MF and UKNF to apply for designation of CHF LIBOR substitute

The Ministry of Finance and the UKNF will apply to the European Commission to designate a replacement for selected dates of the CHF LIBOR benchmark – the KNF informed in a communiqué.

On Friday, the UK's Financial Services Authority (FCA) said the final readings of most LIBOR rates will take place on December 31, 2021, with a few remaining for the next 18 months.

"The FCA communiqué is the basis for possible action by the European Commission to determine a replacement for selected benchmarks from the LIBOR family under EU law," the KNF announced on Monday.

The supervisory authority also expects supervised entities that use benchmarks from the LIBOR family to immediately initiate actions aimed at informing clients with contracts, financial instruments, and units of investment funds in which the above-mentioned benchmarks are used, about the planned cessation of the development of these benchmarks and resulting from the consequences of this title.

At the end of 2021, the development of, inter alia, CHF LIBOR, and EUR LIBOR (all dates) will be suspended.

(PAP)