Hi, I have a below market fixed rate loan that I have fair valued during initial recognition previously.
But we have used LIBOR to determine the market interest rate. Would like to know if this is impacted by the IBOR reform since I have no change in contractual cash flows?
If it is, how do we adjust the effective interest rate?
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Below market fixed rate loan - discounted using LIBOR at initial recognition as the market interest rate
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JakobLavrod
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Re: Below market fixed rate loan - discounted using LIBOR at initial recognition as the market interest rate
What rate are you moving over to using from LIBOR?
IFRS 9 Impairment Specialist
Risk Control at Svenska Handelsbanken
Risk Control at Svenska Handelsbanken
Re: Below market fixed rate loan - discounted using LIBOR at initial recognition as the market interest rate
My loan is still fixed rate and there won't be any new loan agreement.
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JakobLavrod
- Trusted Expert
- Posts: 198
- Joined: 15 Apr 2022, 17:11
- Location: Stockholm
- Contact:
Re: Below market fixed rate loan - discounted using LIBOR at initial recognition as the market interest rate
In that case, there should not ben any issue right? The loan was fair value at origination, and what happens after that will not matter, or? Love to hear if there is some other views? 
IFRS 9 Impairment Specialist
Risk Control at Svenska Handelsbanken
Risk Control at Svenska Handelsbanken
Re: Below market fixed rate loan - discounted using LIBOR at initial recognition as the market interest rate
Thank you all for yr input!