Euribor

The Euribor is the reference interbank rate communicated daily by the European Money Markets Institute, as the average of the interest rates at which various banks offer interbank term deposits in euros.

How is Euribor calculated?

It is calculated by Global Rate Set System Ltd, a company specializing in the administration of reference indices, called benchmarks.

In practice, the Euribor calculation is the simple average of the rates provided by banks in a given cluster, after excluding the highest and lowest 15% of the rates received and rounded to three decimal places.

What is Euribor used for?

First of all, there are several rates, not just one. Euribor rates are a benchmark for short-term rates.

Among the various rates, the most well-known is undoubtedly the six-month rate. It is generally used as a reference for calculating interest on variable-rate mortgages.

Where is it used?

An indicator of the short-term cost of money, the rate is used to index interest payments on financial instruments with variable interest rates. The rate is typically used for indexed bonds or mortgages.

What are the deadlines?

The rate deadlines are at:

one week

2 weeks

3 weeks

one month

2 months

3 months

4 months

5 months

6 months

7 months

8 months

9 months

10 months

11 months

a year