(LPC) - The US loan market is split on the best way to tackle document language ahead of the demise of LIBOR. ARRC received feedback from 35 firms on the fallback contract language for loans. Respondents were split, with 46% in favour of a hardwired and 41% preferring an amendment approach. “While we are pleased that most banks have agreed to support this proposal, it remains unclear how many will actually implement it,” said Mr McGettigan.
The US loan market is split on the best way to tackle document language ahead of the demise of LIBOR. ARRC received feedback from 35 firms on the fallback contract language for loans. Respondents were split, with 46% in favour of a hardwired and 41% preferring an amendment approach. “While we are pleased that most banks have agreed to support this proposal, it remains unclear how many will actually implement it,” said Mr McGettigan.