United States:
U.S. Treasury Issues Guidance On The Transition From Interbank Offered Rates To Other Reference Rates
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The U.S. Department of the Treasury issued proposed regulations
that provide guidance on the transition from LIBOR. One set of such
regulations provides that substituting a "qualified
rate," such as the Secured Overnight Financing Rate (SOFR)
published by the Federal Reserve Bank of New York, for an interbank
offered rate in a debt instrument or certain other instruments will
not result in a re-issuance under Section 1001 of the U.S. Internal
Revenue Code. The proposed regulations can be viewed here. Comments and requests for a public
hearing must be received by November 25.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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