May 3, 2019
Aircraft lessors must ensure that lease contracts maturing beyond 2021 incorporate fallback provisions in case LIBOR is unavailable, enabling their platforms to transition to an alternative reference rate. The volume of contracts to review is daunting!
Airfinance Journal Daily Newsletter – May 3, 2019 – With the anticipated end of the London Interbank Offered Rate (LIBOR) fast approaching, the global aviation finance and aircraft leasing sectors are gearing up to revisit loans, leases, bonds, hedging, sales and purchases, and other agreements worth trillions of dollars annually that use LIBOR in their interest rate calculations. LIBOR, whose likely end became apparent in 2017, still has no global replacement that can be plugged into aircraft leasing or finance documents as a direct interest rate substitute.
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