Press releases

V7083AEV
Brussels, 15 December 1997

Euribor®: THE NEW MONEY MARKET REFERENCE RATE FOR THE EURO

The European Banking Federation (EBF) and ACI, the Financial Markets Association, wish to inform the financial markets that very substantial progress has been made over the last two months on the creation of Euribor® ("EURO Interbank Offered Rate"). The Euribor® is the rate at which euro interbank term deposits will be offered within the EMU zone by one prime bank to another at 11.00 a.m. Brussels time.

The EBF and ACI are pleased to announce that a Code of Conduct, laying down the rules applicable to Euribor® and to the banks which will quote for the establishment of Euribor®, has been finalised and agreed. Through the various national associations this Code has received the full support of practically the entire European Union banking community and this obviously constitutes a tremendous achievement.

This Code of Conduct has three enclosures: a table on the national quotas for the number of panel banks from the different countries joining EMU from its start; rules to apply to the 6 international banks from non-EU countries which will participate in the panel and to up to 4 banks from EU countries which do not participate in EMU from the outset and, finally, rules to apply to the rotation of banks if banking communities from smaller countries, for compelling reasons, wish to nominate more banks to the panel than allowed under their national quota. Such rotation systems as well as the national quotas will be phased out after a start-up period of one year.

The Euribor® will be supervised by a Steering Committee composed of 10 members who will be experienced market practitioners.
"This is a major breakthrough after difficult negotiations" said the Secretary General of the EBF, Mr Nikolaus Bömcke, "and an important step towards a single Euro money market when EMU starts in 1999".

The choice of the screen service provider who will capture, compute and publish the Euribor® will be made very shortly.

The national banking associations of all the Member States have been invited to communicate the names of their banks who will be members of the panel by the end of the year. The international banks will be chosen by the Steering Committee at the latest in June 1998.


For further information, please contact:

EBF:
T. van de Werve (+32 2 508 37 27)

ACI:
H. Konrad, President, Forex Club Deutschland (Tel: + 49 89 37 81 86 34)
J-P. Ravisé, France Association du Forex (Tel: + 33 1 40 22 40 18)
et des Trésoriers de Banques (A.F.T.B.)

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