U.S. and European Loan Markets: Comparative Approach to Sanctions Provisions

Title: U.S. and European Loan Markets: Comparative Approach to Sanctions Provisions

Jurisdictions:USA / EU

Authors: Nicola Ezra, M. Angella Castille, Matthew R. Levy and Enis Hallaçoğlu

Law firm: Faegre Baker Daniels

Subject:

Economic sanctions, when imposed by a regime, have the purposes of advancing national security, foreign policy or economic goals. Sanctions can take multiple forms, including restrictions on investment, restrictions on trade, restrictions on travel, and economic or financial sanctions intended to freeze the assets of the sanctioned subject or to block access to capital markets and financial services.

Financial sanctions imposed by any number of jurisdictions can have significant relevance in international loan market transactions, and a breach of financial or trade sanctions carries serious reputational risks for a financial institution in addition to the risk of heavy financial penalties.

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