Hassan Moradzadeh; Neda Askarinia
Abstract
Banks play an important role as an intermediary in the financial system between
the lenders and applicants of financial sources. They absorb the financial
sources of customers and present them to applicants. Their financial relations
are arranged on the basis of the credit rating of their applicants. ...
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Banks play an important role as an intermediary in the financial system between
the lenders and applicants of financial sources. They absorb the financial
sources of customers and present them to applicants. Their financial relations
are arranged on the basis of the credit rating of their applicants. The financing
restrictions and complexity of banks relations and inherent risk of financing
have made the banks to design a model to fund their financial sources and
distribute their various risks. One of these models is financing by using
syndicated loans. Since most of the big projects need a high amount of financial
sources, the use and significance of syndicated loans is increasing. In this paper,
we tried to examine the concept and structure of syndicated loans by using an
analytical and descriptive model which explains the necessity of using this
method in the legal and economic system of Iran. We concluded that the main
reasons given for non-use of this method are the lack of adequate legislations in
this field and the absence of information transparency in the contractual
structure of such credits as well as the legal rules governing relations between
syndicate members.
