ro fr
universul juridic magazin

Risk in the loan agreements, with special regard to currency risk

The concept of risk in the credit agreements shall be understood in the general context of the meaning which this concept requires, respectively that of injurious event whose occurrence is uncertain as regards either its implementation, or the moment of its implementation. As regards the credit agreements, the issue of risk refers, as a priority, to the impossibility of reimbursing the loan as a consequence of the exaggerate increase of costs which must be covered by the borrower. The possibility of repayment may be affected as a result of the political risk, of the force majeure risk, of the risk regarding the change in the interest rate regarding the variable-rate loans or the exchange rate risk. The variation of the repayment obligation to a burdensome end for the debtor may be caused by the external items of the agreement, such as the acts of God, the legislative amendments, or items which are closely connected with the contractual conditions, such as the increase of the variable interest rate by applying the calculation formula provided for in the agreement or, in case of loans granted in foreign currency, the decrease of the value of the national currency as compared to the currency into which the loan was granted. Furthermore, the contractual risk in this matter must be referred to the condition of the creditor, as well. To this end, the banking institution is subject to a general risk of the credit activity, arising from the conception of the impossibility of repayment of the borrowed amount, under the conditions of non-existence of certain guarantees which should be sufficient for the purpose of the debt recovery.