• 3 Jun 2021 3:05 PM | Michele Fogarty (Administrator)

    FSB statement on smooth and timely transition away from LIBOR

    This statement encourages authorities to ensure that regulated entities align their use of new LIBOR contracts with the relevant timelines for the respective currency, regardless of where the trades are booked.


    Public country-by-country reporting by big multinationals: EU co-legislators reach political agreement

    • Representatives of the Portuguese presidency of the Council today reached a provisional political agreement with the European Parliament’s negotiating team on the proposed directive on the disclosure of income tax information by certain undertakings and branches, commonly referred to as the public country-by-country reporting (CBCR) directive.

    • Such practices are facilitated by the absence of any obligation for big multinational companies to report on where they make their profits and where they pay their tax in the EU on a country-by-country basis.


  • 3 Jun 2021 2:54 PM | Michele Fogarty (Administrator)

    The Financial Stability Board (FSB) has issued a statement on LIBOR transition looking ahead to the 31 December 2021 deadline.

    The statement can be found here.

    Alongside the statement the FSB has published an updated transition roadmap that provides an overview of useful transition steps.  

    Likewise, the FSB has published two papers to help firms with their transition efforts. One paper that covers the various overnight RFRs and term rates (here) and one that delves into the use of the ISDA spread adjustments for cash products (here).

    Tarek Tranberg
    Head of Public Affairs & Policy
    European Association of Corporate Treasurers – EACT

    E   L: LinkedIn

  • 27 May 2021 8:18 AM | Michele Fogarty (Administrator)



    IACT is delighted to announce Smurfit Kappa as the winner of the inaugural IACT Treasury Award. The submissions were reviewed based on 6 criteria: innovation, reach, ESG, excellence, economics and inspiration.

    The Smurfit Kappa Treasury team which was supported by Matheson on the legal side has been announced as winner for arranging its first sustainability linked loan for €1.35bn, whilst setting new targets to reduce its carbon footprint, water use and establish a more diverse workforce.

    Smurfit Kappa has displayed highly responsible industry leadership from many perspectives, including through its core belief in the importance of sustainability achieved through its circular business model. Their forward thinking and innovative RCF amendment demonstrates how Treasurers can fulfil their funding requirements at optimal cost while having a positive impact on the world. For the Smurfit Kappa team, their additional motivation included:

    (1) providing clear evidence to customers, investors, employees, affected communities and suppliers of the determination of Smurfit Kappa’s senior management to prioritise stated ESG goals and KPIs;

    (2) linking ESG KPIs with a reduced cost of funding would have a powerful effect on achieving maximum ESG “buy-in” across the business; and

    (3) setting an example for other Corporates with ambitious ESG goals and clearly defined KPIs to request similar provisions from their banks, thereby magnifying the positive ESG impact of the initiative beyond its immediate context

    More information relating to the RCF amendment, such as the relevant syndicate of banks, the new interest rate adjustment provisions agreed in December 2020, Smurfit Kappa’s five ESG related KPIs and the global geographical reach of those KPIs are included in a Global Capital article “Smurfit Kappa seals five green promises with loan”

    Smurfit Kappa is a global leader in the design, manufacture and supply of sustainable paper-based packaging. It has 46,000 people working at more than 350 production sites in 35 different countries. It is listed on the UK’s FTSE 100 index and last year its revenue topped €8.5 billion.

    The IACT has nominated the Smurfit Kappa deal to represent Ireland at the European Association of Corporate Treasurers (EACT) Awards to be held in June. The EACT is the representative association for Treasury Associations across Europe.

    The formal prize giving of the IACT award will take place later this year.

  • 7 Apr 2021 10:03 AM | Michele Fogarty (Administrator)

    To view the latest EACT regulatory report click here HERE

  • 5 Mar 2021 5:30 PM | Michele Fogarty (Administrator)

    Please find below updates from the European Association of Corporate Treasurers re LIBOR and Taxation.


    The UK’s Financial Conduct Authority (FCA) has this morning issued the formal announcement for the definitive cessation of LIBOR, effective end of 2021 for most currencies and tenors. The FCA will also be consulting on the possibility of asking the administrator of LIBOR (IBA benchmarks) to continue publishing a synthetic LIBOR rate for sterling (1 month, 3 month, and six month) for a period of one year after 31 December 2021 and for USD for a period of 1 year after 30 June 2023.

    The FCA announcement can be found here.

    The statement clarifies that all LIBOR in all currencies and tenors except for the 1 month, 3 month, 6 month, and 12 month USD LIBOR settings will cease effective 31 December 2021. For the mentioned USD LIBOR settings the end date is 30 June 2023.

    In parallel to the FCA’s announcement, ISDA has issued a statement – here – indicating that the fallback spreads under the ISDA protocol will be fixed for all LIBOR settings on the basis of the Bloomberg spread adjustment published for today.

    This announcement will also constitute the cessation trigger on the EU side for the European Commission to begin the process of designating the statutory fallback rates for LIBOR under the new mechanism that was signed into law earlier in February with the review of the EU Benchmarks Regulation. The European Commission will therefore likely issue a public consultation in the coming months to determine the specific statutory fallback rates for the relevant LIBOR currencies that will operate as the last resort safety net for the immediate period after definitive LIBOR cessation.

    Tax - Public Country by Country Reporting - Member States reach agreement

    Last night Member States in the Council reached an agreement on a negotiating mandate for interinstitutional discussions with the European Parliament on new rules for corporate public country by country (pCBCR) tax transparency.

    You can find the negotiating mandate of the Council here and that of the European Parliament here.

    Under these rules, any multinational with a global consolidated revenue of more than EUR 750 million would have to disclose income tax paid (and related information) in each Member State of the EU and in any non-EU jurisdiction on a consolidated basis. The legal text (once finalised) includes the definitive list of all information that would be required to be disclosed as well as exceptional provisions under which disclosure can be deferred for a maximum of 6 years (e.g. in the event that disclosure could jeopardise commercially sensitive information).

    In terms of next steps, the coming weeks will see interinstitutional negotiations with the European Parliament begin. With the Parliament likely to push for even stricter requirements than Member States were able to compromise on after 5 years of negotiations, it will remain to be seen how quickly a final agreement can be struck on these rules.

    Tarek Tranberg
    Head of Public Affairs & Policy, European Association of Corporate Treasurers – EACT

    +32 485 1884 03 I L: LinkedIn

    EU Transparency Register No: 9160958318-89

  • 28 Jan 2021 9:14 AM | Michele Fogarty (Administrator)

    With the planned discontinuation of Libor at the end of 2021 fast approaching it is “impossible to overstate the significance of fallbacks” as per the CEO of ISDA Scott O’Malia (Oct 2020).

    Many corporates may be exposed to LIBOR at a time that it will be discontinued and to address that risk ISDA has continually highlighted the importance of using alternative Risk Free Rates (“RFRs” for both LIBOR and the other main interbank offered rates “IBORs”.

    Earlier this week ISDA IBOR fallbacks took effect. See below the relevant press release and link to the documents explaining these fall back in more details.


  • 6 Jan 2021 10:41 AM | Michele Fogarty (Administrator)

    EACT regulatory report January 2021

    Click HERE to view report

  • 13 Nov 2020 6:57 AM | Michele Fogarty (Administrator)

    ESMA sees potential for sudden reversal in investors’ risk assessment

    ESMA - European Securities and Markets Authority

    • These developments, taken together, highlight the ongoing risk of decoupling between asset valuations and economic fundamentals.
    • There are increasing signs of strong geographical and sectorial differentiation across financial markets with fixed income markets seeing large-scale valuation increases across various segments such as emerging markets, investment grade and high yield.

    EU budget: European Commission welcomes agreement on €1.8 trillion package to help build greener, more digital and more resilient Europe

    EUROPA - EU Newsroom - Latest press releases and statements

    European Commission Press release Brussels, 10 Nov 2020 The European Commission has today welcomed the agreement between the European Parliament and EU Member States in the Council on Europe's next long-term budget and NextGenerationEU.


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