Get thousands of LIBOR transition amendments done in less than 2 weeks
LIBOR is an interest rate benchmark used as a reference for providing adjustable-rate consumer financial products (mostly loans and mortgages).
For decades LIBOR has given banks a secure and reliable groundwork for loan granting, resulting in millions of contracts worth over $240 trillion referencing this index.
Yet in 2021 it has been decided that LIBOR needs to be abandoned for safer and more credible benchmark rates due to the following reasons:
This process became known as LIBOR transition. Its magnitude is driven by millions of deals hinging on the floating interest rates that now need to be revisited.
LIBOR cessation will take place within the following timeframes:
December 31, 2021 – for 1-week and 2-month USD LIBOR
June 30, 2023 – for non-USD LIBOR and for 3-month, 6-month and 1-year USD LIBOR
Roadmap to move your contracts away from LIBOR
LIBOR transition calls for massive updates to the operational and accounting systems, which need to be reflected in the legal contracts, both new and existing.
This places the revisions of contracts that mature after 2021 at the heart of the shift. And while the approaching deadline multiplied by the number of affected contracts needing amendment may leave you second-guessing whether you’re going to make it through safely, we can assure you that you will.
Here’s how you start:
Update all your contracts without rushing.
Beat the deadline
How AXDRAFT makes Libor transition easier?
Enjoy a ridiculously painless LIBOR transition with AXDRAFT