New information on WIBOR's successor. Launch will take less time than expected

GPW Benchmark has published benchmark statements for the POLSTR index and the POLSTR family of composite indices on its website. This is another formal stage of the benchmark reform in Poland.

The benchmark statement is a summary of the most important elements of the methodology used to develop POLSTR indices and the most important procedures related to it. The publication of the statement is required by the EU Benchmark Regulation (BMR).

GPW Benchmark, the administrator of interest rate reference indices in Poland, began developing and publishing the POLSTR Interest Rate Index and indices from the POLSTR Composite Index Family, i.e. POLSTR 1M, POLSTR 3M, POLSTR 6M and the POLSTR Single-Base Index (cumulative value of interest-bearing investments according to POLSTR) on 2 June.

POLSTR was selected by the financial sector in cooperation with financial security institutions associated in the Steering Committee of the National Working Group for Benchmark Reform (KS NGR) as the target interest rate reference index to replace the WIBOR reference index in the event that it is no longer provided.

POLSTR presents the average level of the interest rate weighted by the volume of deposit transactions in PLN concluded with O/N maturity on the wholesale money market.

POLSTR is a Risk Free Rate (RFR) index, close to the risk-free rate. It is based on the wholesale money market, defined as the market for unsecured deposits placed by credit institutions and financial institutions. The index value is determined and published on the next business day after the date of the transaction constituting the input data. POLSTR is a "backward looking" index, which means that it gradually takes into account the changing economic reality, including changes in the level of NBP interest rates.

POLSTR Composite Indices reflect an interest rate calculated in accordance with the compound interest method, resulting from the compounding of overnight interest rates expressed by POLSTR values ​​over a specified predefined maturity date backwards.

At the time of publication of the benchmark statement, the POLSTR indices are not yet used by financial market entities, which means that they do not constitute reference indicators within the meaning of the BMR Regulation.

The President of the Polish Bank Association, who is also the chairman of the NGR Committee, informed PAP Biznes at the beginning of June that the first use of POLSTR in financial instruments, thanks to which it will officially become a reference indicator, will take place much earlier than within the framework of the planned issue of treasury bonds at the end of 2025 and it will not be a product directed at consumers. (PAP Biznes)

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