Loan markets call for clarity on scope of US Libor ban

Regulators must address “grey areas” in uncommitted facilities, urge participants

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Lenders are calling on financial authorities to more clearly define the activities that would be exempt from a prohibition on new US dollar Libor contracts after December 31, amid uncertainty over the fate of some lending agreements including uncommitted credit lines and so-called “accordion” provisions.

“We know in some areas what you can do, and in some areas what you can’t, and then there’s a fairly large grey area that is creating a huge amount of anxiety in the market,” said Meredith

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