July 11, 2018 / 11:50 AM / 8 months ago

EU Commission says existing financial contracts unlikely to be affected by Brexit

BRUSSELS, July 11 (Reuters) - The European Commission’s vice president said on Wednesday existing financial contracts, such as derivatives or insurance, are unlikely to be affected by Britain’s decision to leave the European Union, quelling concerns raised by the Bank of England.

“Overall, even after Brexit, the performance of existing obligations can generally continue,” Valdis Dombrovskis told a news conference, citing as examples insurance and derivatives contracts.

The Bank of England has said 82 billion pounds ($109 billion) of insurance liabilities involving 48 million policyholders could be affected across Britain and the European Economic Area. Derivatives worth a notional 26 trillion pounds are also caught in the Brexit crosshairs.

Dombrovskis said supervisors and firms needed to look separately at each contract, but added that at this stage he did not foresee a generalised problem.

$1 = 0.7547 pounds Reporting by Francesco Guarascio; Editing by Mark Potter

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