👉 The adjusted IOR, or Index of Overdue Interest Rate, is an index that reflects the average interest rate charged on overdue loans or credit lines, adjusted for inflation and other economic factors to provide a more accurate picture of borrowing costs. Unlike the raw IOR, which can be skewed by short-term fluctuations in interest rates, the adjusted IOR smooths out these variations, offering a clearer trend over time. This makes it a valuable tool for investors, analysts, and financial institutions to assess the health of the credit market and predict future interest rate movements. By accounting for inflation, the adjusted IOR helps to normalize the data, making it easier to compare periods and identify underlying trends in interest rates.
