On February 12, the Tribunal answered the questions of the Polish court regarding mortgage loans based on WIBOR. The ruling stated that the transparency requirement under EU regulations does not mean there is a need to disclose detailed information to customers about how the benchmark is calculated.
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Katarzyna Kuniewicz, Otodom expert, emphasizes that this judgment was crucial for maintaining the stability of the housing market in Poland.
– From the market perspective, the key thing is that The EU judicial body found no grounds to question the very construction of these contracts – Kuniewicz pointed out, adding that However, the CJEU's decision does not end the discussion on reliable information to clients about the risk associated with variable interest rates.
WIBOR and mortgage loans – key data
The expert noted that a significant part of apartments in Poland is financed with mortgage loans. If the CJEU questioned WIBOR rates, the consequences could be much more serious than in the case of Swiss franc loans. Currently, about 75 percent Newly granted mortgage loans are based on a fixed interest rate, but still approximately 25 percent is based on WIBOR.
— It may seem that the matter concerns a smaller part of the market, but a few years ago almost all loans were based on WIBOR. Currently, almost 90 percent active credit agreements in Poland are liabilities based on a variable interest rate, which amounts to approximately PLN 340 billion – explained Katarzyna Kuniewicz.
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The expert emphasized that the CJEU's decision should reassure borrowers because there are no grounds for mass questioning of contracts, as was the case with Swiss franc loans. The amount of loan installments will still depend mainly on the decisions of the Monetary Policy Council and the level of interest rates.
Stability for the market and the economy
Katarzyna Kuniewicz pointed out that The CJEU's ruling sends a clear signal that the situation related to WIBOR is not analogous to the problems with Swiss franc loans.
— Stability of the banking system is very much needed today. It translates directly into the condition of the entire housing sector, which is one of the pillars of the Polish economy, she said.
Read also: After the CJEU judgment, the courts will not examine WIBOR. Banks are happy
The Tribunal's decision, although it may disappoint some borrowers who are counting on recovering their money in court, is an important step towards maintaining balance in the market. Thanks to it, the housing sector can continue to play its key role in the Polish economy.
