COPENHAGEN, Aug 3 (Reuters) - Denmark's central bank said on Friday that it would not be reali
stic to abandon the Copenhagen Interbank Offered Rate (CIBOR) because many loan contracts are based on it.
The Cibor has been cast in doubt after the Libor interest rate rigging scandal in Britain, and Barclays Plc this week pulled out as a contributor to the Cibor which continues with seven rate-setting banks.
'Given the large amount of outstanding contracts, replacing Cibor is not realistic,' the Danish central bank, the Nationalbank, said in a brief email statement.
'Conditional on sufficient turnover, we are still of the opinion that Cita would be a useful supplement to Cibor,' the bank said. 'Other relevant supplements may also be considered.'
(Reporting by John Acher and Ole Mikkelsen) Keywords: DENMARK CIBOR/CBANK
COPYRIGHT Copyright Thomson Reuters 2012. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.