The Euro Interbank Offered Rate (Euribor) is an interest rate based on average of interest rates of a group of 57 European banks that lend money to each other and also govern the interests of cheap mortgages. Interest Euribor rates are calculated daily and public are made at 11: 00 AM Central European time. Euribor was first created on December 30, 1998. On 1 January 1999 was the day in which the Euro was introduced as the currency for those countries that are part of the European Union. In previous years, a large number of types of national reference as PIBOR to (France) and FIBOR (Germany) existed with Euribor are simplicaron these types of interests. On the other hand, the Euribor interest rates come in different maturities: 1, 2 and 3 weeks and 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 months. Funds for interbank lending rate which has no warranty in the euro zone is known as the Eonia rate.
Euribor interest rates are being used as a reference rate for a lot of financial products, e.g. derivatives such as swaps, easy to get mortgages and certain financial loans. Many banks also use as Euribor interest rates to determine their rates on products such as mortgages, savings accounts and loans. Euribor interest rates are important because these rates are the basis of the interest rate or the price of all types of financial products, such as interest rate swaps, interest rate futures, savings accounts and the subrogation of cheap mortgages. Given that the Euribor interest rates are based on agreements between several European banks, the level of fees is determined, firstly, by the supply and demand in the market. However, there are some external factors, such as economic growth and inflation that do not affect the level and status of the types of interest rates created by Euribor. Banks that are part of this select group who are responsible for determine the rates of interest throughout the European Union they come to be banks with greater turnover in the money markets in the euro area. The panel of banks consists of financial institutions with a first-class credit standing, highest standards ethical and an excellent reputation.