Lenders scramble to get ahead of Italian fallback mandate
New law requiring robust fallbacks for Euribor will take effect on January 10
Banks are considering a new standard fallback template for euro loans to comply with a new law that will require robust fallbacks to be included in loans to Italian borrowers from January 10.
The new documentation, published by the Loan Market Association on December 17 and open for consultation until February 28, would re-hitch single-currency euro loans to the euro short-term rate, or €STR, in the event Euribor is discontinued or deemed non-representative by regulators.
Kam Hessling, senior
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