Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Dominican Republic Gets LIBOR-Based Disaster Relief Loan |
November 12, 2009
According to a press release, The Inter-American Development Bank (IDB) will give the Dominican Republic a $100 contingence loan for future disaster relief, with rates based on LIBOR. LIBOR stands for the London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
The LIBOR-based loan is the first of its kind to position funds for quick access after a hurricane or earthquake. The Dominican Republic’s credit facility will come from the Contingent Credit Facility for Natural Disaster Emergencies, an IDB program “for financial management of natural disaster risks.” The term is 20 years, including a five-year grace period, with an interest rate set at a margin above LIBOR.