Low interest rates and cheaper loans are the signs under which the year 2013 expired. Thanks to the decisions of the Monetary Policy Council, the borrowers saved up to several hundred zlotys a month. We can expect an equally low interest rate in the coming 2014.
The loan interest rate in 2013 dropped by almost 1.5 percentage point, all thanks to the Monetary Policy Council, which has repeatedly reduced interest rates. The cycle of reductions began in 2012, when the Monetary Policy Council reduced the NBP interest rates twice. In 2013, we recorded a total of 6 reductions and it was mainly due to these activities that 3-month Wibor fell.
At the beginning of the year, we recorded 4.10%, and in December Wibor is 2.65%. This means a decrease in interest rate and, consequently, a lower monthly installment. For example, a person paying back a loan of USD 300,000 paid an installment of approximately USD 1,730 in January 2013.
In December 2013, the installment of the same loan will be lower by approximately USD 250 and will amount to approximately USD 1,480. The decisions of the Monetary Policy Council have already affected all borrowers, regardless of the period in which the loan was granted and regardless of how often the bank updates the interest rate on its loans.
Lower interest rates are also good news for people who just took out loans in 2013. The creditworthiness increased due to the low interest rate. At the beginning of the year, a family with one child earning a total of twice the average wage in the economy could obtain an average loan of USD 395 thousand.
After 12 months, the available amount increased by about 10 percent to USD 435 thousand. We see similar increases in the available amount for all groups of borrowers, regardless of the number of people in the household or the level of income.
The coming year means major changes on the credit market. The biggest will undoubtedly trigger the introduction of the new Recommendation S, adopted in June 2013 by the Polish Financial Supervision Authority. This document must be introduced by all banks by the end of 2013 at the latest, which will mean that we will enter the new 2014 year in a slightly changed credit reality.