Syndicated Credit

Today’s world moves largely to economic resources, since they allow to be in a constant development in the obtaining of different objects and as a means to supplement or meet different needs that allow having the optimal conditions of life, so money is a crucial point within a constant progress of lifeby which people are in a constant need to obtain such resources, to obtain things of vital importance or to begin searching or to implement development projects, which brings in many cases the need to resort to loans or credits to give a prompt solution to obtaining money and thus begin to generate profits by taking advantage of favourable situations that will give better results and that occur rarely; so until companies, Governments and other large economic figures resort also to credits, but for the amount of money requested, resorting to a special credit, which is the syndicated credit facility, where the requested amount can mean huge facts and figures, which requires certain special conditions to enable the syndicated credit to give. So as in the understanding of the syndicated credit is requested a large amount of money. In order to meet such a request it is necessary that various financial institutions and banks are together to be able to collect the money quickly, with the aggregate of which is shared not only put certain amount, but also the risk of the whole banking group against non-payment by the debtor. The also syndicated loan for a large amount, has the characteristic of being long term; i.e. the total cancellation of this appropriation may occur approximately between 5 and 7 years after the initiation of the debtor-creditor relationship and in certain occasions it may be extended, but in a general comparison, the syndicated credit usually does not exceed 10 years. Other components that are part of the syndicated credit is the characteristic of a particular operation, which in simple terms means that the interest rate that is given the syndicated credit facility is within a variable interest, this because that is a loan or credit for long-term, so it must operate with variable types. So that an entity can obtain a syndicated credit facility available basically 2 ways: in one entity proposes and communicates the desire to do a syndicated credit to the financial market so will receive different offers of several groups which conform to the conditions of the syndicated loan, then analyze the different offerings the entity accepted the most suitable option. The other option, is that the entity is directed to a single Bank and raises the desire to do a syndicated credit facility, if the Bank accepts this will look for the other members of the group. This figure of the syndicated credit facility we must distinguish the positions, so if a Bank managed all this will be the Agent Bank, bringing more capital will be the heads of row and those who contribute less participating.

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