Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Sri Lanka Obtains LIBOR-Based Loan from Russia |
February 9, 2010
According to RIA Novosti, Sri Lanka has obtained a LIBOR-based loan from Russia. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
Sri Lanka recently ended a bloody 25-year civil war against the Tamil Tiger separatists. The New York Times reports that Sri Lanka canceled a $200 million arms deal with Pakistan and China upon the war’s conclusion. Its new arms deal with Russia is predicated on the $300 million loan which will fund the purchase of Russian arms and the refurbishment of Russian weapons systems currently used by the Sri Lankan military. Per Russia’s deputy finance minister Dmitry Pankin, interest rate on the loan will be LIBOR plus 3.5% with a 10-year term.