Banking and Finance Q&A: Is the end near for LIBOR?

This issue of "Banking and Finance Q & A" focuses on the LIBOR benchmark rate that appears to be facing an uncertain future. The starting point is a speech given by Andrew Bailey, head of the UK Financial Conduct Authority on 27 July 2017 entitled The future of LIBOR. The speech again brought into focus the future of LIBOR, or rather the lack of it, as the speech may turn out to be the final "death warrant" on LIBOR as we know it today.

The insecurity about the future of LIBOR raises several questions, not least in relation to the practical implications for both existing and future loan agreements, bond terms, derivatives and other financial contracts using LIBOR as a benchmark rate. In addition, from 1 January 2018, the new EU Benchmark Regulation will impose obligations on banks and other supervised entities using LIBOR to have robust written plans in the event of material changes or cessation of LIBOR, and to ensure that these plans are reflected in their contractual relationships with clients.

In this Q & A, Plesner's Banking and Finance team will answer some of the central and commercially important questions about the future of LIBOR. Please contact us if you have any further questions or if you need advice with respect to LIBOR.

Read Banking and Finance Q & A:Is the end near for LIBOR? (In Danish)

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