The following Banking & Finance practice note produced in partnership with NautaDutilh provides comprehensive and up to date legal information covering:
Please note that the below does not take into account any consequences or developments following a possible Brexit.
Ten years after the crisis, the financial sector in Belgium has undergone a metamorphosis. The banking system has contracted mainly because of restructuring operations in entities that received government support. Banks have adopted more traditional business models, with greater emphasis on domestic lending and deposit funding.
The credit cycle is intensifying, bolstered by both the economic recovery and the highly favourable financing conditions. In general, lending to businesses has continued to rise, while the growth of loans to households has stabilised. According to the Financial Stability Report 2018 of the National Bank of Belgium, the annual growth of business loans stood at 5.8 % in February 2018, compared to 4.9 % for households.
Since improving economic conditions and low interest rates increased the appetite for borrowing in the private sector, loans to non-financial corporations and to households accounted for the largest part of the €24bn expansion (to €590bn). While loans to non-financial corporations rose by €7bn (mainly to the manufacturing and wholesale and retail trade sectors), loans to households increased by €13bn (largely mortgage loans). More than half of those amounts were granted to Belgian
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.You should also consider if the proceedings will be
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
A limited company that proposes to issue redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006).Why do companies issue redeemable shares?A company may wish to issue redeemable shares so that it has an alternative way to return surplus capital to shareholders without
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