20.12.2021

Information regarding LIBOR referent interest rates

Respected clients,

The reforms of the reference rates that are basis for defining the variable interest rates and which occur on the financial markets, are one of the biggest reforms on global level, which impose adjustments of the operations for banks and other market participants. In that respect it is necessary for the Bank  to perform efficient transition of the reference rates for which the cease date is announced towards  the new reference rates.

With reference to the above, we would like to mention the fact that the authorized body- Financial Conduct authority (FCA) from Great Briatain has already confirmed that most reference rates that are based on the LIBOR ( London Interbank Offered Rate) will cease to be provided or will no longer be representative by the authorized administrators after the period of 31.12.2021. This includes the LIBOR reference rates for the following currencies: GBP(British Pound), EUR (Libor for EUR), CHF (Swiss Frank) and JPY ( Japanese Yen), as well as the interest rates for 1-week and 2 months USD Libor (United Stated Dollar). These rates, starting from 01.01.2022 will be replaced with the new reference rates.

Stopanska Banka AD Skopje ( SB or the Bank) as a part of the financial system of the country, within its own efforts to be reliable and transparent bank for all clients, has decided to accommodate to the above changes and to use the new reference rates for respective currencies in its contractual obligations with clients. Such activities are in direct interest for the clients and represents the continuity in the maintaining the relationship with the Bank.

In that respect, the changes of the reference rates that are used as a basis for calculation of the final interest rates with the clients, which are subject to the mentioned changes, and which will be valid starting from 01.01.2022, will be replaced with the following rates:

All clients of the Bank who have already concluded and valid  contracts for transactional accounts and / or contracts for term deposits in foreign currency with variable interest rates, where that rate is based on LIBOR reference rate, in case do not agree with the changed referenced rate, have righs to submit written notification to the Bank that they do not agree with the change of the reference rate as described above and may terminate the contract with the Bank.The clients have opportunity to approach any branch of the Bank, any working day during the working hours until 31.01.2022.

If the client does not approach the Bank in the defined term until 31.01.2022 and does not submit written notification to the Bank that does not agree with the replacement of the reference rate as explained above, i.e. does not inform the Bank that  intends to terminate the contract, the Bank will consider that the client is notified, aware and agrees with the change of the reference rate in the contractual agreement with the Bank, performed in the manner as presented in the table above, which will be valid from 01.01.2022 and onward, and the existing contracts will be considered as valid until their termination or maturity.