What Is Involved in Underwriting Commercial Loans?
International commercial lending is the borrowing of money from foreign lenders by foreign borrowers in the international financial market. Lenders and borrowers are legal and natural persons in different countries. Debtors are borrowers from various countries, including banks, government agencies, corporations, and international institutions; while creditors are foreign loan banks. The loan bank can be exclusive or a syndicate of banks. The issuance and recovery of international commercial loans are in the form of monetary capital. The currency used for international commercial loans is limited to more than a dozen currencies that can be freely converted. The major ones are the US dollar, the German mark, the Swiss franc, the Japanese yen, and the British pound. Forms of international commercial loans, including syndicated loans, joint loans, bilateral loans, etc. [1]
International business loan
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- International commercial lending is the borrowing of money from foreign lenders by foreign borrowers in the international financial market. Lenders and borrowers are legal and natural persons in different countries. Debtors are borrowers from various countries, including banks, government agencies, corporations, and international institutions; while creditors are foreign loan banks. The loan bank can be exclusive or a syndicate of banks. The issuance and recovery of international commercial loans are in the form of monetary capital. The currency used for international commercial loans is limited to more than a dozen currencies that can be freely converted. The major ones are the US dollar, the German mark, the Swiss franc, the Japanese yen, and the British pound. Forms of international commercial loans, including syndicated loans, joint loans, bilateral loans, etc. [1]
- Mainly include: loans from foreign banks (institutions),
- Income Statement of International Commercial Loans
- First, funding methods are flexible and diverse
- Borrowers can choose different funds according to their needs
- 1) International commercial banks and syndicated loans
- foreign
- General requirements for borrowing international commercial loans
- In general, under the condition that the country's foreign exchange balance is good and the foreign exchange reserve is abundant, it should not be used in large quantities.
- Preparation of project proposal and feasibility study report
- Project unit according to country
- The National Development and Planning Commission shall, in accordance with the national industrial policy, development planning, and application from the project unit, approve proposals for borrowing international commercial loan projects. Projects with a loan amount exceeding US $ 5 million shall be submitted to the State Planning Commission for approval. The Autonomous Region Planning Commission submitted an application for the use of international commercial loans to the State Planning Commission.
- After approval of the loan scale, the planning committee of the autonomous region will transfer the project planning committee of the union city where the project is located, and the project unit will entrust the financial institutions with external financing rights in the region to undertake the loan.
- After the approval of the international commercial loan scale, the project unit started to prepare and report the feasibility study report. Financial institutions conduct loan evaluations in conjunction with the project feasibility study report, and submit evaluation opinions to the head office of the external financing window, and the head office will raise funds externally.