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Germany

The changeover to the Euro will have a substantial impact on European price sources. The Fibor (Frankfurt Interbank Offered Rate), for example, will vanish from January 1 1999. On that date, one to 12 month Fibor rates will be replaced by one to 12 month Euribor rates (Euro Interbank Offered Rate), and the Fibor overnight rate will be replaced by the Eonia rate (Euro Overnight Index Average). Euribor and Eonia rates will be calculated on a daily basis using quotes from a maximum of 64 European banks, 12 of which are domiciled in Germany.

Based on the Discount Rate Changeover Act (Diskontsatz-Überleitungs-Gesetz), the Federal Ministry of Justice issued in May 1998 a draft called Fibor Changeover Regulation (FIBOR-Überleitungs-Verordnung). This regulation will ensure that the changeover from Fibor to Euribor and Eonia will not raise any doubts as to continuity of contract for all agreements with floating rates referring to Fibor.

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