OREANDA-NEWS. On December 13, 2007 AB SAMPO bankas increased interest rates on time deposits in litas and euros and now they are among the largest interest rates offered in the Lithuanian market, reported the press-centre of AB SAMPO bankas.

Interest on euro-denominated time deposits of 6 months in SAMPO bankas increased by 0,3 percentage points from 3,40% to 3,70%, while interest on deposits of the same maturity denominated in the national currency went up from 4,30% to 5,30% growing as much as by 1,0 percentage point.

"Rise of interest rates in the interbank market of Lithuania was stimulated by growing demand for litas recently experienced by the Lithuanian banking system, increase in inflation and actions of international rating agencies. This is the reason for larger than usual increase of time deposit interest rates by SAMPO," - explains Giedre Geciauskiene, Danske Financial Markets Department Director of SAMPO bankas, adding that after this increase interest rates on time deposits of SAMPO bankas have become one of the largest in the Lithuanian banking market.

Euro-denominated time deposit interest rate of SAMPO bankas augmented by 0,2-0,3 percentage points depending upon maturity, and that of litas-denominated time deposit rose even by 0,9-1,1 percentage points. Interest rates on time deposits in USD remain the same.

The last increase of SAMPO bankas interest rates on time deposits was in October.

At present the Bank is offering its clients another solution which is unique for the savings market of Lithuania and is open to all residents who are willing to conclude time deposit agreements.

In case of future increase of deposit interest rates by SAMPO bankas, from now on interest to depositors who conclude time deposit agreements maturing within 6 and 12 months will be paid on the basis of interest rate applicable on the last day of deposit maturity, rather than according to the interest rate specified in the deposit agreement. If due to economic reasons emerging on the market deposit interest rate does not grow or event starts falling, clients who accept the offer of SAMPO bankas will lose nothing - they will be paid interest according to the current interest rate, i.e. interest rate specified in the agreement.

According to the data of the Association of Lithuanian Banks as of end-Q3 portfolio of time deposits held by Lithuanian residents totalled LTL 11,6 billion after quarterly growth of 7% (LTL 0.74 billion) and annual growth of 32% (LTL 2,79 billion).

By end-October, portfolio of deposits held by residents with AB SAMPO bankas accounted for LTL 728 million or was by 60% larger than last year (LTL 456 million).