The United Kingdom’s Financial Conduct Authority previously announced that London Interbank Offered Rate (“LIBOR”) is to be discontinued by the year 2021. As we are getting closer to the deadline, it is obvious that it will take some time to get used to the demise of this popular benchmark.
However, for contracts using LIBOR with terms extending beyond the date on which LIBOR cease to exist, the matter is more complicated. The parties can, if they are able to reach an agreement, of course make the relevant amendments to their contracts with the foresight that LIBOR will come to an end. If, on the other hand, the parties are unable to reach such an agreement, than this will obviously become an area which will be prone to disputes.
@Kesikli Law Firm