Funding loss for the banksters limited by law in Belgium

The law of 21 december 2013 banns the immoral practice of funding loss on corporate financing

Until recently, banks(ters) were allowed to work with obscure financing contracts and corporations usually ended-up paying a huge funding loss when they wanted to pay back the loan (for instance when the property was sold). Contrary to the funding loss for private loans equal to a maximum of 6 months interest, corporations usually ended-up paying the banksters an extorsion sum that could easily equal 10% of the loan.

The law of 21 december 2013 has changed this practice:

1. The bankster has to propose the best available solution to the company;

2. If the best solution was not offered, a court of law can overwrite the agreement & change the financing to the best available solution;

3. Funding loss on loans of max 1 million € in case of early refund is limited to 6 months interest 

31/12/2013 by Patrick Vermuyten

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