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  • From LIBOR To SONIA and What You Need To Know

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    Rohit Gajare
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    The document discusses the transition away from LIBOR, the widely used benchmark interest rate. It notes that LIBOR is acknowledged to not be robust or sustainable, and will be discontinued after the end of 2021. It advises that businesses should expect banks to begin offering alternatives to LIBOR by the end of September 2020, and to cease offering LIBOR-linked loans altogether by the end of the first quarter of 2021. Transitioning contracts from LIBOR to alternative reference rates is important to avoid potential issues when LIBOR is no longer produced.

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    SONIA

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    rfrwg-libor-to-sonia-introduction-slides

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    The document discusses the transition away from LIBOR, the widely used benchmark interest rate. It notes that LIBOR is acknowledged to not be robust or sustainable, and will be discontinued after the end of 2021. It advises that businesses should expect banks to begin offering alternatives to LIBOR by the end of September 2020, and to cease offering LIBOR-linked loans altogether by the end of the first quarter of 2021. Transitioning contracts from LIBOR to alternative reference rates is important to avoid potential issues when LIBOR is no longer produced.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views3 pages

    From LIBOR To SONIA and What You Need To Know

    Uploaded by

    Rohit Gajare
    The document discusses the transition away from LIBOR, the widely used benchmark interest rate. It notes that LIBOR is acknowledged to not be robust or sustainable, and will be discontinued after the end of 2021. It advises that businesses should expect banks to begin offering alternatives to LIBOR by the end of September 2020, and to cease offering LIBOR-linked loans altogether by the end of the first quarter of 2021. Transitioning contracts from LIBOR to alternative reference rates is important to avoid potential issues when LIBOR is no longer produced.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    From LIBOR to SONIA and what you

    need to know:
    Introduction to LIBOR transition
    educational videos
    Alieda Moore – Deputy Agent for London, Bank of
    England
    July 2020
    What is LIBOR?

    We expect LIBOR transition to affect most British businesses in some way,


    including small non-financial organisations and other businesses
    throughout the UK.

    The LIBOR benchmark is used in a range of contracts, including


    mortgages, business loans and other non-financial contracts.

    2022
    The LIBOR benchmark is widely acknowledged not to be sufficiently
    robust or sustainable. Given these weaknesses the intention is that
    sterling LIBOR will be discontinued after the end of 2021.
    RFRWG Video Series: Introduction to LIBOR transition educational videos – July 2020
    Timelines for LIBOR transition and next steps

    • Recognising the impact that Covid-19 has had on businesses and financial
    institutions, interim GBP LIBOR timelines have been revised but will
    require your engagement now to avoid surprises later.

    • You should expect banks to begin offering alternatives to GBP LIBOR no


    later than the end of September this year, and to cease offering GBP
    LIBOR-linked loans altogether by the end of Q1 2021.

    RFRWG Video Series: Introduction to LIBOR transition educational videos – July 2020

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