The cessation of WIBID® and WIBOR® Reference Rates

GPW Benchmark, the administrator of benchmark indices, has decided to discontinue the development of the WIBID^® and WIBOR^® benchmark rates as part of an orderly phase-out process that will continue until 1 January 2037. This action forms part of the benchmark reform and is associated with the transition to new solutions, including the POLSTR^® index.

Consequently, 31 December 2036 will be the last determination date for the Reference Rates for all key Fixing Tenors, i.e. 1 month (1M), 3 months (3M), 6 months (6M). The Administrator notes that, in accordance with the communique published on 30 September 2025¹, the WIBID^® and WIBOR^® Reference Rates for Fixing Tenor O/N will be ceased as of 1 October 2026.

In accordance with the obligation imposed on the Administrator by the Polish Financial Supervision Authority (hereinafter: “KNF”), pursuant to article 21(3) of the BMR², WIBOR^® for Fixing Tenor 1Y shall be determined until 21 December 2026. The conclusion of the run-off period for WIBOR^® for Fixing Tenor 1Y is subject to a decision of the KNF, which may provide for its extension for another 12 months.

The cessation date for WIBID^® and WIBOR^® Reference Rates, 1 January 2037, has been determined based on the Administrator’s analyses of available data, including the actual maturity profile (comprising prepayments) of receivables of Polish banking sector, public data provided by Narodowy Bank Polski and the maturity structure of the treasury and non-treasury bonds that reference WIBOR^®.

The decision to cease to provide the WIBID^® and WIBOR^® Reference Rates has been made pursuant to article 21 of the BMR and is grounded on the analysis of conditions, which were scheduled for verification  in 2026³. That analysis included, in particular,  the conclusions of the Cyclical Reviews of the Method for Determining the WIBID^® and WIBOR^® Reference Rates, an assessment of the impact of the activities undertaken by the Administrator to continuously strengthen the Method for Determining the WIBOR^®, the KNF’s own assessment, as well as elements of internal regulations governing the adoption of the decision and the status of preparations for the introduction of financial agreements and instruments that refer to the new benchmark, POLSTR^®, in accordance with the Roadmap for replacing the WIBOR^® and WIBID^® benchmarks.  Conducting activities in accordance with article 21 of the BMR means that the decision, its justification, and the procedure for the orderly wind-down were subject to the approval of the Oversight Committee of Interest Rate Benchmarks and assessment of the KNF.

The activities of the Administrator are aligned with the benchmark reform in Poland aimed at replacing WIBID^® and WIBOR^® Reference Rates with risk-free rate (RFR)-type benchmarks, in light of global trends in benchmark reforms and tendencies in the money market. In the opinion of the Management Board of the Administrator, the critical benchmark WIBOR^®, as well as interest rate benchmark WIBID^®, can still be provided for the legacy financial instruments and agreements, in compliance with the BMR, taking into account, in particular, the ongoing adjustments to the methodology for determining the WIBID^® and WIBOR^® Reference Rates, e.g. by strengthening the Input Data hierarchy with additional validation procedures. The Administrator emphasizes that described activities and this communique do not concern historic quality, adequacy or representativeness of the WIBID^® and WIBOR^® Reference Rates, which are fully compliant with the BMR.

The orderly wind-down framework for the Reference Rates, proposed and adopted by the Administrator, intends to align the implementation of the benchmark reform with domestic market conditions, especially the extensive and diverse exposure of the users to the WIBID^® and WIBOR^®. The successful reduction of exposure to WIBID^® and WIBOR^® benchmarks will depend on taking measures aimed at immediate discontinuation of processes that assume their further use.

The Administrator shall, without delay, undertake actions to adjust the Reference Rates’ documentation accordingly, in particular, Regulations for the WIBID^® and WIBOR^® Reference Rates (hereinafter: “Regulations”) and the Benchmark Statement – WIBID^® and WIBOR^® Reference Rates (hereinafter: “Benchmark Statement”).

The Administrator, as the entity responsible for managing the mechanisms for determining the WIBID^® and WIBOR^® Reference Rates, pursuant to the BMR and the implementing regulations⁴, has defined, as key element of their cessation that, WIBID^® and WIBOR^® shall not be used in new financial products and agreements.

The relevant amendments shall be promptly incorporated into the Regulations and the Benchmark Statement, where the Administrator has already indicated that the use and application of the WIBID^® and WIBOR^® is permitted only under the License Agreement. In case of debt securities, relevant licence is obtained on the basis of the Rules for Granting Licences for the Use and Apply of Benchmark Indices in Debt Securities.

The Administrator shall, without delay, undertake actions aimed at adjusting the terms of licences granted under Licence Agreements, after the commencement of the WIBID^® and WIBOR^® orderly wind-down period, setting out the rules for the use of the Reference Rates during the transitional period, i.e. until readiness is achieved to implement product strategies that do not include references to the WIBID^® and WIBOR^®, and in any event no later than 31 December 2026. Since the commencement of the orderly wind-down period, the Administrator shall not enter into new Licence Agreements for use of WIBID^® and WIBOR^® and accession to the Rules for Granting Licences for the Use and Apply of Benchmark Indices in Debt Securities, will only be possible in respect of debt securities issued by 31 December 2026.

GPW Benchmark S.A. highlights the need to undertake actions supporting the orderly and safe implementation of the benchmark reform aimed at the introduction of a new interest rate benchmark as well as development of interest rate derivatives market.