The basis for calculating the interest rate for all loans in Swiss francs is changing, as announced by the Hellenic Banking Association.
The interest rate will no longer be set on the basis of the interbank Libor, but on the basis of the corresponding interbank rate in Switzerland, called SARON.
According to the announcement of the Hellenic Banking Association, the following are valid:
Abolition and replacement of the interest rates CHF LIBOR and EONIA (Benchmarks Reform).
For a number of reasons it has been decided to replace financial benchmarks, such as the LIBOR, but also other interbank interest rates (“IBORs”). As early as 2014, the Financial Stability Board proposed reforming the IBORs’ framework and replacing them with interest rates based on one-day risk-free interbank lending markets.
In this context, and on the occasion of the announcement of the Financial Conduct Committee (FCA) of the United Kingdom for the termination of all issues of the London interbank rate in Swiss francs (CHF LIBOR) from 1.1.2022, as well as the corresponding announcement of the European Of the Financial Markets Authority (EMMI) to abolish the one-day weighted average interest rate (EONIA) from 3.1.2022, the European Commission has exercised its power to designate a statutory surrogate for these indices under paragraph 8 Article 23b of Regulation (EU) 2016/1011 (Benchmarks Regulation).
In particular, on 22 October 2021, the following Commission Implementing Regulations were published in the Official Journal of the European Union:
* Implementing Regulation (EU) 2021/1847 laying down a statutory substitute for certain versions of CHF LIBOR. This Implementing Regulation sets the CHF LIBOR replacement interest rate at the SARON interest rate plus a fixed adjustment margin, as published for each of the relevant SARON interest rates (one, three, six and 12 months).
Pursuant to Article 23b (3b) of the Benchmarks Regulation, the CHF LIBOR replacement rate automatically replaces by law all references to this indicator in any contract and in any financial instrument that do not contain back-up (alternative) provisions. As LIBOR ceases to be published on 1 January 2022, the fixed interest rates should replace the references to CHF LIBOR from that date onwards.
The above Regulation shall apply from 1 January 2022.
* Implementing Regulation (EU) 2021/1848 setting an interest rate for the replacement of EONIA as a benchmark. Under the above Regulation, the replacement rate of EONIA is defined as the short-term interest rate of Euro (EuroSTR), increased by the adjustment of the existing fixed margin between EONIA and EuroSTR.
Pursuant to Article 23b (3b) of the Benchmarks Regulation, the replacement rate of the EONIA supersedes by law all references to that reference rate in any contract and in any financial instrument which does not contain reserve (alternative) provisions.
As the EONIA interest rate will cease to be published on January 3, 2022, the fixed replacement interest rate will have to replace the references to the EONIA from that date. The above Implementing Regulation shall apply from 3 January 2022.
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