Rare but there: Swiss bail-in recognition provisions

Author: | Published: 12 Mar 2018

It’s advisable to include Swiss stay and bail-in recognition clauses in LMA-style syndicated credit agreements even if not required under Swiss legislation

Swiss market participants have become accustomed to the inclusion of the Loan Market Association (LMA) recommended form of bail-in recognition clause in Swiss law governed syndicated credit agreements, which caters to the recognition clause requirement under article 55 of the European Bank Recovery and Resolution Directive (BRRD). Just in time for the entry into force of Switzerland's own recognition clause requirement on April 1, this article explains why it is rarely required, but sometimes advisable to include Swiss stay or bail-in recognition clauses in syndicated credit agreements....