What you should know ?

 

  • Starting with 01.01.2022, The Financial Conduct Authority of the United Kingdom of Great Britain and Northern Ireland will no longer publish the benchmarks CHF LIBOR.

  • In order to support the customers and financial institutions, in 22 octomber 2021, the the European Commission issued the Regulation (EU) 2021/1847 (“ Regulation ”) for designation a statutory replacement of CHF LIBOR , more precisely a SARON (Swiss Average Rate Overnight) Compound Rate plus a relevant adjustment spread, as published for each of the relevant compounded SARON tenors ;

  • So, the benchmark CHF LIBOR with maturities of 1 month, 3 months, 6 months and 12 months, from your credit agreement, will be automatically replaced after 01.01.2022 with the combined SARON and relevant adjustment spread , without a renegotiation of the contracts, wich is not nedeed

 

LIBOR

TENOR

Replacement Rate

Spread Adjustment Value (%)

CHF

1 M

SARON 1 month Compound Rate (SAR1MC)

–0,0571

CHF

3 M

SARON 3 month Compound Rate (SAR3MC)

0,0031

CHF

6 M

SARON 3 month Compound Rate (SAR3MC)

0,0741

CHF

12 M

SARON 3 month Compound Rate (SAR3MC)

0,2048

 

What you should do ?

 

  • Acces the next link in order to be informed over the new value of the benchmark and the fixed margin adjustment starting with 01.01.2022

  • After the update of the benchmarks that becomes due by the next CHF Libor resetting date according to the contract , you can go in a Branch to take your new refund schedule

  • You can acces the Regulation in here: Regulation (EU) 2021/1847 of 14 October 2021 on the designation of a statutory replacement for certain settings of CHF LIBOR 

 

  • More information in here

 

How this impact you ?

 

  • The replacement of the benchmark mentioned in your credit agreement will be made according to the low, automatically, without signing an addendum, as is not necessary

  • By issuing the Regulation, the European Commission apreciated as a best solution to minimise the economic impact in the loan contracts of the CHF LIBOR cessation starting with 01.01.2022, to assign replacement rates compound of combined SARON and relevant adjustment spread, that you can find in Regulation

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