Lending Reference Rates

Euro Interbank Offered Rate (EURIBOR) – for credit facilities in Euro

EURIBOR (Euro Interbank Offered Rate) is the rate of interest in force from time to time at which term deposits in Euro for periods equal to the relevant interest period of the credit facility are offered in the Eurozone Interbank Market by one prime bank to another prime bank, and published by Thomson Reuters on data page “EURIBOR01” (or any other successor page) shortly after 11 a.m. Central European time two business days prior to the date of the commencement of the relevant interest period. 

Credit facilities dated as of 09/09/2015 or thereafter provide that, in case the relevant EURIBOR rate is less than zero, then EURIBOR shall be deemed to be zero for the purposes of the credit facility. 

The administrator of Euribor is the European Money Markets Institute (EMMI) [1].

London Interbank Offered Rate (LIBOR) – for credit facilities other than in Euro

LIBOR (London Interbank Offered Rate) is the rate of interest in force from time to time at which term deposits in the currency of the credit facility (other than Euro) for periods equal to the relevant interest period of the credit facility are offered in the London Interbank Market by one prime bank to another prime bank, and published by ICE Benchmark Administration Limited (or any successor body) at approximately 11.45 a.m. London time, either (depending on the terms of the relevant credit facility):

i. two business days prior to the date of the commencement of the relevant interest period (for credit facilities in US Dollar, Swiss Franc and Japanese Yen and certain credit facilities in Pound Sterling); or

ii. on the first day of commencement of the relevant interest period (for certain credit facilities in Pound Sterling).

Credit facilities dated as of 09/09/2015 or thereafter provide that, in case the relevant LIBOR rate is less than zero, then LIBOR shall be deemed to be zero for the purposes of the credit facility.

The administrator of Libor is the ICE Benchmark Administration (IBA) [1].

European Central Bank Base Rate (ECB Base Rate)

The ECB Base Rate is the interest rate set by the Governing Council of the European Central Bank (ECB) from time to time during its monetary policy meetings, based on which ECB main refinancing operations of the Eurosystem are carried out through a weekly tender procedure for fixed rate tenders.

The ECB Base Rate may increase or decrease from time to time.

The ECB Base Rate applicable from time to time is published on the website of the ECB https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html

Given that the interest rate of the credit facility includes the ECB Base Rate, the interest rate of the credit facility will change on the effective date of a change in the ECB Base Rate. Any changes to the ECB Base Rate are announced through a press release of the Governing Council of the ECB regarding monetary policy decisions, which is posted on the website of the ECB https://www.ecb.europa.eu/press/pr/activities/mopo/html/index.en.html. Any such change in the ECB Base Rate shall have effect as from the date mentioned in the relevant press release as the date on which the relevant interest rate change shall start and/or from which it shall have effect.

If the ECB Base Rate is less than zero (0) at any time, then the ECB Base Rate applied by the Bank shall be deemed to be zero (0) for the purposes of calculating your interest rate for the period for which the ECB Base Rate is set by the Governing Council of the ECB as being less than zero (0). In such a case, the interest rate that the Bank will apply to the credit facility for that period, shall be ECB Base Rate = zero (0) plus margin.

The Bank’s Base Rates – for credit facilities in Euro

  • Bank Base Rate (BBR)

BBR is the Base rate of the Bank of Cyprus and is calculated as follows:

- For loans that have been granted prior to the 1st January 2008: 

The Bank’s Base Rate applicable to loans that have been granted prior to the 1st of January 2008 and continue to be in force, is the European Central Bank Base Rate (ECB Base Rate), as defined hereunder:

The ECB Base Rate is the interest rate set by the Governing Council of the European Central Bank (ECB) from time to time during its monetary policy meetings, based on which ECB main refinancing operations of the Eurosystem are carried out through a weekly tender procedure for fixed rate tenders.

The ECB Base Rate may increase or decrease from time to time.

The ECB Base Rate applicable from time to time is published on the website of the ECB https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html

Given that the interest rate of the Loan includes the ECB Base Rate, the interest rate of the Loan will change on the effective date of a change in the ECB Base Rate. Any changes to the ECB Base Rate are announced through a press release of the Governing Council of the ECB regarding monetary policy decisions, which is posted on the website of the ECB https://www.ecb.europa.eu/press/pr/activities/mopo/html/index.en.html. Any such change in the ECB Base Rate shall have effect as from the date mentioned in the relevant press release as the date on which the relevant interest rate change shall start and/or from which it shall have effect.

- For credit facilities entered into on or after 1 January 2008:

The BBR is calculated as the sum of (a) the average interest rate paid on euro-denominated household deposits in the Republic of Cyprus (outstanding amounts) by euro area residents with agreed maturities of up to 2 years as published on the website of the Central Bank of Cyprus on a monthly basis[2](the ‘CBC benchmark rate’) and (b) a fixed spread of 2.24%. The BBR is revised on a quarterly basis (15 March, 15 June, 15 September & 15 December)[3] using the latest available CBC benchmark rate.

  • Bank Business Base Rate / Base Rate for Commercial Facilities (BBBR)

BBBR is the Business Base rate of the Bank of Cyprus and is calculated as the sum of (a) the CBC benchmark rate and (b) a fixed spread of 1.24%. The BBBR is revised on a quarterly basis (15 March, 15 June, 15 September & 15 December)[4] using the latest available CBC benchmark rate.

  • Bank Housing Base Rate / Base Rate for Housing Loans (ΒHBR)

BHBR is the Housing Base rate of the Bank of Cyprus and is calculated as the sum of (a) the CBC benchmark rate and (b) a fixed spread of 0.49%. The BHBR is revised on a quarterly basis (15 March, 15 June, 15 September & 15 December)[5]using the latest available CBC benchmark rate.  

Further information on the above reference interest rates can be found on the following websites:

CBC benchmark rate: www.centralbank.cy

Euribor: www.emmi-benchmarks.eu

Libor: www.theice.com/iba/libor

 


 

[1] Source: Commission Implementing Regulation (EU) 2017/2446 of 19 December 2017: http://data.europa.eu/eli/reg_impl/2017/2446/oj

[2] Published under Monetary and Financial Statistics (‘’MFI interest rates on euro-denominated deposits (outstanding amounts) by euro area residents”) at www.centralbank.cy.

[3] Or the next working day if not a business day.

[4] Or the next working day if not a business day.

[5] Or the next working day if not a business day.

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