Parallel credit
Parallel loans ( English "parallel loans" ) are in banking credits which at least two mutually independent release, credit contracts with a borrower to be closed for the same purpose.
General
At AKA Export Credit , the parallel credit was an export credit which , since 1952, has been made available simultaneously from its ceiling A and B combined. Since ceiling B ( discount credit ) was discontinued in June 1996 , AKA no longer offers parallel credit . The Metakredit is in Germany of two banks together in the form of syndicated loan ( quiet interior consortium grants), and is not usually a parallel loan. Typical cases of meta credit are joint loans between savings banks and Landesbanken as lenders and medium-sized companies as borrowers. A similar construction can also be found in the cooperative banking sector.
The World Bank had begun parallel credit in 1974. It connects the credit agreements of the commercial banks through a “Memorandum of Agreement” with the granting of credit for the same project. In doing so, it must be ensured from a legal point of view that these two loan agreements are coordinated so that the loan agreements do not collide with one another.
Legal issues
As with a consortium, side-by-side loans arose from the necessity that the total credit risk seemed too great for one lender and that two or more lenders had therefore shared the entire loan. In the case of parallel loans, the lenders are legally independent of each other and do not act for the same account, i.e. they do not form a consortium. An internal relationship between the lenders does not arise through parallel loans.
Since there are at least two legally independent loan agreements with the common debtor for the same purpose, there is a need for a coordinated grant of credit. This can be achieved in particular by two clauses, namely the "cross-reference clause" and the cross-default clause . The cross-reference clause is a clause that refers to the other parallel loan agreement and has the aim of legally coordinating the granting of credit for the parallel loan. It expresses the fact that another credit agreement exists and expressly refers to certain passages in this agreement. It makes it clear that these passages of the contract must be used to interpret the contract containing the clause. By using a parallel loan in all loan contracts, the contract coordination is ensured. The cross-default clause, in turn, regulates the possibility of loan termination if there are options for termination in the other loan agreements of the parallel loan, even if there is no termination option in the contract using the clause. This can prevent the debtor from unilaterally changing the repayment sequence.
Back-to-back loans
So-called back-to-back financing represent a cross-border modification and further development of the parallel loan. This intends a German company to grant its foreign subsidiary loans, however, is due to the foreign law ( foreign exchange restrictions ) as for the ban on shareholder loans in private international law because prevented. Instead, the German company engages a bank and provides it with an investment that the bank forwards congruently as a bank loan to the foreign subsidiary. Multinational corporations vary the back-to-back credit with different currencies , the exchange rate risks of which are hedged by currency swaps. These currency swaps were originally created from back-to-back loans.
See also
Individual evidence
- ↑ Peter Derleder u. a. (Ed.), Handbook on German and European Banking Law , 2008, p. 705.
- ↑ F. Studnicki / A. Lachwa / J. Fall / E. Stabrawa, Introduction to Cross-reference Clauses in Legal Texts , 1992, p. 214.
- ^ A b Andreas Oehler , Matthias Unser: Finanzwirtschaftliches Risk Management , 2002, p. 124.
- ↑ Susanne Czech-Vinkelmann, Handbuch International Business , 2008, p. 321.