Welcome to the first edition of Loan Notes, our new bulletin containing news and guidance on legal and documentary issues in the EMEA loan markets, which we plan to publish twice a year. Please use the links below to read the articles. We hope you find them useful. 

In the news

• EURIBOR – a renewed push for adoption of permanent fallbacks
  The first half of 2023 has seen a renewed focus on EURIBOR fallbacks, with both the Working Group on Euro Risk-Free Rates and the LMA publishing new guidance. This article considers what parties to new EURIBOR-based transactions should be doing now to take this into account. 
  
  
• Credit Servicers Directive – practical impacts on syndicated lending
  The EU Directive on Credit Servicers and Credit Purchasers regulates the sale, purchase and servicing of non-performing loans originated by EU banks. With EU member states required to implement it on 30 December 2023, we explain how this will impact syndicated loans.

Product spotlight

• Trade Finance: The Electronic Trade Documents Bill – a major breakthrough in digitising trade finance?
  The Electronic Trade Documents Bill is expected to become UK law at some point in 2023. In this article we consider its likely impact on the digitisation of trade finance.
  
  
• Export Finance: What is the point of the Isabella clause?
  An ECA-supported facility agreement in a buyer credit will usually contain an "Isabella clause". We explain what the clause typically covers and consider how important it is for finance parties to include it.

Jurisdiction spotlight

• Germany: Demystifying Schuldschein
  Many businesses are now using Schuldschein loans as an alternative to borrowing under a syndicated facility agreement or issuing debt securities. We explain its key features, and why is it proving so attractive to both borrowers and investors.
  
  
• Scotland: Moveable Transactions (Scotland) Act 2023 - a revolution in Scots law
  We explain how the radical changes introduced by this Act will simplify funding income streams and taking security under Scots law.
  
  
• UAE: Are unsecured financings now prohibited by UAE law?
  This article summarises a recent change in UAE law that has created some uncertainty over whether unsecured financings remain permitted under UAE law.