International loan financing

First, the concept of international loans International loans, also known as "the international lending", "international credit", which means the borrower to the loan agreement to other countries or regions of the lender's loan funds of the international financing. International is a contract of loan financing, in different countries or regions with the borrower in accordance with the international lender of the loan agreement between the form of debt claims of international relations; man-made loans to borrowers in which the debtor, creditors, man-made loans. International lending is the basic feature: (1) international loan borrowers and lenders belong to a different country or region, and its loan agreements, and carry out acts of international dispute resolution practice, the meaning of the principle of self-government or state laws related to the disposal of this Unlike domestic loans. (2) international relations is essentially a loan the borrower and lender of debt claims, which is a legally-awaited settlement of credit and has the characteristics of the period, which is different from cross-border direct investment in the form of international equity Relations. (3) international loan to the loan agreement based on international, it is a contract of financing, is a particular borrower and the lender of a specific agreement between the behavior of their loans and the establishment of the creditors are subject to change the rules of the contract restrictions This is different from the securities financing. International loans are an important form of international finance, international capital flows have occupied the major share. Over the past 20 years, with the international securities market development, international finance means to the Securities and diversification, but the traditional lending agreement continues to be an important form of international financing and the typical form of financing its rapid, convenient and flexible features of other Difficult with the financial means to match. From the practice of view, the current international loans in the structure and means are increasingly tend to complicate this house if the lender based on risk diversification and enhance the security of repayment, rather than international lending their inherent characteristics. Historically, Britain and the United States and most developed countries in the process of industrialization and international loans are all closely related, and in the present circumstances, effective use of international financial means to get international loans to capital, obviously for developing countries to accelerate economic development, achieve Optimal distribution of resources is of important significance. International loans based on different classification criteria can be divided into different types. For example, the lender based on the nature of the international lending can be divided into government loans, international financial institutions and international loans to commercial bank lending; international lending period can be divided into short-term loans to international loans, loans to medium-term and long-term loans; international lending Organization can be divided into exclusive international loans to bank loans, syndicated loans and syndicated loans, and so on. From the flow of international capital markets, mainly in the form of international loans to commercial bank loans (personal loans), and government loans and international financial institutions, loans are usually based on specific policies and loans; loans from commercial banks, among The most typical syndicated loans, which reflects the modern international financing international loans in the basic and fundamental characteristics of the development. Second, government loans Government loans (Government Loan) is a government of its budget to fund another government so as to a specific agreement to provide preferential loans, such loans are usually based on bilateral agreements between countries or between countries and the provision of bilateral relations. If the industrialized countries under the OECD in developing countries to provide official development assistance loans, according to oil-exporting countries, "South-South cooperation" principle for developing countries to provide official development assistance loans are of. Government loans generally take in three ways: First, in order to provide export credit loans; II is simple and long-term loan agreement (the basic form of) loans; three of the above are two ways to provide the loans. A typical loan with the Government the following basic features: (1) government loan borrowers with loans per capita for specific governmental organizations, lending money from the lender of the country's revenue estimate. Such loans is essentially an act of state and national revenue credit, and therefore less subject to the domination of commercial principles. (2) government loan with low interest rates, less the cost of the additional benefits of nature. According to international practice hate, such preferential loans to at least contain not less than 25% of the "gift component", which is based on the interest rate, repayment period, grace period and comprehensive data to calculate the discount rate, such as a comprehensive indicator . Government loan interest rate is generally 1-3%, some even for free; the surcharge is usually limited to the commitment fees and handling charges or of a. (3) general government loans for medium and long-term loans. The loan period is usually 10 to 30 years, the usual grace period of 5 years to 7 years, up to a maximum of 10 years. (4) The majority of loans with certain conditions. For example, to require the borrower of loans of some of the loans to the country for the purchase of equipment, materials, technology or technical services in order to increase loans to the country's export trade; or government loans at the same time, require the borrower to use a certain percentage of related loans to the country's export credit In order to promote non-financial capital loans to the country's output. (5) government loan for the project loan. Its more limited use of the loans in line with bilateral agreements or economic and trade relations between the two sides of the important projects that go beyond the scope of the potential difficulties of loan applications, and is usually the case, the country's lending institutions will also be in accordance with the agreement of the borrowing countries to implement projects Regulatory process. (6) government loan of contracting procedures more complex. Such loans are usually the first country selected by the borrower, to prepare a project document to the State loan application; Second, the loans from the country on the feasibility of the project loans, project efficiency and planned to repay the loan review and assessment; again, in loans States agreed to an initial loan basis, through diplomatic or consular missions will submit a written loan commitment to the country, and then the two sides on the basic conditions of the loan, "an exchange of letters" to negotiate; by the end borrower and the lending institutions to lend the country agreed on the specific details of the loan agreement and By the two sides signed the loan agreements signed at the same time often have to procurement of materials related to the signing of the agreement and other ancillary documents. Third, international financial institutions lending International financial institutions lending refers to the international financial institutions as a lender to the borrower's loan agreement to provide preferential loans of the International. International financial institutions to loan the lender is not limited to global international financial institutions such as Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation (the World Bank Group), including regional and international financial institutions, such as the Asian Development Bank, the Pan-American Development Bank, African Development Bank, European Investment Bank, International Investment Bank. From the form that also belong to the International Monetary Fund global international financial institutions; content from the point of view, of the International Monetary Fund member countries to provide funds with specific nature of its loans be limited to members of the government agency loan The main purpose for its members to address balance of payments imbalance for the time being, its member states to adopt procedures for loan applications approved in the form of money, extract money without having to sign the loan agreement, which applies to "fund" provisions; they are at variance with Described in this section of the international financial institutions have a different quality. International financial institutions also have a non-preferential loans, and its basic features: (1) of the international financial institutions to loan the man-made specific international financial institutions and their borrowers often the designated area have also been restricted. For example, the World Bank loan borrowers is limited to members of government funds, government agencies, by government agencies to provide security for public and private enterprises, the International Development Association loans to borrowers limited to the poor development projects in developing countries parties, the Asian Bank loan borrowers Its members were limited to the development of investment projects in the region, the Inter-American Development Bank loan borrowers limited to its member parties, and must be "reasonable conditions can not get financing from private sources," the parties and so on. (2) of the international financial institutions to loan money comes mainly from member countries of the pay equity, as well as donations from international financial institutions, capital markets financing, the purpose of lending funds to encourage member countries are usually engaged in development projects, assistance to developing countries, especially Poverty is the country's economic development, not exactly the same as those for-profit only for the purpose of commercial loans. (3) of the international financial institutions, loans are usually more concessions, the interest rate generally lower than commercial bank loans, preferential loans may be lower than the rate of 3 percent or even for free; the surcharge is usually also include a commitment to procedures and fees Fee. Despite the international financial institutions, loans are not exactly the same as those between the government of "soft loans", but the conditions of the loan as a whole and as often preferential government loans. (4) of the international financial loans and long-term loans usually, the longer the period, the loan usually last for 10 years to 30 years (up to 50 years), more than a grace period of 5 years. (5) international financial institutions for loans to develop most of the loans, mainly for economic recovery or development projects, non-project loans are usually for supporting the use of this commercial bank loans and also very different. (6) international financial institutions for loans to the use of the loans often have strict limits not only the loan agreement require the borrower to comply with the strict purpose of the loan and the use of the terms of the loan, and lenders usually on the borrower's use of funds to carry out strict supervision and inspection. In the international financial institutions, as a lender of the international financial institutions that are usually independent of its loan agreement with the countries in the force of domestic law, based on international practice for many, the principle of autonomy (international loan agreement, the contents) and the International Monetary Loans issued by the agency to develop a model agreement rules (such as the World Bank in January 1985 amendments to the enactment of the "loan agreement and general security agreement," the International Development Association in January 1985 amendments to the enactment of the "development of the International Development Association credit agreement General" ); Its loan agreements often specified: "(This) loan agreement of the bank loan and the rights and obligations in accordance with the terms of the agreement into effect and must be implemented, regardless of any country or government of any law contrary Requirements. Banks and borrowers under this section in the Department of the right to take any legal action, because the banks adhere to the "agreement" and that the terms of any loan agreement any provision invalid or unenforceable. " In practice, this idea is often matched with the international arbitration system, which the Government's loan agreements and commercial bank loan agreement have some influence, of which the World Bank issued the "loan agreement and general security agreement" for all types of international loan agreements Guide is particularly evident. Fourth, international commercial bank loans International commercial bank loans, also known as the "international commercial loans" and "commercial bank loans," which refers to a country's commercial banks (or international financial institutions) as a lender to the loan agreement to borrowers in other countries to provide commercial loans. International Bank loan is an international loan of the most typical form, and international loans in the total share of the major proportion of its loan funds mainly come from commercial banking, and its lending rate to make more use of the international financial market interest rates. As the international commercial bank loans is relatively simple procedure, compared with government loans and international financial institutions to obtain loans easily, not with the use of its funds outside the terms of the commercial restrictions or conditions, the loan conditions based on market principles Suihangjiushi, for the economy Good efficiency and the shortage of funds for borrowers is the most effective and reliable source of financing. International Bank of the basic characteristics of the loan are: (1) Commercial bank loans and loans for borrowers in addition to the parties in different countries, in principle, subject to a specific identity. Most countries in accordance with the law, the lender can loan is a commercial banking business or any financial institution, the borrower may be subject to all kinds, and some developing countries (such as China) are based on external debt management policy, For their borrowers with certain restrictions on the qualifications. (2) commercial bank loan interest rate is usually to the international financial market interest rates, generally in accordance with the Bank of London on six-month Offered Rate (LIBOR) plus a certain interest rate or the rate of spread (Margin), the In addition to considering the amount of margin loans, loan terms and conditions of credit borrowers, the main basis for the financial markets to determine the relationship between supply and demand. (3) commercial banks for loans and term loans in the short-term loans, the loan period is usually 1 to 10 years, its interest-bearing and interest to more than 6 months for a; some commercial banks to take short-term revolving credit loan Way, for most of the rollover of loans. (4) Commercial bank loans are not specific purpose of the loan limit, but the lender to repay the loan based on the principle of security, the loan agreement and does not violate the principle of legitimate lenders often require the principle of capacity to operate in the loan agreement in the use of the loans included in the terms of the agreement After the signing of the consultations by the parties, should be about self-fulfillment. (5) Commercial bank loans, in principle, first of all by the principle of autonomy and the countries at the disposal of domestic law (usually the host Lender) and jurisdictions, followed by the international practice should also consider the requirements of its loan agreements usually contain provisions of the applicable law Jurisdictions and the terms of this loan with the Government and international financial institutions, loans are different. Commercial bank loans in accordance with international organizations to lend their way, can be divided into separate loans, syndicated loans and syndicated loans of three. Refers to a separate loan from a commercial bank independent of a borrower to the international agreement to provide loans, loan funds from a separate organization of the lender. Joint loan is defined as no more than the legal limit of conditions, from several international commercial banks as a co-lender to the borrower a joint agreement to provide international loans, in accordance with the laws of some countries, in co-financing of loans shall not more than 5 commercial banks Otherwise, the loan will be treated as selling of syndicated loans, to be applicable securities laws and in particular the relevant provisions of the law. Syndicated loans, also known as "syndicated loan", it generally refers to more than five international commercial banks or financial institutions in accordance with the legal documents of the agreement means the borrower to the joint agreement to provide a greater amount of international loans. Syndicated loans are currently the most typical loan financing, the most representative way; it includes not only the international relations Commercial loans in all the basic elements, but also reflects the credit spread risks and improve the efficiency of the financing requirements of the market, which in international business Bank lending practice, there is a growing universalizing tendency. The following sections of this chapter will be the international syndicated loan for the typical international commercial bank lending structure, procedures and legal documents to make a general introduction.

European banks are able to control the subprime mortgage problems

Moody's Investors Service (Moody's Investors Service Inc.) Issued two special comment that the U.S. subprime mortgage market crisis on a large European bank to control or influence on European banks, small risk, and Asia Banks in this regard due to less investment and the impact is limited. Moody's expects that the U.S. subprime mortgage crisis triggered by the financial turmoil for most European banks will be able to control. Moody's EMEA Financial Institutions Group in London, an official said Adel Satel, although in the secondary mortgage market, the prices of financial products, as well as market liquidity has declined significantly, resulting in reduction of bank assets, but Europe's major banks will continue to Access to good corporate efficiency as a whole; at the same time, although these banks are generally in the secondary mortgage market to hold large net positions, but with its own assets and liquidity compared to the amount of these positions could still be considered moderate. However, Moody's Investors Service on Europe's smaller banks more cautious. Moody's EMEA Financial Institutions in London of another person in charge Carballo warned that directly or indirectly invest in the secondary mortgage market, small investors may find that their liquidity, ability to cope with the risks or their financial resources are Not enough to deal with any valuation adjustments and the resulting liquidity of the corresponding demand. Moody's financial institutions in Asia in accordance with the preliminary findings are expected to invest in the global active as Asia's World Bank, the United States subprime mortgage problems will be relatively limited.

European bank loans to large losses of Britain's most injury

Management consulting firm Oliver Wyman and credit management services group Intrum Justitia study released Monday showed that the Department of the European Bank for the next three years in the consumer credit and mortgage business losses are expected to 120,000,000,000 euros (about 190,000,000,000 U.S. dollars), of which hit The most serious is that Britain, Spain and Ireland. Reuters, reported that the banking industry in Europe this year, consumer credit and mortgage business losses will be 34,700,000,000 euros, is expected next year amounted to 42,500,000,000 euros, representing a 35% higher than in 2007. Oliver Wyman partner Matthew Sebag-Montefiore said, "Despite the increased cost of financing and lack of liquidity of banks have been hit, but in view of some of the housing market slump, the general deterioration of the macroeconomic environment and rising inflation, we expect the entire European banking sector The overall retail credit losses will increase rapidly. " Bank of aggressive lending in the macroeconomic environment and the risk of rapid deterioration of the attack, Britain, Spain and Ireland will be the biggest victims.

Bank of Paris is Europe's largest bank loans Lehman creditors

According to the U.S. NBC TV (CNBC) 9 reported on 15, Lehman Brothers Holdings Inc. (Lehman Brothers Holdings Inc.) Filed for bankruptcy protection in the relevant documents show that BNP Paribas (BNP Paribas) for Europe's largest investment bank Creditor bank loans. When the news broke, BNP Paribas shares fell. Wall Street had the fourth-largest investment bank - Lehman Brothers Holdings Inc. (Lehman Brothers Holdings Inc.), In a statement earlier on the 15th, will be announced in accordance with U.S. Chapter 11 bankruptcy bill to the Southern District of New York of the United States Bankruptcy Court for bankruptcy Protection. Lehman filed for bankruptcy documents show that the investment bank BNP Paribas loan exposure of up to 250,000,000 U.S. dollars for Lehman in Europe's largest creditor bank loans. Lehman was in the court documents cited in the 30 largest creditors, but also Europe the following banks: Bank of Sweden (Svenska Handelsbanken), Union Bank of Belgium (KBC), the British bank Lloyds (Lloyds TSB), Standard Chartered Bank ( Standard Chartered), as well as Den norske Bank (DnB NOR Bank ASA), and so on. Upon exposure of the above announcement, the bank-related shares dropped. Paris, one of 15 local banks in the morning trading down 6.2 percent, the Dow Jones - Stockton European bank index fell 5.6 percent over the same period. In addition, the Swedish commercial banks fell by 3.5 percent, Union Bank of Belgium fell 4.2 percent, Lloyds Bank fell 5.4 percent. Lehman filed for bankruptcy protection and revealed that the documents, the company's total assets amounted to 639,000,000,000 U.S. dollars, while total debt to 613,000,000,000 U.S. dollars. It also makes one stroke over Tom Lehman Drexel Burnham (Drexel Burnham Lambert), the United States in the history of the collapse of the largest financial companies. Since the collapse of the junk bond market, large-scale investment bank Drexel Burnham in 1990, was forced to file for bankruptcy. At the same time, the giant Swiss banks - UBS (UBS AG) of the stock market is also speculation that ushered in the fall. UBS, despite its direct competitor Credit Suisse (Credit Suisse) are Lehman declined to comment on its potential exposure in a position to comment, but market speculation, in the second half of this year, UBS may have to venture further because the write-down of assets 5,000,000,000 U.S. dollars. The news Monday UBS shares fell again, or more than the banking sector suffered heavy losses. In fact, UBS has been subjected to the current round of financial market turmoil hit banks in Europe. Switzerland Sonntags Zeitung newspaper said that UBS will further reduce the risk of investment in the second half of 5,000,000,000 U.S. dollars in mind. The newspaper said UBS is expected to be in its Oct. 2 meeting of shareholders prior to the disclosure of information related to write-down, but UBS declined to comment. Bank of Zurich, Switzerland (Zuercher Kantonalbank) head Claude - Zundel (Claude Zehnder), "The bad news is that the banking crisis is not over yet, the future will still have a large number of non-performing credit." He also stressed that "in view of the weekend Happened to further the possibility of asset write-down has risen. " Last month, UBS announced in the second quarter to further write-down of assets 5,000,000,000 U.S. dollars, a total write-downs rose to 420 million. At the same time, UBS announced that it would spin-off investment bank, said the bank is the investment banking dragged down by the core wealth management business into a deficit. As of GMT 8:15, UBS shares fell 10.1 percent to 21.14 Swiss francs per share; Credit Suisse fell 6 percent, to 49.50 Swiss francs per share. According to a UBS close to the insider, the bank Lehman's exposure to the "smaller" but he did not elaborate further.