LIBOR is the %26quot;London Interbank Offered Rate for Eurodollar Deposits%26quot;.
It is an average of what UK banks pay on short term deposits, but is used as a proxy for a short term interest rate. 30 day LIBOR is what commercial banks pay for a 30 day time deposit denominated in US Dollars. You can look up the current rate on Bloombergs or in the wall st journal. Its a standard term in financing agreeemnts that need a short term interest rate.
Does anyone has the definition of %26quot;30 day LIBOR Rate%26quot; for a Credit Agreement?
A 30-day LIBOR is a temporary loan rate that will increase after 30 days. It is a type of adjustable rate loan. Make sure you know how much it will increase before signing anything.
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