Syndicated Loans March Ahead

Federal Law No. 486-FZ on Syndicated Loans and Amending Certain Legislative Acts of the Russian Federation dated 31 December 2017

Russian authorities have been looking to regulate syndicated lending for some time. With Russian companies and financial institutions suffering from limited access to foreign debt markets, economic development depends significantly on the effectiveness of domestic financial models. The syndicated financing model, whereby funds are provided by a group of lenders (the eponymous "syndicate"), offers substantial growth potential. To that end, the government determined that it is vital to improve the legal regulation of syndicated lending transactions.

Revolution or evolution?