A Global Force in
Trade Finance

IBOR Reform

On March 5, 2021, the United Kingdom Financial Conduct Authority (FCA) and ICE Benchmark Administration officially announced that the widely used benchmark interest rate, the London Interbank Offered Rate (LIBOR) will be phased out. The discontinuation of LIBORs has been earmarked for December 2021, with full completion targeted for June 2023.

This announcement triggered the calculation of the fallback adjustment spreads in order to ensure IBOR transition economic neutrality and provide certainty to benchmark rate users once LIBOR no longer exists. 

This transition marks one of the most prominent changes with regards to the structure of financial markets globally, covering all financial institutions and their clients.

FIMBank emphasises its commitment to the satisfaction of its clients, which is why the Bank is available to tend to any client requests to ensure that all exposures are appropriately and smoothly transitioned, and that fallback language is updated in anticipation of all deadlines, where necessary.

FIMBank is geared to assist its clients with the necessary funding facilities, in line with the recommended Risk Free Rates (RFRs).

With its IBOR Conversion team, the Bank is well prepared for the end of LIBOR and is ready to assist its clients with the transition process.

Please review Timeline Below:

  • 30 June 2021
    All new contracts have to have new RFR rates embedded,

  • 31 December 2021
    Libor rates for all tenors of GBP, EUR, CHF and JPY as well one-week and 2M of USD will disappear –
    thus all existing active contracts maturing beyond 2021 need to be converted to new rates before this date,

  • 30 June 2023
    The remaining USD LIBOR rates will be discontinued  thus all USD Libor contracts will need to mature or to
    be converted into new rates by this date.

For more info please download presentation below or click the button to view FAQs relating to IBOR.