BRUSSELS (Reuters) – A new Swiss Franc risk-free rate SARON will automatically replace the Swiss Libor rate in contracts and financial instruments from next year, the European Commission said on Friday.
The EU executive said a risk-free euro short-term rate will also automatically replace the Euro Overnight Index Average (EONIA) in contracts and financial instruments from next year.
Both the Swiss Franc London Interbank Offered Rate (CHF LIBOR) and the Euro Overnight Index Average (EONIA), which form the basis for a range of financial contracts such as mortgages, bank overdrafts, and other more complex financial transactions, will cease to be published at the end of this year.
(Reporting by Rachel Armstrong in London and Foo Yun Chee in Brussels; Editing by Catherine Evans)
