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.

 

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 major bank to another major 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 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 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[1] (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)[2] using the latest available CBC benchmark rate.

 

On 16 February 2015, the Bank announced that it would reduce the BBR by 1% from 5% to 4% (effective 1 March 2015) to take into account an anticipated subsequent reduction in the CBC benchmark rate.

 

As the Bank has pre-emptively reduced all of its Base rates for credit facilities entered into on or after 1 January 2008 in anticipation of the subsequent reduction in the CBC benchmark rate, the Bank shall maintain the current reduced level of Base rates while the CBC benchmark rate adjusts accordingly. Each of the Bank’s Base rates (for credit facilities entered into on or after 1 January 2008) will resume tracking the CBC benchmark rate once the current reduction in deposit rates has been reflected in the CBC benchmark rate.

 

Please see the relevant announcement here on the Bank’s website.

 

-        For credit facilities entered into before 1 January 2008:

The BBR is calculated as the interest rate determined by the Governing Council of the European Central Bank (ECB) at which ECB main refinancing operations are carried out through a weekly fixed-rate tender procedure (the ‘ECB Base 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)[3] using the latest available CBC benchmark rate.

 

On 16 February 2015, the Bank announced that it would reduce the BBBR by 1% from 4% to 3% (effective 1 March 2015) to take into account an anticipated subsequent reduction in the CBC benchmark rate.

 

Please see the relevant announcement here on the Bank’s website.

 

  • § 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)[4] using the latest available CBC benchmark rate.  

 

On 16 February 2015, the Bank announced that it would reduce the BHBR by 1% from 3.25% to 2.25% (effective 1 March 2015) to take into account an anticipated subsequent reduction in the CBC benchmark rate.

 

Please see the relevant announcement here on the Bank’s website.

 

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

CBC benchmark rate and ECB Base rate: www.centralbank.gov.cy and www.ecb.europa.eu

 

Euribor: www.emmi-benchmarks.eu

 

Libor: www.theice.com/iba/libor

 

 

 

 



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

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

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

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

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