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:
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 firstname.lastname@example.org.