Scania Cv Ab

Total Page:16

File Type:pdf, Size:1020Kb

Scania Cv Ab BASE PROSPECTUS 13 June 2018 SCANIA CV AB (publ) (incorporated with limited liability under the laws of Sweden) €7,000,000,000 Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by SCANIA AB (publ) (incorporated with limited liability under the laws of Sweden) On 23 November, 2001, Scania CV AB (publ) (the Issuer) established a Euro Medium Term Note Programme (the Programme) and issued a Base Prospectus on that date describing the Programme. Any Notes (as defined below) issued under the Programme on or after the date of this Base Prospectus are issued subject to the provisions described herein. This does not affect Notes issued prior to the date of this Base Prospectus. Under this Programme the Issuer may from time to time issue non-equity securities in the meaning of Article 22 no. 6(4) of the Commission Regulation (EC) No. 809/2004 of 29 April, 2004 (the Notes) denominated in any currency agreed between the Issuer and the relevant Dealer (as defined below). The payments of all amounts due in respect of the Notes will be unconditionally and irrevocably guaranteed by Scania AB (publ) (the Guarantor). The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed €7,000,000,000 (or its equivalent in other currencies calculated as described in the Programme Agreement described herein), subject to increase as described herein. The Notes may be issued on a continuing basis to one or more of the Dealers specified under “Overview of the Programme” and any additional Dealer appointed under the Programme from time to time by the Issuer (each a Dealer and together the Dealers), which appointment may be for a specific issue or on an ongoing basis. References in this Base Prospectus to the relevant Dealer shall, in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all Dealers agreeing to purchase such Notes. An investment in Notes issued under the Programme involves certain risks. For a discussion of these risks see “Risk Factors”. Application has been made to the Commission de Surveillance du Secteur Financier (the CSSF) in its capacity as competent authority under the Luxembourg Act dated 10 July, 2005 on prospectuses for securities (the Prospectus Act 2005) to approve this document as a base prospectus. By approving this Base Prospectus the CSSF assumes no responsibility for the economic and financial soundness of the transactions contemplated by this Base Prospectus or the quality or solvency of the Issuer in accordance with Article 7(7) of the Prospectus Act 2005. Application has also been made to the Luxembourg Stock Exchange for Notes issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange’s regulated market and to be listed on the Official List of the Luxembourg Stock Exchange. This Base Prospectus will be available on the website of the Luxembourg Stock Exchange (www.bourse.lu). References in this Base Prospectus to Notes being listed (and all related references) shall mean that such Notes have been admitted to trading on the Luxembourg Stock Exchange’s regulated market and have been admitted to the Official List of the Luxembourg Stock Exchange. The Luxembourg Stock Exchange’s regulated market is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU). The requirement to publish a prospectus under the Prospectus Directive (as defined under “Important Information” below) only applies to Notes which are to be admitted to trading on a regulated market in the European Economic Area (the EEA) and/or offered to the public in the EEA other than in circumstances where an exemption is available under Article 3.2 of the Prospectus Directive (as implemented in the relevant Member State(s)). References in this Base Prospectus to Exempt Notes are to Notes for which no prospectus is required to be published under the Prospectus Directive. The CSSF has neither approved nor reviewed information contained in this Base Prospectus in connection with Exempt Notes. Notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche (as defined under “Terms and Conditions of the Notes”) of Notes will (other than in the case of Exempt Notes, as defined above) be set out in a final terms document (the Final Terms) which will be filed with the CSSF. Copies of Final Terms in relation to Notes to be listed on the Luxembourg Stock Exchange will also be published on the website of the Luxembourg Stock Exchange (www.bourse.lu). In the case of Exempt Notes, notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche will be set out in a pricing supplement document (the Pricing Supplement). The Programme provides that Notes may be listed, or admitted to trading, as the case may be, on such other or further stock exchanges or markets as may be agreed between the Issuer, the Guarantor and the relevant Dealer. The Issuer may also issue unlisted Notes and/or Notes not admitted to trading on any market. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or any U.S. State securities laws and may not be offered or sold in the United States or to, or for the account or the benefit of, U.S. persons as defined in Regulation S under the Securities Act unless an exemption from the registration requirements of the Securities Act is available and in accordance with all applicable securities laws of any state of the United States and any other jurisdiction. The Issuer, the Guarantor and the Programme have been rated BBB+ (long term borrowing) by Standard & Poor’s Credit Market Services Europe Limited (Standard & Poor’s). Standard & Poor’s is established in the European Union and is registered under Regulation (EC) No. 1060/2009 (as amended) (the CRA Regulation). As such, Standard & Poor’s is included in the list of credit rating agencies published by the European Securities and Markets Authority (ESMA) on its website (at http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) in accordance with the CRA Regulation. In general, European regulated investors are restricted from using a rating for regulatory purposes unless such ratings are issued by a credit rating agency established in the European Union and registered under the CRA Regulation (and such registration has not been withdrawn or suspended), subject to transitional provisions that apply in certain circumstances whilst the registration application is pending. Tranches of Notes to be issued under the Programme will be rated or unrated. Where a Tranche of Notes is to be rated, such rating will not necessarily be the same as the rating assigned to the Programme. Where a Tranche of Notes is rated, the applicable rating(s) will be specified in the relevant Final Terms. Whether or not a rating in relation to any Tranche of Notes will be treated as having been issued by a credit rating agency established in the European Union and registered under the CRA Regulation will be disclosed in the relevant Final Terms (or Pricing Supplement, in the case of Exempt Notes). A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. Please also refer to “Ratings of the Notes” in the “Risk Factors” section of this Base Prospectus. Amounts payable under the Notes may be calculated by reference to one or more benchmarks (the Programme Benchmarks) for the purposes of Regulation (EU) No. 2016/1011 of the European Parliament and of the Council of 8 June 2016 (the Benchmarks Regulation). In this case, a statement will be included in the applicable Final Terms (or Pricing Supplement, as the case may be) as to whether or not the relevant administrator of the relevant Programme Benchmark is included in ESMA’s register of administrators under Article 36 of the Benchmarks Regulation. Arranger Deutsche Bank Dealers BNP PARIBAS Citigroup Danske Bank Deutsche Bank DNB Handelsbanken Capital Markets HSBC ICBC ING Mizuho Securities Morgan Stanley NatWest Markets Nordea SEB Standard Chartered Bank Swedbank AB 2 IMPORTANT INFORMATION This Base Prospectus comprises a base prospectus in respect of all Notes other than Exempt Notes issued under the Programme for the purposes of Article 5.4 of the Prospectus Directive. When used in this Base Prospectus, “Prospectus Directive” means Directive 2003/71/EC (as amended), and includes any relevant implementing measure in a Member State of the EEA. The Issuer and the Guarantor accept responsibility for the information contained in this Base Prospectus and the Final Terms for each Tranche of Notes issued under the Programme. To the best of the knowledge of the Issuer and the Guarantor (each having taken all reasonable care to ensure that such is the case) the information contained in this Base Prospectus is in accordance with the facts and contains no omission likely to affect its import. This Base Prospectus is to be read in conjunction with all documents which are deemed to be incorporated in it by reference (see “Documents Incorporated by Reference”). This Base Prospectus shall be read and construed on the basis that those documents are incorporated and form part of this Base Prospectus. The Dealers have not independently verified the information contained herein.
Recommended publications
  • B. Recent Changes in the Financial Secto R
    - 21 - References Calvo, Gullermo A.,1983, “Staggered Prices in a Utility-Maximizing Framework,” Journal of Monetary Economics, Vol. 12(3), 383–398. Gali, Jordi, and Mark Gertler, 1999, “Inflation Dynamics: A Structural Econometric Analysis,” Journal of Monetary Economics, Vol. 44(2), 195–222. Kara, Amit, and Edward Nelson, 2004, “The Exchange Rate and Inflation in the U.K.,” CEPR Discussion Papers No. 3783. Roberts, John M.,1995, “New Keynesian Economics and the Phillips Curve,” Journal of Money, Credit, and Banking, Vol. 27(4), 975–984. Walsh, Carl E., 2003, Monetary Theory and Policy, 2nd Edition, Cambridge, The MIT Press. - 22 - 1 III. FINANCIAL SECTOR STRENGTHS AND VULNERABILITIES—AN UPDATE A. Introduction 1. This chapter reports on strengths and vulnerabilities that may have developed in the financial system since the time of the Latvia Financial System Stability Assessment (IMF Country Report No. 02/67), and discusses measures available to the authorities for further strengthening of the system. The FSSA found that the banking system was well capitalized, profitable and liquid. It was “fairly resilient” to interest rate increases, rapid credit expansion and possible withdrawal of nonresident deposits. The FSSA recommended continued vigilance by banks and the Financial and Capital Markets Commission (FCMC) to ensure that new vulnerabilities did not develop in these areas. Nonbank financial institutions were judged not large enough to be a source of systemic risk. Supervision and regulation were judged to be robust. 2. The present assessment is based mainly on an analysis of financial soundness indicators, including macroeconomic indicators such as inflation, and on stress tests of the financial system.
    [Show full text]
  • Reform of Interest Rate Benchmarks for Q4 2019
    Annex 1 Results of Survey on Reform of Interest Rate Benchmarks for Q4 2019 1. Hong Kong banking sector’s exposures referencing LIBOR (LIBOR exposures) (HK$ trillion, as at end-September 2019) Assets Liabilities Derivatives Total amount of LIBOR exposures (note) $4.5 $1.6 $34.6 as a % of total assets or liabilities denominated in 30% 11% N/A foreign currencies LIBOR exposures which will mature after end-2021 $1.5 $0.5 $16.1 of which without adequate fall-back $1.4 $0.5 $14.7 outstanding amount as a % of total LIBOR assets, liabilities or derivatives 33% 32% 46% Note: Includes exposures referencing LIBOR in five currencies (i.e. USD, EUR, GBP, JPY and CHF), as well as benchmarks calculated based on LIBOR, including Singapore Dollar Swap Offer Rate (SOR), Thai Baht Interest Rate Fixing (THBFIX), Mumbai Interbank Forward Offer Rate (MIFOR) and Philippine Interbank Reference Rate (PHIREF). 2. Hong Kong banking sector’s exposures referencing HIBOR (HIBOR exposures) (HK$ trillion, as at end-September 2019) Assets Liabilities Derivatives Total amount of HIBOR exposures $4.7 $0.2 $12.2 as a % of total assets or liabilities denominated in HKD 49% 2% N/A 3. AIs’ preparation for transition to alternative reference rates (ARRs) Key components in AIs’ preparatory work for transition to ARRs % AIs having the component in place Establishment of a steering committee and/or appointment of a 63% senior executive for overseeing the preparation for transition Development of a bank-wide transition plan 38% Quantification and monitoring of LIBOR exposures 48% Impact assessment across businesses and functions 42% Identification and evaluation of risk associated with the transition 38% Identification of affected IT systems and development of a plan to 39% upgrade these systems Identification of affected internal models and development of a plan 36% to modify these models Development of a plan to introduce ARR products 28% Development of a plan to reduce LIBOR exposures 25% Development of a plan to renegotiate LIBOR-linked contracts 24% 4.
    [Show full text]
  • Eurodollar Futures, and Forwards
    5 Eurodollar Futures, and Forwards In this chapter we will learn about • Eurodollar Deposits • Eurodollar Futures Contracts, • Hedging strategies using ED Futures, • Forward Rate Agreements, • Pricing FRAs. • Hedging FRAs using ED Futures, • Constructing the Libor Zero Curve from ED deposit rates and ED Fu- tures. 5.1 EURODOLLAR DEPOSITS As discussed in chapter 2, Eurodollar (ED) deposits are dollar deposits main- tained outside the USA. They are exempt from Federal Reserve regulations that apply to domestic deposit markets. The interest rate that applies to ED deposits in interbank transactions is the LIBOR rate. The LIBOR spot market has maturities from a few days to 10 years but liquidity is the greatest 69 70 CHAPTER 5: EURODOLLAR FUTURES AND FORWARDS Table 5.1 LIBOR spot rates Dates 7day 1mth. 3mth 6mth 9mth 1yr LIBOR 1.000 1.100 1.160 1.165 1.205 1.337 within one year. Table 5.1 shows LIBOR spot rates over a year as of January 14th 2004. In the ED deposit market, deposits are traded between banks for ranges of maturities. If one million dollars is borrowed for 45 days at a LIBOR rate of 5.25%, the interest is 45 Interest = 1m × 0.0525 = $6562.50 360 The rate quoted assumes settlement will occur two days after the trade. Banks are willing to lend money to firms at the Libor rate provided their credit is comparable to these strong banks. If their credit is weaker, then the lending bank may quote a rate as a spread over the Libor rate. 5.2 THE TED SPREAD Banks that offer LIBOR deposits have the potential to default.
    [Show full text]
  • Results on the FISIM Tests on Maturity and Default Risk
    SNA/M1.13/02 8th Meeting of the Advisory Expert Group on National Accounts, 29-31 May 2013, Luxembourg Agenda item: 2 Topic: FISIM Introduction During 2011/2012, tests were carried out in Europe on the inclusion/exclusion of maturity and credit default risk, as recommended by the European Task force on FISIM. Based on the results of these tests the EU Directors of Macro-economic Statistics (DMES) decided, in November 2012, to keep the present FISIM allocation method. This means that, in the 2010 ESA, a single reference rate based on inter-bank loans and deposits will continued to be applied, and that the default risk will not be excluded from FISIM. The ISWGNA Task Force on FISIM assessed the report of the European Task force based on a note by the ISWGNA containing a summary of the results of the FISIM-exercise, as conducted by the EU countries and two non-EU respondents. The summary also includes the main issues related to the debate on credit default risk. Guidance on documentation provided The final report of the ISWGNA FISIM Task Force. Main issues to be discussed The AEG is asked to provide opinions on the following recommendations made in the report: • For international trade in FISIM: FISIM should be calculated by at least two groups of currencies (national and foreign currency). • The reference rate for a specific currency need not be the same for FISIM providers resident in different economies. Although they should be expected, under normal circumstances, to be relatively close and so national statistics agencies are encouraged to use partner country information where national estimates are not available.
    [Show full text]
  • EURIBOR Reform
    10th September 2019 Important Disclaimer: The following is provided for information purposes only. It does not constitute advice (including legal, tax, accounting or regulatory advice). No representation is made as to its completeness, accuracy or suitability for any purpose. Recipients should take such professional advice in relation to the matters discussed as they deem appropriate to their circumstances. Frequently Asked Questions: EURIBOR reform This Frequently Asked Questions (“FAQ”) document, which may be updated from time to time, contains information regarding the EURIBOR benchmark reforms. 1. What is EURIBOR? The Euro Interbank Offered Rate (EURIBOR) is a daily reference rate published by the European Money Markets Institute (EMMI). 2. What is happening to the EURIBOR benchmark methodology? EMMI is reforming the EURIBOR benchmark by moving to a ‘hybrid’ methodology and reformulating the EURIBOR specification. The hybrid EURIBOR methodology is currently being gradually implemented (see Question 10 for further information). In Q18 of the EMMI - EURIBOR questions and answers, EMMI describes the hybrid methodology (described further in Q6 below) as a, “robust evolution of the current quote-based methodology”. EMMI has reformulated the EURIBOR specification, separating the Underlying Interest from the benchmark methodology, in order to clarify the former. EURIBOR's “Underlying Interest” is: “the rate at which wholesale funds in euro could be obtained by credit institutions in the EU and EFTA countries in the unsecured money market.” (https://www.emmi-benchmarks.eu/euribor- org/about-euribor.html)”. In Q18 of the EMMI - EURIBOR questions and answers, EMMI states that EURIBOR reform “does not change EURIBOR’s Underlying Interest, which has always been seeking to measure banks’ costs of borrowing in unsecured money markets”.
    [Show full text]
  • Reference Rates
    Reference Rates Recent History 2013 • International Organization of Securities Commissions published a set of principles for financial benchmarks stating that benchmark rates should be: • Anchored in observable transactions entered into at arm’s length between buyers and sellers • Resistant to manipulation through proper structure, governance, oversight, and control • Based on prices, rates, indices or values formed by the competitive forces of supply and demand • Financial Stability Oversight Council recommended that U.S. regulators cooperate with foreign regulators, international bodies, and market participants to: • Promptly identify alternative interest rate benchmarks • Develop a plan to accomplish a transition to new benchmarks • Promote a smooth and orderly transition to alternative benchmarks 2014 • Financial Stability Board published proposals, plans, and timelines for: • The reform and strengthening of existing major interest rate benchmarks • Additional work on the development and introduction of alternative benchmarks • Development of a plan to accomplish a transition to new benchmarks 2017 • Financial Conduct Authority (FCA), the regulator of LIBOR, communicated that the FCA: • Had to exert significant pressure to hold banks on LIBOR panels • Was seeking a voluntary agreement with submitting banks to stay on the panel until the end of 2021 • Will not compel LIBOR banks to provide submissions beyond 2021 LIBOR and Financial Stability • USD LIBOR is estimated to be referenced in ~$200 trillion worth of financial contracts •
    [Show full text]
  • What Drove the 6-Month Vilibor During the Late-2000’S Economic Crisis?
    WHAT DROVE THE 6-MONTH VILIBOR DURING THE LATE-2000’S ECONOMIC CRISIS? Sigitas Šiaudinis Lietuvos bankas Gedimino pr. 6 LT-01103 Vilnius E-mail: [email protected] The paper* investigates the drivers of the litas interbank reference rate Vilibor and its spread to Euribor in the second half of the 2000s. The investigation focuses on 6-month indices. The interest rates on loans to Lithuanian corporations and households are largely linked to the 6-month Vilibor or Euribor, depending on the currency of denomination. The rise in the Vilibor significantly higher than Euribor imposed additional interest burden on the borrowers in litas during the prolonged period of stress in 2007-09. This contributed to an increase in the share of euro-denominated loans to predominance and fuelled discussions on the reasonability of the quote-based Vilibor reference rate under a currency peg to the euro. The paper offers some evidence that the 6-month Vilibor – as a reference rate for S. Šiaudinis during the Late-2000’s Economic What Drove the 6-month Vilibor Crisis? the bulk of litas retail loans – was determined by the factors beyond a mere equilibration of the litas 5 money market. Our analysis supports the view that, during the aforementioned period of stress and subsequent moderation, the domestic banking sector as a whole steered the 6-month Vilibor and its spread to Euribor to link litas lending rates to retail deposit rates, while also managing bank exposure to the euro. Keywords: Vilibor; Euribor; the litas; interbank market; interest rate spread; exposure to the euro.
    [Show full text]
  • Interest Rate Benchmark Reform in Japan
    January 30, 2020 Bank of Japan Interest Rate Benchmark Reform in Japan Speech at the Kin′yu Konwa Kai (Financial Discussion Meeting) Hosted by the Jiji Press AMAMIYA Masayoshi Deputy Governor of the Bank of Japan (English translation based on the Japanese original) 0 Introduction Good afternoon, everyone. It is my pleasure to have the opportunity to speak to you today about the interest rate benchmark reform. The term "interest rate benchmark" may not sound familiar to those who are not engaged in financial businesses. It refers to a rate that reflects the prevailing market rates and serves as the base rate when determining the price of financial transactions. The most famous and widely used interest rate benchmark around the world is the London Interbank Offered Rate, or LIBOR, which is calculated based on the interest rates of interbank transactions in London. LIBOR is presently published for seven tenors ranging from overnight to 12 months, and for five currencies: the U.S. dollar (USD), British pound (GBP), Euro (EUR), Swiss franc (CHF), and Japanese yen (JPY). There are other interest rate benchmarks based on interbank offered rates, such as TIBOR, which is the Japanese yen interest rate benchmark published in Tokyo, and the EURIBOR, which is the Euro benchmark published in the Euro area. Recently, we have also seen the publication for major currencies of overnight interest rate benchmarks called "risk-free rates," which are literally interest rates that are not affected by credit risk. Interest rate benchmarks are actually used in large volume and a broad range of financial transactions including loans, bonds, and derivatives (Figure 1).
    [Show full text]
  • Update on Reference Rate Reforms in the Euro Area
    Box 2 Update on reference rate reforms in the euro area Sound benchmarks are necessary for the efficient functioning of the financial system. Benchmark rates are important because of their anchoring role for contracts in financial markets. In addition, benchmark rates play a pivotal role in the operationalisation and monitoring of the transmission of the ECB’s monetary policy.17 Benchmark rates have been undergoing in-depth reforms over the last few years. These reforms have been largely guided by a set of principles18 issued by the International Organization of Securities Commissions (IOSCO) in 2013 as a response to the scandals related to the manipulation of LIBOR. As a result of those reforms, market practices and contracts might need to be adapted to a new environment in the years to come. In the euro area, the euro interbank offered rate (EURIBOR), which is the interbank unsecured benchmark in euro published for maturities ranging from 1 week to 12 months, has been gradually reformed in order to anchor its methodology in transactions rather than in quotes. The feasibility of a fully transaction-based methodology was tested by the EURIBOR 17 For example, in August 2016 the European Commission estimated the total value of contracts indexed on EURIBOR at around €180 trillion for derivatives markets and around €1 trillion for mortgages. The figure for EONIA, as reported by the European Commission in June 2017, is in excess of €5 trillion, the majority of which is in the overnight index swap market. 18 “Principles for Financial Benchmarks”, IOSCO, July 2013. Financial Stability Review November 2017 – Financial markets 51 administrator, the European Money Markets Institute (EMMI).
    [Show full text]
  • LIBOR: Eonia and Euribor
    A TALE OF TWO BENCHMARKS THE FUTURE OF EURO INTEREST RATES EXECUTIVE SUMMARY The Euro Interbank Offered Rate (Euribor) and the Euro Overnight Index Average (Eonia) are critically important interest rate benchmarks for the eurozone. Yet they are about to be either replaced or transformed, because neither complies with the recently introduced EU Benchmarks Regulation (BMR). The race is on to reform Euribor so that it complies before the BMR authorisation deadline of 1 January 2020. No attempt will be made to reform Eonia, however, and transition to a new overnight reference rate will be required. European authorities have established an industry working group tasked with recommending alternative euro risk free rates and a plan for adopting them. The European Central Bank (ECB) is simultaneously developing Euro Short-Term Rate (ESTER), a new euro unsecured overnight interest rate, a possible alternative to Eonia and, potentially, to Euribor. While regulators are supportive of the Euribor reform process, its success is not guaranteed. There are scenarios where the volume of transactions in the market which Euribor is meant to reflect prove insufficient even for a hybrid methodology. This could leave the industry needing to adopt (as yet, undefined) new reference rates for new business from as early as January 2020. The disruption could be yet greater if banks need to transition the >$175 trillion stock of outstanding contracts referencing Euribor and Eonia to alternative rates. Preparations are already underway for a transition away from the London Interbank Offered Rate (LIBOR), an equivalent to Euribor for US Dollars and four other major currencies (including EUR-LIBOR), triggered by the FCA’s announcement that it will stop supporting LIBOR after 2021.
    [Show full text]
  • Estimation of Financial Intermediation Services Indirectly Measured in Armenia’S External Accounts1
    IFC - Central Bank of Armenia Workshop on “External Sector Statistics” Dilijan, Armenia, 11-12 June 2018 Estimation of financial intermediation services indirectly measured in Armenia’s external accounts1 Anush Davtyan, Central Bank of Armenia 1 This paper was prepared for the meeting. The views expressed are those of the authors and do not necessarily reflect the views of the BIS, the IFC or the central banks and other institutions represented at the meeting. Estimation of Financial intermediation services indirectly measured in Armenia’s external accounts Anush Davtyan Central Bank of Armenia, Statistics department, External sector statistics division The accurate calculation of Financial intermediation services indirectly measured (FISIM) became a challenging issue during the last decade both for National accounts and the Balance of payments statistics. The estimation of FISIM export by the resident financial institutions of Armenia is regarded as an essential issue, which will both improve the external sector statistics coverage and contribute to the GDP calculation enhancement. The SNA 2008 revision as well as the BPM6 Manual clarified the measurements standards, as well as reviewed the sources and methods of relevant data collection. Despite details provided for both the reference rate selection, and the calculation methods applicable, there still remain a lot of issues with availability of the data required (mainly during FISIM import calculation), the treatment of credit organizations and international financial organizations, the use of appropriate reference rate based on analysis of financial environment in Armenia. Being a small highly dollarized economy makes Armenian interest rate formation subject not only to open market relations but also to other factors difficult to quantify.
    [Show full text]
  • Financial Stability Report 1/2005
    FINANCIAL STABILITY REPORT 1· 2005 ISSN 1691–1202 FINANCIAL STABILITY REPORT 1•2005 ABBREVIATIONS CAR – capital adequacy ratio CIS – Commonwealth of Independent States ECB – European Central Bank EKS – Electronic Clearing System ERM II – Exchange Rate Mechanism II EU – European Union EU10 – countries that joined the EU on May 1, 2004 EU15 – EU countries before May 1, 2004 FCMC – Financial and Capital Market Commission FRS – US Federal Reserve System GAP – repricing gap or difference between interest rate sensitive assets and interest rate sensitive liabilities GDP – gross domestic product LLA – Latvian Leasing Association MFI – monetary financial institution NPLs – non-performing loans OPEC – Organization of the Petroleum Exporting Countries RIGIBID – Riga Interbank Bid Rate RIGIBOR – Riga Interbank Offered Rate ROA – return on assets ROE – return on equity RSA – interest rate sensitive assets RSL – interest rate sensitive liabilities SAMS – Interbank Automated Payment System SDR – Special Drawing Rights US – the United States of America VaR – the maximum expected losses over a certain period of time and with a given probability (Value-at-Risk) Sources: the Central Statistical Bureau of Latvia, the Financial and Capital Market Commission, the Latvian Leasing Association, LURSOFT (Database of the Republic of Latvia Register of Enterprises) and the Bank of Latvia. Charts have been compiled on the basis of data provided by Reuters (Charts 1, 2 and 28), the Bank of Latvia (Charts 3, 5–9, 11, 13– 17, 19–21, 26, 27 and 30–37), the Central Statistical Bureau of Latvia (Charts 3 and 37), the Financial and Capital Market Commission (Charts 4, 10, 12–18, 22–27, 29–31 and 38) and the Latvian Leasing Association (Charts 36, 37, 39 and 40).
    [Show full text]