Safe harbour considered in Britain to avoid LIBOR lawsuits

  • Nadsaq is reporting that in Britain there is concern that after December 2021 lawsuits could clog the legal system due to lawsuits regarding financial impact when LIBOR ceases to exist and is replaced with another rate. It is considering a legal fix to avoid LIBOR lawsuits after the cessation. Some legacy contracts may have to use a form of LIBOR, which will be calculated differently. This may cause some investors to lose out financially
  • The finance ministry asked whether it should introduce policies so that forced conversion of the benchmark to another rate cannot be deemed as a breach of contract in a public consultation on Monday