute to stableness and fairness in the financial market.
Ignacy Michałowski
OSINT investigator with experience in global journalism projects. It has been publishing materials for over 20 years for the largest releases. In social activities he engaged in various projects and initiatives aimed at improving the quality of life of people, especially those of mediocre communities. He was besides active in the fight for human rights. Contact: [email protected]
