Banque Centrale du Luxembourg : Press release -

PRESS RELEASE

Luxembourg, 15 January 2021

Interest rates

The Banque centrale du Luxembourg (BCL) informs that, based on preliminary data, the main interest rates applied by Luxembourg's credit institutions to euro area households and non- financial corporations (NFCs) for their loan and deposit operations have on average evolved as follows in November 2020.

Representative interest rates on new contracts1 - loans and deposits - concluded with households

The variable2 interest rate on mortgage loans granted to households has increased by 1 basis point on a monthly basis to reach 1.36% in November 2020 and the volume of these newly granted loans has decreased by 13 million euros to reach 276 million euros. On a yearly basis, the interest rate has decreased by 7 basis points whereas the volume of newly granted loans has increased by 36 million euros.

The fixed3 interest rate on mortgage loans granted to households has decreased by 1 basis point on a monthly basis to reach 1.26% in November 2020 and the volume of these newly granted loans has decreased by 30 million euros to reach 516 million euros. On a yearly basis, this interest rate has remained unchanged whereas the volume of newly granted loans has increased by 90 million euros.

1 New contracts refer to any new agreement concluded between the household or the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest rate pertaining to the deposit or credit and all renegotiations of existing deposits or credits.

2 Variable interest rate or rate with an initial fixation period inferior or equal to 1 year.

3 Fixed interest rate weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year). This series has been published by the BCL since February 2009 only for methodological reasons linked to the identification of reporting agents.

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PRESS RELEASE

The interest rate on consumer loansthat have an initial fixation period above 1 year and below or equal to 5 years has increased by 17 basis points on a monthly basis to reach 2.77% in November 2020 whereas the volume of newly granted loans has decreased by 7 million euros to reach 21 million euros. On a yearly basis, the interest rate has increased by 5 basis points whereas the volume of new lending has remained unchanged.

The interest rate on households' fixed-termdepositsthat have an initial maturity below or equal to 1 year has decreased by 5 basis points on a monthly basis to reach 2 basis points in November 2020. On a yearly basis, this rate has remained unchanged.

Representative interest rates on new contracts - loans and deposits - concluded with households

7,00

6,00

5,00

4,00

3,00

2,00

1,00

0,00

Eurosystem main refinancing operations	Loans for house purchase - Fixed rate	Loans for house purchase - Floating rate
Loans for consumption	Deposits with agreed maturity

Volume of newly granted loans to households (millions euros)

600

500

400

300

200

100

0

Loans for consumption	Loans for house purchase - Floating rate
Loans for house purchase - Fixed rate

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PRESS RELEASE

Representative interest rates on new contracts1 - loans and deposits - concluded with NFCs

The variable2 interest rate on loans below or equal to 1 million eurosgranted to NFCs has decreased by 2 basis points on a monthly basis to reach 1.49% in November 2020 and the volume of newly granted loans has decreased by 46 million euros to reach 687 million euros. On a yearly basis, this interest rate has decreased by 13 basis points and the volume of newly granted loans has decreased by 63 million euros.

The variable2 interest rate on loans above 1 million eurosgranted to NFCs has decreased by 7 basis points to reach 1.18% during the last reference period. The volume of newly granted loans has increased by 342 million euros to reach 3 661 million euros. On a yearly basis, this interest rate has increased by 12 basis points and the volume of newly granted loans has decreased by 1 131 million euros.

The interest rate on fixed-termdepositsof NFCs with an initial maturity below or equal to 1 year has decreased by 15 basis points on a monthly basis to reach -37 basis points in November 2020. On a yearly basis, this interest rate has decreased by -37 basis points.

Representative interest rates on new contracts - loans and deposits - concluded with non financial

corporations

7,00
6,00
5,00
4,00
3,00
2,00
1,00
0,00
-1,00

Loans above 1 million euros granted to non financial corporations	Eurosystem main refinancing operations
Fixed-term deposits of non financial corporations	Loans below or equal to 1 million euros granted to non financial corporations

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PRESS RELEASE

The tables pertaining to interest rates applied to credit institutions can be consulted and/or downloaded on the BCL's website on the following pages:

http://www.bcl.lu/en/statistics/series_statistiques_luxembourg/03_Capital_markets/index.html

Weighting method

The interest rates applied to new contracts are weighted within the categories of instruments concerned by the amounts of individual contracts. This results from the compilation of national aggregates carried out by reporting credit institutions and by the BCL.

Department International Relations and Communications

Section Communications

Tel. : [phone] ou 4599

E-mail :[e-mail]

www.bcl.lu

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