AS BlueOrange Bank loan agreements stipulate a borrowing interest rate in two parts – a fixed (permanent) component determined for each client on a case-by-case basis, and a variable component, also known as the base rate. Base rates have historically been tied to so-called benchmark rates, or indices – the most commonly used ones among them being the LIBOR (London Interbank Offered Rate) and the EURIBOR (Euro Interbank Offered Rate).

In 2018, Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (EU Benchmark Regulation) took effect. This regulation specifies the criteria for benchmark rates used in lending and applies to all credit institutions and their clients.

Because the LIBOR no longer complies with regulatory requirements, and will no longer be maintained or published for the Euro currency as of 2022, all agreements between AS BlueOrange Bank and its clients which indicate the EUR LIBOR will switch over to the EURIBOR of equal duration. The new EURIBOR calculation methodology has been approved as compliant with the EU Benchmark Regulation.

We will contact each client individually if these changes apply to their agreements with AS BlueOrange Bank, and will provide detailed information on the procedure for amending relevant arrangements, as well as any steps that have to be taken in this regard.

For more information on the LIBOR, please visit:

https://www.financelatvia.eu/news/ligumos-aizstas-bazes-procentu-likmi-libor

https://www.bank.lv/par-mums/jaunumi/678-raksti/12000-par-etalonlikmju-reformam