A global pandemic sweeping over the globe may have caused the UK to shut down everything but the most essential services, but the Financial Conduct Authority (FCA) still plans businesses to stick to the LIBOR shutdown timetable.
Having discussed the matter with the Bank of England and members of the Working Group on Sterling Risk-Free Reference Rates, the UK watchdog has announced that firms still should not expect to be able to rely on LIBOR being published after the end of 2021.
In other words, nothing has changed. The FCA said that the transition from LIBOR remains an essential task that will strengthen the global financial system. Many preparations for transition will be able to continue.
That being said, it acknowledged that the coronavirus has delved some transition efforts for some companies.
These delays were particularly big for companies that have made less progress in transition and are therefore still more reliant on LIBOR, such as the loan market, it is likely to affect some of the interim transition milestones.
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