Research On The Protection Of Lenders' Rights In International Syndicated Loans

Since the Word War II,international syndicated loans have been greatly developed,although the depression in 2007 took a bad effect on them.In terms of international syndicated loans,they are always related to a lot of money,which will be lent for a long period.In the same time,international syndicated loans often involve facts of multinational,so lenders in international syndicated loans assume great pressures,especially when borrowers cannot pay back the money they borrowing.The article will put an eye on theprotection of rights of lenders in international syndicated loans.First,from the perspective of the whole lenders of an internationalloan,they can take advantage of contracts,securities to reduce the potential losses and get money back as much as possible.Second,from the perspective of different lenders which play different roles in syndicated loans,they have different approaches to protect themselves.For example,in terms of the leading banks,they should be careful when they give information memorandum to other banks or financial institutions.They should ensure that statistics in info memorandum are accurate and all important information has been reported.What is more,the leading banks can insert clauses that reduce their liabilities in contracts.In terms of the agent banks,they should observe the contracts and perform obligations according to provisions in the contracts.They can not avail themselves of the privilege positions.In terms of other lenders,they should choose borrowers who have ability to fulfill the obligations in contracts before theyjoining loans.The article will use several common methods to do the research,such as case analysis,normative analysis,logical analysis and so on.I hope the article will shed light on lenders in reality to protect their rights better in an international syndicated loan.