Recital 5

(5)The 2021 Financial Stability Report issued by the National Bank of Poland ² mentions that, at the end of 2020, more than 410 000 households in Poland had CHF LIBOR- related mortgages, based on various tenors of CHF LIBOR. That represents around 20 % of the total Polish mortgage loan portfolio, which, according to other data provided by the relevant authorities, account for a total value of around PLN 100 billion (ca. EUR 22 billion). The majority of those mortgages is long-term and will remain outstanding beyond 2030. The report highlights the risks posed by the cessation of CHF LIBOR, and the need to ensure the continuity of Swiss franc denominated housing loan contracts to avoid the materialisation of such risks. The report further underlines that the absence of fallback provisions and legal acts designating the replacement for the CHF LIBOR benchmark might threaten the continuity of such agreements, and consequently, translate into financial losses of banks. The Polish Ministry of Finance submitted similar data to the Commission.