Borrowers who have acquired financed real estate credit denominated in we Swiss franc, they refer to a significant indicator in their contracts. Until December 31, 2021, it is LIBOR CHF. The name is short for London Interbank Offered Rate – benchmark interest rates on deposits and loans in the London interbank market.
However, the fate of the indicator has already been sealed. From 2022, a different one will be used. What does this mean for borrowers? For example, do they have grounds for canceling their contracts?
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There was LIBOR, here comes SARON
According to the Office of Competition and Consumer Protection, the European Commission has designated a substitute for CHF LIBOR. It will be replaced by the reference index from the SARON family.
SARON indicators are recommended by: in. The Swiss Central Bank succeeds the CHF LIBOR indices. They are included in the list of benchmarks kept by the European Securities and Markets Authority (ESMA). They meet all the requirements of European law regarding the quality of compilation of the benchmark.
Can the loan agreement be terminated because SARON has replaced LUBOR?
And on this matter, the position of the Office is unequivocal. As he explains in his announcement, the introduction of SARON to ongoing loan agreements it will not require changing their content. As he emphasizes UOKiK, borrowers continue to repay their liabilities using the LIBOR CHF substitute, subject to the other rules. The rules for the exact application may differ slightly. Therefore, to find out the details of the use of the successor of LIBOR in your loan agreement, it is worth being in touch with bank.
According to the Polish Financial Supervision Authority, the administrator of the Swiss Average Rate ON (SARON) interest rate benchmark is SIX Financial Information AG with its seat in Zurich. Information on the SARON interest rate benchmark can be checked, inter alia, by on this side.
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