bank syndicated loans lagging behind LIBOR transition By Reuters
ZURICH (Reuters) – Swiss banks are essentially on track with the transition to phasing out benchmarks from the London Interbank Offered Rate (LIBOR), financial market regulator FINMA said on Thursday, but some products such as syndicated loans are lagging behind.
“FINMA sees the greatest need for action in the area of syndicated loans, i.e. loans for which at least two lenders work together to provide funds,” FINMA said in a statement, adding that the number of syndicated loan contracts without strong fallback clauses had only been reduced. by 28% since the start of 2021.
“FINMA therefore reiterates its call on the banks to actively contact the syndicate’s banks and the borrowers in order to modify the credit agreements concerned and to ensure legal certainty for the future.”
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