The end of LIBOR and SOR is fast approaching. Understand the impacts and recommendations for Singapore corporates.
The end of the London Interbank Offered Rate (LIBOR) as a functional benchmark is fast approaching. It is expected that the benchmark will no longer reliably be published after the end of 2021. Interbank Offered Rate (IBOR) will be replaced by risk-free reference rates (RFRs) globally.
In Singapore, the Singapore Overnight Rate Average (SORA) has been identified as the alternative interest rate benchmark for the Singapore Swap Offer Rate (SOR). In this issue, we discuss the key risks and impacts for corporates and recommend the actions to be taken to address the significant risks associated with the IBOR and SORA transition.
