Euro three-month borrowing rate at 7-week high (Bloomberg) (06-03-2008)

March 6 (Bloomberg) -- The interest rate for borrowing Euros for three months has reached the highest level in seven weeks after having fallen in early December on the announcement of the effort made by central banks to revive lending, and which is now stalling.

According to the European Banking Federation the Euribor for loans is up 3 basis points to 4.43 percent today, the highest it has been since Jan. 17. It was the biggest gain since Jan. 25.

The increase in money-market rates adds to evidence a concerted plan by central banks to promote lending and limit the fallout from the U.S. housing slump isn't working. Banks' asset write-down's and credit losses exceeded $181 billion since the beginning of 2007, data compiled by Bloomberg show. Total write-down's may top $600 billion, UBS said last week.

The three-month London interbank offered rate, or Libor, for pounds was little changed at a two-month high of 5.77 percent, while the dollar rate fell 1 basis point to 2.99 percent, the lowest since March 2005, the British Bankers' Association said.

Source: Bloomberg