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Strategies & Market Trends : Asia Forum

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To: Ron Bower who wrote (6327)9/10/1998 1:42:00 PM
From: Paul Berliner  Read Replies (2) of 9980
 
Ron, it'll break your heart to know that they're actually lending more than ever, especially to risky concerns in countries like Mexico. That's why economists here always say that Japan has no knack for credit analysis.
I don't know if any Co. can get credit line, but I've read plenty of filings where there's nothing special about the company getting one
It's not a loan per say, its more like a credit card, where payment depends on the amount of usage. This isn't debt issued by the Co.s, i.e. it's ST, not LT (there's no collateral, except maybe receivables - the terms of the credit line usually depends on that the Co. keep a minimum working capital requirement and debt/equity ratio stipulated by the bank or else the covenent is violated and the full amount becomes due).
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