EONIA

EONIA is the euro Overnight Index Average, a weighted average of all overnight unsecured lending deals. EONIA lending is for one-day to 24-month transactions and the fixing time is 19:00 CET. Look at EONIA as the Effective Funds rate for the United States. More importantly, it is the effective rate for EURIBOR simply due to its weight average factor against EURIBOR.

Notice Exhibit 5.11, the 12-month historical chart of EONIA rates and Exhibit 5.10 historic euro/U.S. dollar. From 1999 to 2004, the euro/U.S. dollar movements tracked opposite the EONIA rates. As EONIA rates went up, euro/U.S. dollar fell and vice versa. From 2003 to 2006 rates held steady, but 2006 to 2008 saw the euro/U.S. dollar track alongside EONIA rates with a normalization ...

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