The LIBOR interbank interest rate benchmark will be replaced by EURIBOR

Dear clients

We would like to inform you about changes related to the cancellation of the LIBOR interbank interest rate benchmark. Pursuant to the European Union regulation, in the beginning of 2022, the LIBOR (in EUR) in loan agreements will be replaced by the EURIBOR index. Clients who have concluded such agreements will not be required to take any further actions: we will personally inform the clients about the replacement interest rate index and interest rate reset.

Reasons for changing the interbank interest rate benchmark and the scope of changes:


If the client does not agree that the LIBOR interbank interest rate index (in EUR) in his/her loan agreement be changed to EURIBOR, he/she will have the right to terminate his/her loan agreement with the Bank free of charge and without paying the early repayment fee until 30 December 2021 by refinancing or repaying the loan.

If the client agrees with the above changes, he/she will not be required to take any further actions – on 1 January 2022, the Bank will replace the LIBOR interbank interest rate index in the existing loan agreements with the EURIBOR index for the same period without any additional arrangements.

Detailed information about the benchmark reform is available on the website of the Bank of Lithuania and the website of the Lithuanian Banking Association.
 

Should you have any further questions, contact us by phone at 1813 (+370 37 301 337, for calls from abroad) or by email to kc@sb.lt.
 

Sincerely
Šiaulių Bankas