Helibor (''Helsinki Interbank Offered Rate'') was a
reference rate A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house pric ...
that was used in 1987–1998 on the
Finnish interbank market
The interbank market is the top-level foreign exchange market where banks exchange different currencies. The banks can either deal with one another directly, or through electronic brokering platforms. The Electronic Broking Services (EBS) and Reut ...
. It was calculated each day as an average of the interest rates at which the banks offered to lend unsecured,
Finnish markka
The markka (; ; currency symbol, sign: mk; ISO 4217, ISO code: FIM), also known as the Finnish mark, was the currency of Finland from 1860 until 28 February 2002, when it ceased to be legal tender. The markka was divided into 100 penny, pennies ...
nominated funds to each other.
Helibor was quoted for 1, 2, 3, 6, 9 and 12 month
maturities. It was widely used as a reference rate for company loans
[Mika Vaihekoski]
The Finnish Stock Market: Recent Trends and Important Events
. Liiketaloudellinen Aikakauskirja — The Finnish Journal of Business Economics, 4/1997. and housing loans.
[G. Geoffrey Booth et al]
The financing of residential real estate in Finland: an overview.
Journal of Housing Research 5(2). 1994. Before deregulation and floating the currency, it was rather high compared to the rest of the Western world, meaning that for instance mortgage interest rates were regularly ca. 15%. This so-called ''Suomi-lisä'' was removed by deregulation.
The
Bank of Finland began publishing Helibor rates officially in May 1987.
Helibor was quoted for the last time on December 31, 1998, after which it was replaced with the
Euribor
The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks borrow unsecured funds from counterparties in the euro wholes ...
.
Fluctuations in the Helibor played a prominent role in the
Finnish banking crisis in the late 1980s and early 1990s.
External links
Bank of Finland: Old helibor interest rates 1990 – 98
References
{{Reference rates
Reference rates