Scheda

The Working Group on Risk Free Rates published the Guidance for Corporate Lending Products for Implementing the Recommendations on EURIBOR Fallback Trigger Events and €STR-based EURIBOR Fallback Rates.

The purpose of the guidance is to provide clarity to corporate lending products on the May 2021 recommendations and their application to corporate lending products.

Whilst the May 2021 recommendations had been mindful of providing flexibility to corporate lending products to align with international syndicated loan conventions, there has been a lack of progress in corporate lending products in adopting the May 2021 recommendations and the working group has therefore published the guidance. It is expected that clarification of the recommendations applicable to corporate lending products as provided by the guidance should enable market participants to now move towards adopting robust fallbacks, engage more readily in the process of following the recommendations and thereby facilitate the development of standard market practice. The guidance is a reiteration of the previously published recommendations without further change and should be read alongside the May 2021 recommendations

 

This guidance is addressed to market participants active in EURIBOR-referencing corporate lending

products, including lenders, borrowers, investors, advisers and legal firms