Euribor, the acronym for Euro Interbank Offered Rate, are the reference figures, published daily, where a considerable number of European banks disclose the interest with which they make loans to other banks, in a relatively short period of time. The interest rate, it should be noted, is a kind of payment that the creditor receives for making a certain amount of money available to another person, which may increase according to the time that passes before the debtor completely cancel the sum of money.. The Euribor was born as a guide for banks, where the rates at which interest would be quoted at different terms would be established.
Euribor figures are only applied to banks in the European Union, due to the policies of keeping the same currency around all the countries that belong to this group. These are published in the short, medium and long term, being as follows: annual, 9 months, 6 months, 3 months, 1 month, 3 weeks, 2 weeks, 1 week and daily. This is important when reviewing the various bank and mortgage loans. The values, since 1996, it should be noted, have fallen transcendentally, reaching, in 2016, negative values; This decrease would imply that the lenders or the banking entities must pay the interest to those who hold the credit titles.
Every day, before 10:45 am, the banks that participate in the valuation must send the figures to which their interests are operating. This is achieved through the “Trans-European Automated Real-Time Gross-Settlement Express Transfer System”, so that at 11:00 am, the EMMI, which is in charge of performing the calculations. The final result is rounded to 3 decimal places.
