What is especially syndicated loans
Posted on Nov 30, 2000 08:15:27 AM
Syndicated loan – a loan that is issued two or more banks to one borrower.
Consortium – a temporary union on a contract basis for various business units ¬ leniya implementation of any project, including association of banks for credit transactions. .
The merger of the Consortium for Credit Transaction allows you to:
– Zoom in credit operations by attracting additional resources from other banks;
– Spread the risk of credit transactions between the par-tnikami consortium. Maintain a certain Uro-Wen liquidity. Solve some marketing problems: finding new customers, building of new business relationships with other banks, etc.
There are two ways to provide syndicated loans:
1) credit issued by several banks by crediting the amount of participation of each bank account (s) of the borrower;
2) the entire amount of credit issued by one bank by crediting the account of the borrower, while the remaining banks – participants of the consortium list the lending bank the sum of its participation. Bank – the organizer of the credit transaction is paid in this case, a special award, in addition to interest.
Procedure for repayment of syndicated loans is determined by the credit agreement and may be as follows:
1) payments received from clients of each bank in accordance with an individual calendar of loan repayment;
2) any payments received from a client is distributed among the banks in proportion to their participation;
3) all payments received from the client, go to the full repayment of debt owed to one bank – a party. Priority at which the debt is established in the contract between the consortium of banks.
Syndicated loans borrowers can be any business entities engaged in large ¬ nye events, including banks and state
- Express loans in stores
- What is the system of lending
- Opening lines of credit
- Forms of credit
- Preferential car loans