Euribor

European banks considered that the introduction, in 1999, of the single currency made it necessary to establish a new interbank reference rate within the Economic and Monetary Union: Euribor.

Euribor (Euro Interbank Offered Rate) is the benchmark rate of the large euro money market that has emerged since 1999. It is sponsored by the European Banking Federation, which represents the interests of 5000 banks in 24 Member States of the European Union, Iceland, Norway and Switzerland.

Euribor is the rate at which euro interbank term deposits are offered by one prime bank to another prime bank and is published daily at 11.00 a.m. CET.

Interest rates for mortgages in euros are based on the Euribor. The lenders rate will be a margin over Euribor, generally Euribor +1.25%, but certain lenders may fluctuate on this. Fixed rate mortgages are available at slightly higher interest rates.