Secured lending CEE
With more and more players active in the corporate lending and secured finance markets across the CEE region, and multi-jurisdictional CEE transactions happening on a regular basis, counsels are challenged to navigate their clients through fragmented legal frameworks in various jurisdictions often with different sets of secured lending rules and must-knows.
But is this really true? Does CEE secured lending mean that there is a need to reinvent the wheel in each jurisdiction when it comes to structuring secured lending transactions?
Not necessarily - Taking a close-up of the subject and having the home advantage across the CEE region, it becomes visible that the dos and don'ts of secured lending in CEE are quite similar once existing stumbling blocks for each jurisdiction have been identified.
Did you know that:
Registration costs in Austria can be a deal breaker for mortgage secured lending if (outlandishly high) registration costs of 1.2% of the secured liabilities are not factored in accordingly when modeling the financing for Austrian assets?
Syndicated lending in Montenegro and Macedonia can be a headache as these are the only countries in CEE that do prohibit the establishment security agencies?
Only the minority of jurisdictions in the region allow for the establishment of security over a pool of assets comparable to a UK floating charge?
Are you able to factor-in the different time periods for registering security interests correctly for each CEE jurisdiction when setting-up the timeline for a CEE secured finance transactions?
If not, stay tuned! In 2020 we will share the knowledge of our CEE secured lending experts and will be opening Schoenherr's CEE secured lending know-how to our clients, with an in-depth periodical publication on CEE secured lending.
Get a better feeling on how secured lending really works e.g. through country comparisons for each collateral class.