RegStream

Communication Department

PRESS RELEASE

Madrid, 1 March 2023

The main reference index of mortgage loans (one- year Euribor) rises to 3. 534% in February

The one-year Euribor index, which is used as the main reference to set the interest rate on mortgage loans granted by Spanish banks, rose in February to 3. 534% from 3. 337% the previous month. Taking the last 12 months as a reference, the index registered an increase of 3,869 points.

Evolution of the Euribor to one year in the last 12 months

1

On February 1, 2021, the Bank of Spain extended the monthly dissemination of official interest rates, by including the indices based on different Euribor terms (one week, one month, three months and six months) established by Order ETD/699/2020, in order to increase the official interest rate alternatives that entities have, both for use in the granting of loans and for inclusion as substitutes in such contracts1.

Additionally, in June 2021, the Bank of Spain began the publication of the official reference interest rate based on the €STR, as established by Order ETD/699/2020, following the publication of Guideline (EU) 2021/5652 of the European Central Bank (ECB), which specified the preparation (through the use of historical information on the daily values of the €STR) and the dissemination of this interest rate. This new benchmark, the determination of which has been specified by the Bank of Spain3, is defined as the value of the average compound interest rate at different maturities (one week, one month, three months, six months and 12 months) on the last working day of the month for the purposes of TARGET2, which is prepared and disseminated by the ECB.

Official reference interest rates for variable-rate mortgage loans 4

February 2023

Euribor to a week

Euribor to one month

Euribor to three months

Euribor to six months

Euribor to one year

Five-year Interest Rate Swap (IRS)

Reference interest rate based on the Euro short-term rate (€STR) to one week

Reference interest rate based on the Euro short-term rate (€STR) to one month

Reference interest rate based on the three-month Euro short-term rate (€STR)

Reference interest rate based on the six-month Euro short-term rate (€STR)

Reference interest rate based on the euro short-term rate (€STR) over one year

Míbor (One-year interbank rate)

2,297 %

2,369 %

2,640 %

3,135 %

3,534 %

3,061 %

2,399 %

2,215 %

1,889 %

1,297 %

0,415 %

3,534 %

1 Order ETD/699/2020, of 24 July, modifies Article 27 of Order EHA/2899/2011, of 28 October, on transparency and protection of the customer of banking services, extending the list of official interest rates and empowering the Bank of Spain to establish its definition and determination process.

2 Guideline (EU) 2021/565 describes the methodology used by the ECB in calculating the compound rates based on the €STR, determining for its calculation the use of the historical information of the daily values of the €STR and its obtaining, at different terms, through the calculation of the average of the observed data of the €STR.

3 Circular 3/2021, of 13 May, amends Annex 8 of Circular 5/2012, specifying the process for determining this new official interest rate.

4 Calculated according to the definition of Circular 5/2012, of June 27, of the Bank of Spain, to credit institutions and payment service providers, on transparency of banking services and responsibility in the granting of loans, in development of the provisions of Order EHA/2899/2011, of October 28, on transparency and protection of the customer of banking services.

2

These official reference interest rates are valid from their publication in the BOE, which normally occurs a few days after their dissemination by the Bank of Spain.

As for the mibor, Order ETD/699/2020 eliminates it from the list of official interest rates, although it maintains this character for operations formalized prior to January 1, 2000. For this reason, the Banco de España will continue to publish it monthly in its electronic headquarters and in the Official State Gazette5.

All other interest rates

(i)

the rate of internal yield in the secondary market of public debt of the term between two and six years will be published monthly and will take the data of the RODE index "Public Debt from 2 to 6 years (S)" that is calculated by Sociedad de Bolsas, S. A. , belonging to Bolsas y Mercados Españoles, and published on the BME Renta Variable website from May 2021; and the average rate of mortgage loans for more than three years, for the acquisition of free housing, granted by credit institutions in Spain and the average rate of housing loans between one and five years granted by credit institutions in the euro zone will be updated, around the 20th of this month, in Table 19. 1 of the Statistical Bulletin.

(ii)

Since 1 November 2013, the Bank of Spain stopped publishing the Active Reference Rate of Savings Banks -ECSC Indicator- and the average rates of mortgage loans for more than three years for the acquisition of free housing from banks and savings banks in accordance with current legislation7. The references to these rates have been replaced8 by the replacement benchmark or rate provided for in the contract.

5 In accordance with the provisions of the single transitional provision of Order EHA/2899/2011, of 28 October, on transparency and protection of bank customers, and in the fourth provision of Circular 5/2012, introduced by Circular 1/2021.

6 Calculated according to the definition of Circular 5/2012, of 27 June, of the Bank of Spain, to credit institutions and payment service providers, on transparency of banking services and responsibility in the granting of loans, in development of the provisions of Order EHA/2899/2011, of 28 October, on transparency and protection of the customer of banking services.

7 In accordance with the provisions of Order EHA/2899/2011, of 28 October, on transparency and protection of banking services customers.

8 In accordance with Law 14/2013 of 27 September 2013 on support for entrepreneurs and their internationalisation; Fifteenth additional provision. Transitional regime for the disappearance of indices or reference interest rates.

3

In the event that there is no substitute rate in the contract, or in case this is one of the indices or rates that disappear, the replacement will be made by the official interest rate called "average rate of mortgage loans for more than three years, for the acquisition of free housing, granted by credit institutions in Spain", applying a differential equivalent to the arithmetic mean of the differences between the disappearing rate and the one mentioned above, calculated on the basis of the data available between the date of award of the contract and the date on which the replacement of the rate actually occurs. The differential applicable in each case can be calculated using the simulator published for this purpose in the Banking Customer Portal.

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For further information: Tel. +34 91 338 5044 / 6097 / 5318 Fax +34 91 338 5203 www. Bde. en Email: comunicacion@bde. is 4