Bank Millennium believes that the possible elimination of WIBOR from the mortgage market will further aggravate the forecasted 30-40% y / y decline in mortgage loans in 2022, CEO Joao Bras Jorge announced.
“We have to evaluate it. It is a fresh issue. It surprised us completely,” said the president, when asked how he saw the new sale of mortgage loans this year, taking into account the elimination of WIBOR from the mortgage market proposed by the prime minister yesterday.
“In terms of expectations for the sale of [mortgage loans in 2022], two things are happening. One is that in a less favorable economic scenario ahead, it is normal for some consumers to delay making a decision. Only because of an economic downturn we will have The second thing, the completely unprecedented one, for a rapid increase in interest rates raises the cost of risk and the cost of loans to a higher level, which will result in a lower demand for mortgage loans due to the cost of loans. Due to the possible higher cost of risk, it will also drop. So even without this news about WIBOR, the forecasts for mortgage loans for 2022 are at least 30%, and maybe 40% less than in 2021. possible liquidation of WIBOR. After the liquidation of WIBOR there will probably be even more,” explained the president.
Yesterday, Prime Minister Mateusz Morawicki proposed a four-point plan aimed at improving the situation of borrowers with PLN debt; it provides, inter alia, departure from 1 January 2023 from the use of the WIBOR rate and its replacement with the overnight deposit rate.
Bank Millennium is a nationwide, universal bank operating under this brand since 2003. In 1992, the shares of the bank (then BIG SA) as the first financial institution – made their debut on the WSE. The strategic shareholder of Bank Millennium is Banco Comercial Portugues (Millennium bcp) – the largest commercial bank in Portugal. The bank’s total assets amounted to PLN 103.91 billion at the end of 2021.
Source: Bank Millennium and ISBnews
