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Euribor rates rise after Cyprus rejects bailout terms
March 20, 2013 / 10:23 AM / 5 years ago

Euribor rates rise after Cyprus rejects bailout terms

FRANKFURT, March 20 (Reuters) - Euribor bank-to-bank lending
rates rose on Wednesday after the Cypriot parliament rejected
the bailout terms and threw efforts to rescue the debt-ridden
island into disarray.
    The euro zone struck a deal on Saturday to hand Cyprus a
bailout worth 10 billion euros ($13 billion), but demanded
depositors in its banks forfeit some money to stave off
bankruptcy despite the risks of a wider bank run. 
    ECB Executive Board member Joerg Asmussen was quoted as
saying on Wednesday that banks in Cyprus are not solvent without
them being quickly recapitalised through a bailout, and the ECB
can only provide liquidity to solvent banks.
    On Wednesday, the three-month Euribor rate,
traditionally the main gauge of unsecured bank-to-bank lending,
rose to 0.210 percent from 0.207 percent.
    The six-month rate rose to 0.335 percent from 0.330 percent,
while the one-week rate ticked up to 0.083 percent
from 0.080 percent. The overnight Eonia rate inched
down to 0.064 percent from 0.069 percent.
    Dollar-priced bank-to-bank Euribor lending rates
  were higher, with three-month rates
rising to 0.51400 percent from 0.50700 percent and one-week
rates increasing to 0.32400 percent from 0.31800 percent.
    Excess liquidity in the euro zone banking
system is at around 410 billion euros, still high enough to keep
market rates below the ECB's refinancing rate.
    Draghi said in February he does not expect market rates to
face upward pressure until excess liquidity in the banking
sector falls below 200 billion euros.
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 0900 GMT.
    * For a table of the latest Euribor fixings for terms of one
week to one year, double click on 
    * For a table of the previous day's fixings of EONIA swap 
rates, which show market expectations for future overnight 
lending rates, double click on 
    * For graphs of historic Euribor and EONIA swap rates, right
click on the links in angle brackets below, and select 'Related 
    1 week       
    2 week       
    3 week       
    1 month      
    2 month      
    3 month      
    4 month      
    5 month      
    6 month      
    7 month      
    8 month      
    9 month      
    10 month    
    11 month    
    1 year       

    ($1 = 0.7760 euros)

 (Reporting by Frankfurt newsroom)

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