The Polish government in April said it would seek to replace the WIBOR interbank rate on which most mortgages are based by Jan. 1, 2023, as part of a package of measures to ease the pain of borrowers squeezed by rising interest rates.
However, banks had said it would not be possible to phase out the rate so quickly.
"The reform of benchmarks in Poland will be fully implemented by the end of 2024, while the implementation by market participants of a new offer of financial products using the WIRON index is planned for 2023 and 2024," the KNF said in a statement.
The KNF said the Warsaw Interest Rate Overnight (WIRON) was calculated in the same way as the Warsaw Deposit Market Index (WIRD) chosen by the steering committee of a national working group to replace WIBOR.
"Assumptions in the Road Map... show the readiness to stop developing and publishing the WIBOR and WIBID reference indicators from the beginning of 2025," the KNF said, referring also to the Warsaw Interbank Offer Bid Rate, which is the rate banks pay for funds deposited by other banks.
The KNF said market participants would be able to start using WIRON in financial instruments in December 2022.
The roadmap for the replacement of WIBOR was prepared by a working group that includes representatives of Poland's finance ministry, central bank, KNF, the Warsaw Stock Exchange, leading commercial banks and investment fund management companies among others.
(Reporting by Alan Charlish and Marek Strzelecki; Editing by Mark Potter)
