As from today, the Euro Interbank Market table on the markets page will be replaced with a table containing the Euribor. The new table appears today on page 18, this morning's Markets page.

The Euro Interbank Offered Rate, or Euribor, is the rate at which euro interbank term deposits within the euro zone are offered by one prime bank to another prime bank.

It came into being with the introduction of the euro this January and replaced the Dublin inter bank offered rate (Dibor). It also replaced the national inter bank rates of other participating euro member-states. The new table contains two Euribor rates: Act 365 and Act 360. Act 365 is the rate used for pricing loans denominated in Irish pounds; Act 360 is the correct rate for euro denominated loans.

The Euribor rate is derived from data supplied by a representative panel of prime banks. Each bank provides daily quotes of the rate at which it believes one prime bank is quoting to another prime bank for interbank term deposits within EMU.

The rate is calculated daily by averaging data supplied by each of the 57 banks participating in the striking of the rate. The Euribor is published each day at 11 a.m. The rates published in The Irish Times are those rate applicable to the previous day.

Allied Irish Banks Group Treasury supplies the rate. AIB and Bank of Ireland participate in striking the Euribor on a rotational six-month basis.

In practice, the Euribor is the base rate upon which over-the-counter lending and borrowing operations are referred. It is also used as a reference rate for contractual purposes. Readers should be aware that, while every effort is made to publish accurate information, the rates as published should not be used to finalise any legally binding agreement - please refer to your bank for the current daily rate.