The annual interest rate, which up to the present has been indicated in the loan agreements of Rietumu Banka, consists of two parts: variable and constant (fixed).
The variable part corresponds to the 3 month or 6 month LIBOR (London Interbank Offer Rate), which is a benchmark for short-term interest rates in the global financial market. In its turn, the constant (fixed) part of the rate is determined by the Bank individually for each client.
Taking into account that in accordance with the Regulation (EU) 2016/1011 of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds, from 1 January 2022, LIBOR rate for the euro will be discontinued, and it will not be published thenceforward; Rietumu Banka will replace LIBOR rate in the loan agreements by EURIBOR rate (Euro Interbank Offered Rate).
The Bank will contact each client who is
affected by the changes mentioned above personally and offer to sign the
necessary amendments to their loan agreements. If, for whatever reason,
amendments to loan agreements are not signed before 31 December of this year,
starting from 1 January 2022, the Bank will unilaterally automatically replace
LIBOR EUR by EURIBOR of the corresponding period. The constant (fixed) part of
the rate indicated in the loan agreements will remain unchanged.
We express our hope for your understanding and further productive cooperation.
The Q2 2021 financial statement of Rietumu Bank and Rietumu Group has been published.
