He added that financial institutions must "very carefully consider their fallback provisions" to ensure that contracts are still viable when
Libor ceases to operate.
LIBOR's already has chapters spanning the North and South Forks of Eastern Long Island to Western Queens.
In July 2017 the U.K.'s Financial Conduct Authority, which regulates
LIBOR, announced that it would stop asking contributor banks to make
LIBOR rate submissions after 2021.
Recall on July 27, 2017, the Brits prospectively announced a sunset date for maintenance of
LIBOR: December 31, 2021.
(6) As a result, regulators in both the United States and United Kingdom, along with global financial organizations such as the International Organization of Securities Commissions ("IOSCO"), have published reports outlining the problems with
LIBOR and beneficial principles for financial benchmarks.
The TLB-1 repricing follows the recent successful re-pricing of Avolon's USUSD 5.0 billion Term Loan B-2 ("TLB-2") facility with an April 2022 maturity to
LIBOR plus 2.25% with a
LIBOR floor of 0.75%.
Even those for whom
Libor has been a significant factor during their working lives must be thinking "Not before time...!" The UK's Financial Conduct Authority (FCA) has set a 2021 deadline to find an alternative to the benchmark rate upon which so many financial instruments are priced.
UK regulators' decision to abandon the
Libor benchmark by the end of 2021 threatens to sow confusion in the market as the industry races to replace the scandal-plagued rate that underpins more than $350 trillion (Dh1,285 trillion) of financial products.
The Swiss National Bank has said that it is to select an alternative for
Libor in due course.
The Financial Conduct Authority (FCA) said it would no longer force banks to submit to
Libor from 2021 after a dearth of financial transactions providing data called into question the rate's relevance.