Exclusive: Russian loan standardisation to debut in 2013

Author: Danielle Myles | Published: 4 Sep 2012

A set of standardised loan documents governed by Russian-law will be rolled out to banks from next year, IFLR can reveal.

Their introduction should kick-start domestic loan syndications – a potentially highly lucrative market which has been crippled by uncertainty over contract and collateral enforceability.

Under the auspices of the Association of Regional Banks of Russia (Asros), a committee of international law firms and 30 local and foreign banks have been working on a market precedent since April 2011.

“We hope that the first deals under the standardised documentation will be in the middle of next year,” said Asros’s Oleg Ivanov, who is spearheading the project.

They will not be Loan Market Association (LMA) documents, but will be based on the LMA model and aim for the same economic effect.

A position paper has been circulated and the law firm to draft the first standardised document...