A loopback interface is used as the termination for address for BGP sessions. This allows BGP to stay up even when the outbound interface is down as long as an alternate path is available. To install the loopback interface on PE 1 as shown in IBGP example, enter the following commands.
device(config)# interface loopback 1
device(config-lbif-1)# ip address 10.2.2.1/32