26th June 2020

UK Finance responds to Governnment's intention to legislate to facilitate LIBOR transition

Commenting on chancellor Rishi Sunak’s statement that the government intends to legislate to facilitate LIBOR transition for ‘tough legacy’ contracts, Stephen Pegge, UK Finance Managing Director of Commercial Finance, said “The government’s intention to legislate for the transition of ‘tough legacy’ LIBOR contracts provides welcome clarity, removing uncertainty for both customers and lenders and playing a key role in ensuring fair and consistent customer outcomes. The industry continues its efforts to transition all contracts that can be amended ahead of the cessation of LIBOR as this provides for the greatest certainty for both borrowers and lenders.

These changes are likely to actually permit greater focus and resource on contracts which are not ‘tough legacy’ in nature and help encourage a smoother quicker and more efficient transition for these contracts. This work will accelerate in the coming months, with legislation aimed at those contracts which are not possible to amend an important aide to the transition.”