We have been receiving questions on Article 118-bis which requires loan agreements to include clauses dealing with changes to a benchmark.  This is impacting loan agreements, including outside of Italy.

Since mid-2024, we have been working proactively with our members on this, including through the EURIBOR Fallbacks Task Force. The LMA documentation published in December 2024 assists market participants with implementing robust EURIBOR fallbacks. We are working with the market on developments in implementation to assist with efficiency in the market. 

On 17 December 2024, we published a package of documentation to assist with the implementation of robust EURIBOR fallbacks including: single currency euro exposure drafts; exposure draft wording for the Bloomberg EURIBOR-€STR Spread; and a guidance note on fallbacks to interbank term rates and LMA documentation.

We are requesting feedback on the exposure draft documentation, particularly in respect of its use in practice, by close of business on Friday 28 February 2025.  

The Steering Committee of the National Working Group (NWG SC) has published its decision to select WIRF– as the key interest rate benchmark replacing the WIBOR benchmark. This follows the previous selection of the WIRON benchmark.

Click here to access the NWG SC’s announcement.