European Credit Association

A team of industry professionnals in the process of establishing a new player in the sindicated credit market, the European Credit Association (ECA). The syndicated loan market is currently dominated by the Loan Market Association (LMA), which was established in 1996. The Template of credit agreement currently in use under the LMA is based in English common law. The ECA will aim to adapt the credit agreement Template to improve its validity under civil law in continental European countries. As a result of the Financial crisis and the restructuring of borrowers’ debt, credit agreements previously signed under the LMA template are, according the ECA, no longer fully valid under civil law. This therefore creates an imbalance between lenders and borrowers in terms of their rights ans obligations.

With the support of lenders and borrowers, the ECA will be looking to put new market practices in place and to balance the position of both parties involved in syndicated credit agreements.