Statement of the National Working Group on Benchmark Reform

In light of recent media publications concerning the benchmark reform process and the activities of the National Working Group on Benchmark Reform („NGR”) that contain information inconsistent with the facts, we would like to provide the following clarifications. This statement aims to present the principles governing the operation of the NGR and key information regarding the benchmark reform currently underway in Poland.

The NGR is an expert advisory body. It does not exercise administrative powers, enact legislation, or issue legally binding decisions. Accordingly, claims questioning the legitimacy of the NGR's activities due to the absence of a statutory basis fail to reflect the nature of such market-led initiatives. The NGR operates in line with established international practice, whereby similar working groups function through cooperation and consensus among public authorities and market participants rather than under specific legislative acts. Contrary to assertions made in one recent publication, the NGR was not established by an administrative decision of the Polish Financial Supervision Authority (KNF). It was formed through cooperation and consensus among representatives of public institutions and financial market participants.

Neither the NGR Steering Committee nor any other NGR body determines the level of loan instalments or otherwise intervenes in contractual relationships. The role of the NGR is to develop recommendations and support the benchmark transition process. Its objective is to facilitate an orderly transition, safeguard financial stability, and support legal certainty throughout the implementation of the benchmark reform.

The NGR conducts its work in a transparent manner. Information regarding the Group's activities is publicly available on the KNF website. Documents developed within the framework of the NGR are subject to public consultation processes, enabling all interested stakeholders to submit comments and observations. Draft recommendations have also been shared with the Office of Competition and Consumer Protection (UOKiK) and the Financial Ombudsman, institutions statutorily responsible for consumer protection.

Since its establishment, the NGR has also undertaken educational and communication activities relating to benchmark reform. Informational materials explaining the objectives of the reform and the characteristics of benchmark indices have been published, while further guidance and educational content are planned to support market participants, including consumers, in understanding both the rationale and implementation of the reform.

The NGR's work involves experts representing a broad range of public institutions and financial market participants. Their involvement is intended to support the development of solutions that ensure regulatory compliance, legal certainty, operational readiness, and the effective execution of the reform. The composition of the NGR Steering Committee is publicly available, and the Group's work includes representatives of both the public and private sectors.

The process of selecting the target benchmark was conducted on the basis of publicly disclosed assessment criteria. The process was transparent and included multiple rounds of public consultation available to all interested stakeholders, including consumers and consumer organizations. The selected benchmark was consistent with the prevailing views expressed by market participants during an additional consultation round. The assessment criteria and rationale for the selection have been published and remain available on the KNF website. The benchmark reform is not intended to provide an advantage to any party to contracts or financial instruments referencing benchmark rates. Its purpose is to ensure compliance with applicable regulatory requirements while preserving the stability and integrity of the financial system.

It is also incorrect to claim that no European Union Member State has replaced a benchmark in existing credit agreements. A relevant example is the replacement of CHF LIBOR with SARON pursuant to a European Commission Implementing Regulation. This replacement applied to all contracts referencing CHF LIBOR, including retail mortgage loan agreements.

While the NGR does not participate in the legislative process and has no mandate to draft legislation, certain inaccurate statements concerning the introduction of statutory provisions enabling the designation of a replacement rate for a domestic critical benchmark under the EU Benchmarks Regulation (BMR) should also be corrected. These provisions were introduced by the government, underwent the standard governmental legislative process, and were included in the draft legislation submitted to the Polish Parliament. This can be verified through publicly available sources, including the websites of the Polish Parliament and the Government Legislation Centre. Accordingly, claims suggesting that these measures were introduced only during parliamentary proceedings as a late-stage parliamentary amendment are factually incorrect.

The NGR emphasizes that public discussion concerning benchmark reform should be based on accurate, verified, and comprehensive information. Benchmark reform is a process of significant importance to the stability and resilience of the financial system and is being carried out with the involvement of public authorities, including supervisory institutions, and a broad range of market participants. The NGR remains committed to constructive dialogue and welcomes substantive input from all stakeholders, while encouraging public debate to be grounded in facts and publicly available, reliable sources.