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

AXIMAS bvba/sprl
BE0445345014
Call toll-free 0800 32020
E-mail: info@aximas.com
Supervising authority
Antwerp
Van Dornestraat 198
2100 Antwerp
+32 3 7727233
antwerpen@aximas.com
Brussels
4 rue de la Presse
1000 Brussels
+32 2 227 11 02
brussels@aximas.com
East- & West-Flanders
Hofstraat 269
9000 Ghent
+32 9 233 34 00
gent@aximas.com
Leuven / Limburg
Doornstraat 19
3370 Boutersem
+32 16 29 97 97
leuven@aximas.com