Loans in foreign currency pools are typically granted to exporters to companies that have been awarded tenders for the execution of works abroad. Often the pool is engaged in a performance that includes various types of cash loans and signature credits : sureties, foreign currency advances on future collections, simple credit openings (frequently in the case where the company has entered into a subcontracting agreement). supply with a national company).
a) loans in currencies in “short-term ” pools that generally take the technical form of advances. The rate is revisable on maturity and the various extensions and is commensurate with the cost of foreign currency deposits increased by a spread; the interests are liquidated at the time of the various extensions and the extinction;
b) loans in currencies in medium-term pools take the technical form of the loan . The rate, which can be reviewed quarterly or semi-annually, is commensurate with a reference parameter increased by a spread; this parameter is generally the LIBOR (London interbank offer rate) which is the “letter” rate applied on the London market to euro-currency deposits.
An interesting example of pool financing is co-financing in which a supranational development body (which provide short-medium term funds at market conditions) intervene in a coordinated manner. The co-financing can be of the joint type (when the quotas of the single participants are not identified) and of the parallel type (when these quotas are indicated separately).
Cash or foreign currency loans can be combined in numerous alternatives and also with direct loans between the operators themselves, in order to avoid exchange risks. However, the substitutability is conditioned by the constraints imposed by the currency regulation which aims to control the transfers between the foreign currency management based on the monetary policy objectives.
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