The Stop Bankowemu Bezprawiu (Stop Banking Lawlessness) association plans to sue GPW Benchmark, the company responsible for determining the WIBOR index, which is used to calculate interest rates for Polish złoty-denominated mortgage loans. The next step would involve lawsuits filed by borrowers against banks. Although most such cases currently end in losses for borrowers, this was also the case in the early stages of lawsuits over Swiss franc loans. A ruling by the Court of Justice of the European Union (CJEU) expected in 2026 may change the landscape.
“We already have rulings from the CJEU that allow the examination of the WIBOR index, and we intend to explore this in the coming months. Lawsuits will be filed against entities such as GPW Benchmark, which sets the WIBOR index,” said Arkadiusz Szcześniak, president of Stop Bankowemu Bezprawiu, in an interview with Newseria Biznes.
Szcześniak highlighted that borrowers with złoty-denominated loans often face worse repayment conditions than those with Swiss franc loans, as some report their loan payments have tripled. “We are receiving reports that these loans are increasingly difficult to repay, which will become not only a social problem but also a legal one. If a significant group of people stops repaying their loans, this will also be a problem for the state and banks,” he warned.
Rising Loan Payments Due to WIBOR
The sharp increase in Swiss franc loan payments began a decade ago when the Swiss National Bank (SNB) removed the franc’s peg to the euro in January 2015. This caused the franc to surge in value, significantly increasing payments for borrowers.
For złoty-denominated loans, a similar issue arose due to the rapid increase in the WIBOR index, which, along with the bank’s margin, determines interest rates for variable-rate loans. This spike occurred in 2021 and 2022 when Poland’s central bank, the Narodowy Bank Polski (NBP), raised interest rates to combat soaring inflation. WIBOR rose from near-zero levels to over 6% within months.
Although two rate cuts were made before the 2023 autumn elections, WIBOR remains close to 6%, and further cuts are unlikely before mid-2025.
Legal Challenges Against WIBOR
In late 2024, the District Court in Suwałki issued a groundbreaking ruling that removed both WIBOR and the bank’s margin from a złoty-denominated mortgage agreement. This means only the principal of the loan is to be repaid. Previously, courts had only suspended WIBOR-related payments during ongoing trials.
In January 2025, the same Suwałki court nullified its first złoty-denominated mortgage agreement based on WIBOR, citing that the bank failed to provide borrowers with adequate information about the index. However, the Polish Bank Association pointed out that this ruling is not final. It emphasized that out of 1,111 cases concerning WIBOR, 24 rulings have been issued, all confirming the legality of the WIBOR index.
Borrowers primarily argue that banks did not provide clear information about how their loan payments could evolve over time, particularly regarding the structure of installments. With WIBOR increases, the interest portion of payments rises while the principal portion decreases, leading borrowers to feel they are paying banks without reducing their debt.
Moreover, borrowers challenge the way WIBOR is determined. This reference rate is based on interbank lending declarations rather than actual transactions, leading to questions about its accuracy. Although the Polish government under Mateusz Morawiecki announced plans to phase out WIBOR in 2022, it remains in use for existing contracts.
Transitioning from WIBOR to a New Index
Efforts to replace WIBOR are ongoing. Initially, WIRON (Warsaw Interest Rate Overnight) was proposed as its successor, but in December 2024, the National Working Group Steering Committee selected WIRF as the new reference index. WIRF is based on unsecured deposit rates between credit and financial institutions.
“There are plans to replace WIBOR with another index, but the devil is in the details. Discussions have been ongoing for at least five years, with numerous models proposed. The key lies in what data will be used to calculate the new index,” said Andrzej Zorski, a lawyer at Pilawska Zorski Adwokaci.
Zorski added that the most transparent approach would involve using interest rates directly set by the NBP. However, WIBOR rates are consistently higher. “Although WIRD and WIRON have been proposed, their calculation methods also raise fairness concerns,” he stated.
Potential CJEU Ruling in 2026
The CJEU has previously ruled that national courts can review the fairness of indices like Spain’s IRPH, which was mandated by law. In Poland, WIBOR is not legally codified, further bolstering borrowers’ arguments.
A pending CJEU case on WIBOR could further shape the future of złoty-denominated loans. If the ruling is favorable to borrowers, it could lead to widespread invalidation of variable-rate loans or the removal of WIBOR from agreements.
“For now, lawsuits involving złoty loans tied to WIBOR are fewer and riskier compared to Swiss franc cases,” Zorski said. “However, if the CJEU ruling is favorable, it could open the door to significant changes in how these loans are treated in court.”
Source: CEO.com.pl
