11 Sept 2019
EONIA, the overnight rate for euro is being discontinued which means deals will need to be transitioned to an alternative rate.
EONIA, the overnight rate for euro is being discontinued:
What about EURIBOR? The good news is that the ECB has decided to support the continuation of EURIBOR based on a reformed methodology, but its long term future remains unclear. Contractual fallback rates in EURIBOR deals are therefore anticipated to evolve along the same lines as for legacy LIBOR deals. More imminent (Q4 2019), is a change to the basis on which EURIBOR is published – which may have contractual and operational implications for users.
Our latest briefing on 'Transforming Interest Rate Benchmarks' focusses on key developments in the euro area and some near-term action points for users of EONIA and EURIBOR.
This material is provided for general information only. It does not constitute legal or other professional advice.
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