Q: Can you explain the concept of LIBOR?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: Please read from page 117 from the link below:
http://islamicfinancenews.files.wordpress.com/2009/09/an20introduction20to20islamic20finance.pdf
It has covered this issue in a very easy to understand way.