Themis Base Rates

Rates Information

1. Euro Interbank Offered Rate (EURIBOR) - for credit facilities in Euro
2. European Central Bank Base Rate (ECB Base Rate)
3. Bank Of Cyprus Base Rates - for credit facilities in Euro
   
   
   

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

Definition

EURIBOR (Euro Interbank Offered Rate) is the rate at which wholesale funds in euro, for periods equal to the relevant interest period of the credit facility, could be obtained by credit institutions in the European Union (EU) and European Free Trade Association (EFTA) countries in the unsecured money market, and published on every TARGET Day[1] by the European Money Markets Institute (EMMI) (or any successor body)  at or shortly after 11 a.m. Brussels time. The applicable EURIBOR for a specific interest period is set two Business Days[2]prior to the date of the commencement of such period.

The administrator of EURIBOR is the European Money Markets Institute (EMMI).

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

Calculation methodology

EURIBOR is calculated following the methodology (referred to as the ‘hybrid methodology’) described in the Benchmark Determination Methodology for EURIBOR (https://www.emmi-benchmarks.eu/benchmarks/euribor/methodology/) and relies on contributions from a panel of credit institutions that are active participants in the euro money markets (Panel Banks) in order to determine the average rate at which wholesale funds in euro could be obtained by credit institutions in the EU and EFTA countries in the unsecured money market.

EURIBOR is grounded, to the extent possible, in euro money market transactions that reflect the Underlying Interest[3].To ensure robustness in the absence of transactions in the Underlying Interest, the Benchmark Determination Methodology for EURIBOR follows a hierarchical approach consisting of three levels. These levels are employed progressively and in the following order:

• Level 1 consists of contributions based solely on transactions in the Underlying Interest at the Defined Tenor[4] from the prior TARGET Day, using a formulaic approach provided by EMMI.
• Level 2 consists of contributions based on transactions in the Underlying Interest across the money market maturity spectrum and from recent TARGET Days, using a defined range of formulaic calculation techniques provided by EMMI.
• Level 3 consists of contributions based on transactions in the Underlying Interest and/or other data from a range of markets closely related to the unsecured euro money market, using a combination of modelling techniques and/or the Panel Bank’s judgement.

EMMI performs an annual assessment of the EURIBOR methodology. Based on this assessment, EMMI will decide annually on any changes to the EURIBOR methodology. The objective of any change to the methodology is to ensure that the input data and methodology represent the market and economic reality EURIBOR seeks to measure.

Further details on the calculation methodology for EURIBOR, including the factors contributing to a change in the EURIBOR rate can be found in the Blueprint for the Hybrid Methοdology for the Determination of EURIBOR (https://www.emmi-benchmarks.eu/benchmarks/euribor/methodology/)as well as in the abovementioned Benchmark Determination Methodology for EURIBOR.

Current and historical EURIBOR rates are available at the following address:

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 Themis 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 Themis will apply to the credit facility for that period, shall be ECB Base Rate = zero (0) plus margin.

Bank Of Cyprus (BOC) Base Rates – for credit facilities in Euro

1.  BOC's Base Rate (BBR)

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

BOC’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:

European Central Bank Base Rate (ECB Base Rate)

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

Bank of Cyprus Interest Rate Calculation Methodology

2.  BOC's Business Base Rate / Base Rate for Commercial Facilities (BBBR)

Bank of Cyprus Interest Rate Calculation Methodology

3.  BOC's Housing Base Rate / Base Rate for Housing Loans (ΒHBR)

Bank of Cyprus Interest Rate Calculation Methodology

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

[1] TARGET is the Trans‐European Automated Real‐time Gross Settlement Express Transfer System. The Eurosystem maintains TARGET2, which is the second generation of TARGET and is a real‐time gross settlement system. References to “TARGET” should be read with respect to the euro system’s TARGET2 system. ‘TARGET Day’ is a day on which the TARGET system is operating.