What is and how the Euribor works?

We often read in the main media, that the Euribor has fallen and is at a minimum daily rate, as it had not happened for years. This is changing and affects all citizens, especially those in the Eurozone. But, how does the Euribor work?

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This figure, which when it is low is positive for all those who are paying a mortgage, also indicates many things beyond the minimum quote. Eberibor officially means: "European Interbank Offered Rate", a European type of interbank offer, that is, It is a type of bank interest that banks mark.

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In addition, the Euribor measures mortgages, that is, the interest rate that banks receive when they are offered. The Euribor is an interest rate that only applies to banks in the European Union.

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The value of the 12-month Euribor has fallen sharply since 2002, so that Spanish families who are paying a mortgage are almost obliged to be aware of this index that will mark the amount of money they pay monthly.

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The factors that most affect the rise or fall of the Euribor are: - The interest fixed by the European Central Bank, so all other banks in Europe must comply with the regulations they request at the ECB.- The availability of funds to provide them . The non-availability of liquidity is a problem that can make the bank not available to lend to users. - The solvency of the recipient of the funds, is one of the factors that most experts examine.

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For all those who are doubting about whether the Euribor will go higher, experts say that it is complicated to rise higher and that it would be historic, but that it is a variable interest rate and can be unbalanced at any time.