The benchmark rate for ship finance — Libor — is to be phased out within two years. To smooth the transition and mitigate financial and legal risks, shipowners should begin their preparation as early as possible.
After widespread manipulation of the interbank rate by lenders, regulators have decided to initiate a transition away from the 50-year-old benchmark, which is estimated by the International Monetary Fund to be used in US dollar contracts totalling at least $200trn at any one time.
