Bank of Lithuania
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In the opinion of the Bank of Lithuania, when assessing credit agreements concluded with customers, where the creditor is paid variable interest and their calculation is related to a variable (e.g. EURIBOR), it is necessary to first take into account the terms and conditions of a particular agreement and the interest calculation method.

If the agreement provides for an interest calculation method which makes it clear that with a change in variable interest rates changes, the size of the total interest payable changes as well, then it should be treated so in the manner agreed on in the agreement.

For example, if in the agreement it is clearly established that the customer’s interest payable is calculated as the mathematical sum of the fixed margin and a variable (e.g. EURIBOR) and during the conversion the latter variable is negative, the total interest payable should drop by that negative value.