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ARTICLE · 04 SEPTEMBER 2019

Turkish Lira Reference Interest Rate Launched

Esin Attorney Partnership
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Borsa İstanbul A.Ş. ("Borsa Istanbul") created the Turkish lira overnight reference interest rate ("TLREF").

TurkeyFinance and Banking
Muhsin Keskin
Muhsin Keskin
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Recent Developments

Borsa İstanbul A.Ş. ("Borsa Istanbul") created the Turkish lira overnight reference interest rate ("TLREF").

What's the TLREF?

  • In July of 2017, Andrew Bailey, the chief executive of the UK Financial Conduct Authority (the "FCA"), announced in a speech that after 2021 the FCA would no longer use its power to compel panel banks to submit rate information used to determine the London Interbank Offered Rate ("LIBOR"). Mr. Bailey encouraged the market to develop robust alternative reference rates to replace LIBOR.
  • Since the world's most well-known indicative interest rate, LIBOR, will be unavailable after 2021, countries are making efforts to generate systems based on overnight interest rates that cannot be manipulated. Alternatives including SONIA, EONIA, €STER, SARON, SOFR are being discussed and implemented.

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