Glossary of Terms. Euribor
| Date: November 29, 2008 | Source: Economic @ 21 |
| Category: ECONO-CONCEPTS | |
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Loading ... Euribor is an acronym for "Eur opean I nter b ank O ffered R ate", ie European interbank offered rate.
It is the interest rate at which banks lend money in the euro interbank market. Its value is calculated by the European Banking Federation , using the average prices of 64 major European banks.
This rate applies to transactions between banks in Europe we offer prices of loans that are made each of 64 major European banks, meaning that the percentage rate you pay as a bank when one leaves money .
Euribor is really only one type, but a set of them. Financial institutions use different interest rates depending on the term to which they lend money. Thus one can speak of Euribor to a week, one month or one year. The Euribor a year is normally used as a reference for the mortgage (sometimes using the IRPH or CECA ).
Its value is updated daily and Spain is published in the BOE .
It is a very important indicator of the financial market, since the one year Euribor is, among other things, is the official reference rate most commonly used for loans in Spain from January 1, 2000. Transactions completed before that date used as official reference MIBOR one year, which was the equivalent interbank market in pesetas. Most variable rate mortgages are reviewed EURIBOR because this index recorded minor fluctuations throughout the period of the loan.
The Euribor is only applied on the banks of the Member States of the European Union as part of the Eurozone . The local reference types, such as Paris or Pibor FIBOR Frankfurt joined the Euribor on 1 January of 1999 . In the case of Spain, the Euribor replaced Mibor following the devolution of the Bank of Spain to the European Central Bank .
The value of the 12-month Euribor suffered a significant decline over 2002, taking low values during the next three years (compared to previous years). In the last quarter of 2005, its value began to steadily escalated throughout 2006 he returned to values similar to those taken before this fall. On June 6, 2008 was one of the most spectacular rises up three tenths from the previous day's value and achieve the value of 5417%. The record in the Euribor was the day on October 2 that managed to reach the 5.526%.
The schedule for setting the daily changes of Euribor is at 11:00 hours.
May 21, 2009 at 11:23
[...] Unless the twelve-month Euribor, the main benchmark in the calculation of interest from [...]