Main Principles
BIS requires that before sanctioning any facilities under EFG the Bank has confirmed the following:
- the applicant’s plans are viable and would meet our usual commercial requirements for a loan.
- the Bank would wish to lend to the applicant and that all the applicant’s available collateral has been exhausted.
- EFG loans may be used to refinance existing overdraft borrowing (the current utilisation not the limit). The Bank must however be prepared to continue to make available an appropriate working capital facility following the refinance; it is not permissible to use EFG finance to simply terminate all existing overdraft debt and not provide working capital finance.
Read more about this topic: Enterprise Finance Guarantee
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