The Steering Committee of the National Working Group on benchmark reform (NWG Steering Committee) informs that in accordance with the schedule of the NWG Roadmap, on June 2, 2025, the official determination of the POLSTR® (Polish Short Term Rate) Interest Rate Index and indices from the POLSTR® Compound Indices Family has commenced. The administrator of POLSTR® is GPW Benchmark SA – an entity holding authorization from the Polish Financial Supervision Authority and entered in the register of benchmark administrators maintained by the European Securities and Markets Authority (ESMA).

The determination of indices is carried out in accordance with the provisions of the Benchmark Regulation, and the Administrator has adopted and published the necessary regulatory documentation.

As a result of the NWG's work to date, the NWG Steering Committee decided to select POLSTR as the recommended interest rate benchmark to replace the WIBOR benchmark in the event of a cessation of its provision. The conditions necessary for the possibility of using POLSTR® and indices from the POLSTR® Compound Indices Family by supervised entities in financial contracts, financial instruments and investment funds have been met.

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

POLSTR® is a Risk Free Rate (RFR) type index, close to a risk-free rate. It is based on the wholesale money market, defined as the market of unsecured deposits concluded by credit institutions and financial institutions. The value of the index is determined and published on the next business day after the date of the transactions constituting the input data. POLSTR® has the character of 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.

Based on historical POLSTR® values, indices belonging to the POLSTR® Compound Indices Family are determined. These include POLSTR® 1M Compound Rate, POLSTR® 3M Compound Rate and POLSTR® 6M Compound Rate, which reflect the interest rate calculated in accordance with the compound interest method resulting from the compound of the one-day interest rates expressed by POLSTR® values over a given backward-looking predefined maturity period.

Additionally, the Administrator determines the POLSTR® Compound Index, expressed in index points as the accumulated value of an investment earning interest at the POLSTR® interest rate. For this index, the start date was set on January 4, 2021, and the start value at 100 points.

GPW Benchmark SA provides pre-production history of POLSTR® and POLSTR® Compound Indices Family calculated on input data for the period from January 4, 2021. In order to ensure the possibility of fulfilling the obligations resulting from the benchmark reform, GPW Benchmark SA has also provided the simulation of the history of POLSTR® dating back to 2019.

The simulation is necessary to determine the value of the credit adjustment spread based on the 5-year median of the difference between the historical values of the replaced and replacement benchmark in case of a cessation of WIBID and WIBOR Reference Rates.

More information on the POLSTR® Interest Rate Index and indices from the POLSTR® Compound Indices Family, including index documentation as well as values and statistics, are available on the website: https://gpwbenchmark.pl in the "POLSTR & WIRON" tab.