Loan interest rates

Euro interest-swap ¹

¹ Euro interest-swap

The Euro interest swap rate published by the Refinitiv corresponding to the period until the end of the fixing period.

² Enviroment factor, EUR (Only for Mortgage loan)

Enviroment factor for EUR currency mortgage loans. The environment risk factor for loans denominated in EUR currency depends on Latvia's historical long-term sovereign credit-ratings assigned by the Moody's international rating agency. The 2-year history of Reuters' euro bond index corresponding to Latvia's historical long-term sovereign credit-rating are used, taking 5 reference dates at 6-month intervals from the date of setting/recalculating the environment risk factor. On each reference date the interest rate difference between Reuters' 7-year euro bond index, which corresponds to Latvia's historical long-term sovereign credit-rating, and the relevant 'zero risk' 7-year interest rate swap (IRS) is estimated. The environment risk factor is equivalent to the arithmetic average of those 5 intermediate results.

Environment factor, EUR is also applied to mortgage loans which were LVL currency mortgage loans until 01.01.2014 and for which the loan currency was changed from lats to euros upon adoption of the euro in Latvia.

³ Mortgage Base Rate

Mortgage Base Rate is base interest rate applied by Swedbank on a daily basis for loans denominated in EUR. The Mortgage Base Rate consists of respective period Euribor and the calculated Environment Factor of the date.