Mibor is the acronym in English for Madrid InterBank Offered Rate, which means interbank interest rate of the capital market from Madrid. The Mibor rate is therefore an interbank interest rate. That is, it is used in the operations of loan and capital between different financial entities.
The Mibor represents an average. That of the daily interest rates at which operations have been carried out for a period of one year during the working days of the month and in the Madrid interbank deposit market.
Evolution of Mibor
The Mibor rate became the reference interest rate in the Spanish mortgage market, being used in all loans that included a variable interest rate. This interest rate was also used in the international financial market until January 1, 2000. Since that date, it has disappeared in interbank international operations and little by little it also ceased to be used in operations at the national level.
Given that Spain belongs economically to the euro zone, it began to be used to replace Mibor, the Euribor. Currently the Euribor has become one of the most widely used reference interest rates in the national and international market. Both in interbank operations and in loans to individuals.
Although it has practically ceased to be used, Mibor continues to be published regularly in the BOP Official State Gazette. Since there are still operations contracted prior to January 1, 2000 in which this reference interest rate appears. In addition, its evolution can also be consulted on the website of the Bank of Spain. An evolution that since its disappearance has followed a similar trajectory to that of its predecessor the Euribor.