Regulatory Alerts2021-05-17
Circular 3/2021 of the Bank of Spain modifying the definition of the Euro short-term rate (€STR) reference interest rate in Circular 5/2012
The Bank of Spain issued Circular 3/2021 to update the definition of the official reference interest rate based on the Euro short-term rate (€STR) in Circular 5/2012, aligning it with the European Central Bank's new methodology for publishing multi-term €STR composite rates. This modification specifies that the official rate is defined as the multi-term composite rate (for tenors of one week, one month, three months, six months, and twelve months) published by the ECB on the last TARGET2 business day of the month. The circular entered into force the day after its publication to ensure the Bank of Spain could promptly begin publishing these official monthly rates.
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