LMA and APLMA publish joint call to action on remaining USD LIBOR transition

The LMA and APLMA are pleased to have published a joint open letter urging loan market participants to take all necessary steps to complete USD LIBOR transition by the end of September. 

The FCA has made clear that the remaining tenors of USD synthetic LIBOR will be discontinued by end-September.  As that deadline approaches, this call to action urges all loan market participants who are still in the process of USD LIBOR transition, as well as those who may not be prepared for, or aware of, the impending deadline to be fully prepared.  Undue reliance on ‘cost of funds’ as a fallback can be problematic for lenders and borrowers as it may not be a workable permanent fallback for a number of reasons (including operational limitations and the difficulty of calculating the relevant cost). 

We urge all loan market stakeholders to pass this message on to ensure no-one is left unprepared, particularly in certain markets in Africa and Asia where there may be a lower level of general awareness of the imminent deadline.

The LMA and APLMA are on hand to support the market through this critical period, so please contact us with any specific issues or concerns.

We would like to thank the Official Sector for their ongoing help and support in facilitating this transition. Together, we can ensure a successful transition for all.

Click here to access the full open letter.