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Tuesday, July 23, 2024

ING Bank Śląski. WIRON. This was supposed to be a revolution in loans. The bank withdraws the offer

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We are ending the sale of mortgage products with variable interest rates based on WIRON – Piotr Utrata, spokesman for ING Bank Śląski, told the tvn24.pl business editorial team. He also explained what people who have already taken out such a loan should expect. ING is the first bank in Poland to introduce WIRON-based mortgage loans to its offer.

From June 24, ING Bank Śląski will no longer grant mortgage loans based on the WIRON index. This is related to the prolonged work of the Steering Committee of the National Working Group (NGR), which was to decide on the indicator that will replace WIBOR in mortgage loans. According to previous information, this indicator was to be WIRON.

ING resigns from WIRON

– The bank made this decision because it wants to reduce the level of customer uncertainty regarding the final shape of the benchmark reform – Piotr Utrata, press spokesman at ING Bank Śląski, told the tvn24.pl business editorial staff.

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In June last year, ING was the first bank in Poland to introduce WIRON-based mortgage loans to its offer. – I expect and hope that other banks will follow suit – commented the chairman of the Polish Financial Supervision Authority, Jacek Jastrzębski.

For a year, ING clients took out loans based on WIRON. What about them? “WIRON is still an index listed by the GPW Benchmark, therefore the withdrawal of the offer of floating interest loans will not affect them (customers – editor). In the event of an official change of the reference index, customers have appropriate provisions in their contracts enabling them to adapt to such a situation,” ING said Bank Śląski.

He added that the bank's offer will only include mortgage products with periodically fixed interest rates.

Road map for liquidation of WIBOR

According to the current so-called roadmap, the WIBOR reference index currently used on the market (which determines, for example, interest rates on loans or bonds) is to be replaced by the WIRON index by the end of 2027. However, Finance Minister Andrzej Domański asked for another review of alternative indicators to WIBOR.

Information about NGR's decision is expected to be announced later this month. – In mid-June, the National Working Group on the reform of reference indices will make decisions on the indicator that will replace WIBOR – said Tadeusz Białek, president of the Polish Bank Association, at a press conference in April.

The loan installment usually consists of the base rate (e.g. WIBOR or WIRON) plus the bank's margin.

Author:Paulina Karpińska

Main photo source: Shutterstock



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