COVID-19

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Read time: 3 minutes

The COVID-19 pandemic has changed, at least temporarily, all facets of society and has had a truly global impact.  The scale of fatalities and the losses suffered by families are truly tragic.  Whilst the impact of the virus from a medical perspective is starting to become clearer, the economic impact of the pandemic is still largely unknown.  From Europe to Asia and the United States, businesses have been tested to their very limits by having to deal with often very stringent lockdown measures in an attempt to control the spread of the virus.  This blog examines how the COVID-19 pandemic affects the Indian economy, especially non-performing assets (NPAs).
Continue Reading India – a special situation? The impact of COVID-19 on Indian non-performing assets

Read time: 5 minutes

On 2 April 2020, the European Banking Authority (EBA) published guidelines on legislative and non-legislative moratoria on loan repayments in light of COVID-19 (EBA/GL/2020/2) (the Guidelines). The Guidelines were updated by a supplementary supervisory statement addressing the treatment of securitised exposures subject to payment moratoria, issued on 22 April 2020.

The supplementary supervisory statement addressing securitised exposures establish where legislative and non-legislative moratoria should not trigger default or forbearance classifications for regulatory capital purposes and where actions taken under payment moratoria will not be considered a breach of the prohibition of ‘implicit support’.
Continue Reading EBA publishes additional supervisory measures on legislative and non-legislative moratoria on loan repayments in light of COVID-19

Read time: 2 minutes 45 seconds

In these uncertain times, we take a look at the potential implications of COVID-19 on the LIBOR transition, currently scheduled for the end of 2021.

The anticipated impact of COVID-19 on the LIBOR transition can be divided into two parts. There is the immediate and operational effects that the virus will have on banks’ transition timeline, and there is the longer-term structuring implications that this period of uncertainty will create. There is also the question as to whether 2021 will remain the deadline for the transition.
Continue Reading COVID-19: impact on the LIBOR market and 2021 transition