Club-Deal Credits May Become More Popular in Ukraine
OREANDA-NEWS. July 15, 2008. "Club-deal credit is one of the kinds of the international bank credits, that is granted to borrower by an arrangement of some financial institutions, so-called "club", including banks with which the borrower has the relations, and implies the division of credit risks between them", - Igor Egorenko, the Head of Funding & Investor Relations International Business of OJSC "RODOVID BANK". According to him, such type of financing looks like a standard syndicated credit, however in a club-deal credit participating in loan of some creditors is the result of private negotiations of parties, but not syndication at the opened market. "Comparing with syndicated credits, the volume of the club-deal financing is comparatively little, and the term in most cases makes one year", - an expert marked.
According to RODOVID BANK’s expert, the club-deal credits are not so popular in Ukraine. "The point is that many domestic banks have long-term relationships with foreign partners, ready to give financing on similar terms. There is also a question of cost of loan that exceeds the cost of market transactions", - Igor Egorenko said. According to him, today such type of transactions can be claimed in a greater measure.
Having analyzed the instruments of bringing in of external resources, the RODOVID BANK’s expert marked that today, due to the limited liquidity at the international market, uncertainty of investors and creditors most attractive and comfortable are ordinary bilateral credits. As this type of international funding is most simple and rapid in registration does not depend on a situation at the opened market.
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