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Libor Transition Deadline Extended


The FCA has announced that the original end of Q3 2020 target to complete transition away from LIBOR across all new sterling LIBOR linked loans will be extended to the end of Q1 2021. The extension is a result of the current pandemic and to avoid exacerbating the already weakened cash flows of businesses. With a recession seeming inevitable, regulators are avoiding any disruption and complication to the flow of loans available.

Following a joint statement last week, the FCA provided a further statement yesterday recommending that:


  • By the end of Q3 2020 lenders should be in a position to offer non-LIBOR linked products to their customers;
  • After the end of Q3 2020 lenders, working with their borrowers, should include clear contractual arrangements in all new and re-financed LIBOR-referencing loan products to facilitate conversion ahead of end-2021, through pre-agreed conversion terms or an agreed process for renegotiation, to SONIA or other alternatives; and
  • All new issuance of sterling LIBOR-referencing loan products that expire after the end of 2021 should cease by the end of Q1 2021.

For the full FCA statement, please click here.

If you have any questions regarding the impact of the LIBOR transition on your loan and/or derivatives, please contact us at