New Guidelines on Syndicated Loans in the PRC

November 30, 2007 | BY

clpstaff &clp articles

The new Guidelines standardize practices in China's nascent syndicated loan market. Updated areas include expanding the role of the agent, and making changes to the roles of the agent, lenders and borrower.

By Brett W. King, partner, Paul, Hastings, Janofsky & Walker, Hong Kong office and Karen Tang, partner, Paul, Hastings, Janofsky & Walker, Shanghai office

On August 11 2007, the China Banking Regulatory Commission (CBRC) issued a Notice of the China Banking Regulatory Commission on Printing and Distributing the Guidelines for Syndicated Loan Business (the Guidelines), which regulate syndicated lending practices in the People's Republic of China (the PRC). The Guidelines update and supersede the Syndicated Loans Provisional Measures (the 1997 Regulations) issued by the People's Bank of China in 1997.

Effective from the date of issue, the Guidelines are formulated by the CBRC in accordance with the Bank Supervision and Administration Law of the PRC, the PRC Commercial Banking Law, PRC Contract Law (中华人民共和国合同法), PRC Security Law  (中华人民共和国担保法) as well as other laws and regulations.

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