Wednesday, May 27, 2015

EURIBOR is the abbreviation for the Euro Interbank Offered Rate. EURIBOR interest rate based on an


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EURIBOR is the abbreviation for the Euro Interbank Offered Rate. EURIBOR interest rate based on an average interest sarasota florida rate at which European banks lend your money to each other. Depending on maturity, there are different types of EURIBOR interest rates from one week to 12 months. For loans with a variable interest rate applicable on 1, 3, 6 and 12-month EURIBOR rate.
Euribor interest rates are the most important reference interest rates on the European money market. Important mainly because they are the basis for pricing interest rate derivatives respectively. products such as interest rate swaps, futures on interest rates, savings accounts with banks, mortgage sarasota florida loans, investment in debt securities (treasury bills, commercial paper and bonds).
EURIBOR and LIBOR are comparable rate, both the average interbank interest rate at which European banks lend your money to each other. The main difference lies in the fact that LIBOR is the average interbank interest rate at which you selected banks on the London money market willing to lend money to each other. Both said the interest rate is calculated for different maturities. One of the main differences is that the LIBOR interest rate quoted in addition to the EUR in other foreign sarasota florida currencies (CHF, USD, JPY, GBP).
Especially we remembered LIBOR in CHF, as was recently done a lot of talk about big losses by the company responsible in that currency suffered as a result of strong strengthening of the Swiss franc, which is just over one year rose by 20 %.
Euribor interest rates are currently at historically lowest level. In the last ten years, the amount of interest rates on 6-month EURIBOR ranged from 5.5% up to 0%. The reason for the low interest rates, the general financial and economic crisis which hit the world economy, especially in this feels in Europe. The evolution of the Euribor interest rates also affect the amount sarasota florida of the ECB's reference rate, set up by the European sarasota florida Central Bank (ECB). The reference rate of the ECB corrected the situation in the financial sector and the overall economic situation in Europe.
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