INTRODUCTION
Few will now argue that the global recession has arrived.
Forecasts for 2009 are generally far from optimistic and the
effects are already being felt here in Australia. No more evidence
is needed than the recent Rudd Government response to the concerns
of commercial developers obtaining refinance for loans by foreign
lenders. The so called, "Rudd Bank" highlights that for
the next few years at least, existing borrowers will need to:
- consider carefully the ease with which they will be able to
refinance existing loans and
- ensure that existing facilities are conducted in exemplary
fashion.
In the current economic conditions where the credit market is
tightening, refinancing is becoming increasingly difficult and
lenders are becoming more risk averse, borrowers can anticipate
volatile lending conditions. Issues include tougher terms of
lending, much closer scrutiny of servicing patterns and compliance
with terms and conditions of facilities.
