Loan markets call for clarity on scope of US Libor ban
Regulators must address “grey areas” in uncommitted facilities, urge participants
Lenders are calling on financial authorities to more clearly define the activities that would be exempt from a prohibition on new US dollar Libor contracts after December 31, amid uncertainty over the fate of some lending agreements including uncommitted credit lines and so-called “accordion” provisions.
“We know in some areas what you can do, and in some areas what you can’t, and then there’s a fairly large grey area that is creating a huge amount of anxiety in the market,” said Meredith
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