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Stephen Pegge, UK Finance Managing Director of Commercial Finance, said:
The government’s intention to legislate for the transition of ‘tough legacy’ LIBOR contracts provides welcome clarity, removing uncertainty for both customers and lenders and playing a key role in ensuring fair and consistent customer outcomes. The industry continues its efforts to transition all contracts that can be amended ahead of the cessation of LIBOR as this provides for the greatest certainty for both borrowers and lenders.
"These changes are likely to actually permit greater focus and resource on contracts which are not ‘tough legacy’ in nature and help encourage a smoother quicker and more efficient transition for these contracts. This work will accelerate in the coming months, with legislation aimed at those contracts which are not possible to amend an important aide to the transition.