Africa-Press – Eswatini. The popular Libor scandal has also necessitated the amendments to the existing financing agreement between the EXIM Bank of Taiwan and the Government of Eswatini.
Communications Officer in the Ministry of Finance, Setsabile Dlamini said through these amendments, they were changing the interest rate from London interbank overnight rate to US secure overnight finance rate. She said the Libor scandal that informed the changes in the rate at which the government was repaying the loans from the EXIM Bank of Taiwan. Libor refers to the London Inter-Bank Offered Rate, it is an interest rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks.
It is the primary benchmark, along with the Euribor, for short-term interest rates around the world. The Libor scandal was a series of fraudulent actions connected to the Libor and also the resulting investigation and reaction. Libor is an average interest rate calculated through submissions of interest rates by major banks across the world. The scandal arose when it was discovered in 2012 that banks were falsely inflating or deflating their rates so as to profit from trades or to give the impression that they were more creditworthy than they were. Libor underpins approximately US$350 trillion in derivatives. It is currently administered by Intercontinental Exchange (ICE), which took over running the Libor in January 2014.
For More News And Analysis About Eswatini Follow Africa-Press
