Authors
Allan Hahn

Allan Hahn

Senior associate

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Philip Hoflehner

Philip Hoflehner, MIM (CEMS)

Partner

Read More
Authors
Allan Hahn

Allan Hahn

Senior associate

Read More
Philip Hoflehner

Philip Hoflehner, MIM (CEMS)

Partner

Read More

6 December 2018

Zero interest rate floors in corporate lending

  • QUICK READ

In the past, interest escalation clauses in loan agreements in Austria commonly had variable interest rates, based on a reference interest rate such as EURIBOR or LIBOR and an appropriate interest mark-up. When reference interest rates started to fall below zero, the question whether banks had to pass on negative interest rates to their borrowers in case of loan agreements where no floor had been set became the subject of great discussion. In addition, loan agreements in which a “zero floor” for reference interest rates had been implemented were contested as well.

For further information, please read the article "Zero Interest Rate Floors in Corporate Lending" published in CEE Legal Matters Magazine (Issue 5.8).

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