With the discontinuation of LIBOR (the London Interbank Offered Rate), your financial and legal teams have a busy year ahead of them.
Not only do they have to pivot midstride to new standards when drafting future contracts, but they also have to amend legacy deals referencing LIBOR.
With many of these contracts drafted in foreign languages, there’s enormous pressure on your team that only a global translation company can relieve. By enlisting legal translation services, your remediation of outdated foreign-language LIBOR deals will remain accurate at every step.
Why LIBOR Can Cause Issues for Your Team
For nearly 40 years, LIBOR has set the short-term interest rates for global financial products — from the loans banks lend to themselves to consumer loans like mortgages and credit cards.
Now that LIBOR is over, tens of millions of contracts referencing this obsolete benchmark need updating. For UK-based deals, these contracts must transition to the Sterling Overnight Index Average (SONIA). However, each major currency has created its own replacement for LIBOR, so there could be several models in the mix.
More still, the end of LIBOR will likely result in increased litigation as financial institutions settle the differences between the old and new benchmarks.
For many international financial institutions, legacy contracts drafted in foreign languages are par for the course. That means your team may encounter documents in multiple languages that require heavy remediation, complicating the transition from LIBOR to its replacements.
How Can Translation Services in London Help?
Despite Brexit impacting the UK’s role in the EU and LIBOR’s defeat, London remains one of the most important financial capitals, second only to New York.
Translation services in London have one of the world’s largest banking centres as the backdrop to their business. Thanks to their location, they’re uniquely positioned to help with international banking and legal issues.
Despite their roots in London, any global translation company worth its salt has a diverse international team of legal translators, transcriptionists, and interpreters.
These professionals draw from their backgrounds and extensive training, bringing their knowledge of languages, dialects, and global financial and legal standards to the table.
What to Expect from a Legal Translator?
Accuracy: Collectively, contracts that reference LIBOR are worth hundreds of trillions of pounds. With this much money hanging in the balance, your legal translator must provide accurate work.
Knowledge: The best translation companies hire only the most competent legal translators with many years’ experience. On top of that, these translators should be native speakers of your target language to ensure they don’t miss a single thing.
Certified Services: As long as you find a translator through a global translation agency, you can rest assured any translations can be certified. In some cases, this may be a statutory requirement for important documents.
Convenience: Involving a team of legal translators frees up your team to focus on the issues of today, like drafting new contracts under the updated benchmarks.
Although the financial world agreed LIBOR had to go, phasing out this historic document will take time and effort. If foreign language documents are slowing your teams down, find a language agency that provides legal translation services in London. They can tear down language barriers while updating your files.