Property Guides and Information for the Costa del Sol, Spain

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Eurobor Index

EURIBOR and EONIA: The money market reference rates for the euro.

The benchmarks for the money and capital markets in the euro zone are Eurobor and Eonia. Euribor is determined (fixed) by the European Banking Federation (EBF) at about 11:00 each day, Central European Time, and is a filtered average of inter-bank deposit rates offered by a large panel of designated contributor banks (currently more than 50), for maturities ranging from one week to one year.For more information about how the eurobor rate affects your Spanish mortgage read The Mortgage Guide to Spanish Property

Euribor rates are spot rates, i.e. for a start two working days after measurement day. Like US money-market rates, they are Actual/360, i.e. calculated with an exact daycount over a 360-day year.

The shorter rates, i.e. up to 6 months, are usually extremely reliable and tend to precisely reflect real market conditions at measurement time. The actual rate at which banks will lend to one another will, however, continue to vary throughout the day.
Eonia (Euro OverNight Index Average) is an effective overnight rate computed as a weighted average of all overnight unsecured lending transactions in the interbank market, initiated within the euro area by the contributing panel banks.

Eurobor rates benefit from:
A large integrated market with a single currency.
An impressive panel of quoting banks of first class credit standing.
A solid Code of Conduct setting out strict rules for the panel banks.
An independent Steering Committee of market experts which oversees the application of the Code of Conduct and monitors market developments.

These conditions have enabled Eurobor and Eonia to establish themselves as the benchmarks in the euro market.Keep track of the changes in the Euribor: this site allows you to monitor and predict changes to variable interest ratesVisit this site

September 22, 2005 | Category: Finance & Mortgages

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All of the information was researched at the time of writing and publishing these articles and is to our best knowledge correct and up to date. Bright is not responsible for changes that occur through updates in Spanish legislature. Bright is also not responsible for any errors in any of the literature or advice published on this site.