Provision of information and Schengen Area: Difference between pages

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imported>Doug Williamson
(Added internal explanation of Chinese walls)
 
imported>Doug Williamson
(Create the page. Source: Schengen visa information website: http://www.schengenvisainfo.com/schengen-visa-countries-list/)
 
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A provision of information covenant requires the borrower to provide information to enable the lender to monitor the borrower’s credit risk.  
''European Union (EU)''.


Such information routinely includes copies of published financial information and circulars to shareholders. It is unlikely that treasurers will see any problem with this.
Collective term for the 26 European countries - 22 EU member states, plus four other countries - which have open borders between them.




Ideally from a corporate borrower's perspective, the borrower would only provide published information, but weaker credits are unlikely to be able to negotiate this. Generally the level of information required increases as the credit quality of the borrower falls, and can include budgets, forecasts and management accounts.
The 22 participating EU member states are:


Problems may arise when the borrower is a quoted company and the information sought is unpublished and therefore possibly price sensitive, especially if the lender is a universal bank conducting both lending and share dealing activities. Even though most banks will have internal 'Chinese walls' (barriers designed to prevent transfer of confidential information between departments), treasurers may wish to obtain additional confidentiality undertakings bearing in mind regulatory requirements imposing a ‘continuing obligation’ of the avoidance of a false market.
:Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden.


The other four members of the Schengen Area are:
:Iceland, Liechtenstein, Norway and Switzerland.
====Four EU member states expected to join Schengen====
The following EU member states are expected to join the Schengen Area in due course:
:Bulgaria, Croatia, Cyprus and Romania.
====Two EU member states opted out of Schengen====
Ireland and the United Kingdom (UK) have opted out of the Schengen arrangements.
A referendum held in the UK in June 2016 resulted in a vote in favour the the UK leaving the European Union itself.
====Origins====
The originating Schengen Agreement was signed in 1985 in the Luxembourg village of Schengen, by five countries:
:Belgium, France, Germany, Luxembourg and the Netherlands.


Where non-bank lenders are involved in bank type lending arrangements, this issue of confidentiality becomes more extreme. While banks have established procedures for keeping information separate from different areas, non-banks do not have this sophistication. One solution is to restrict information to certain lenders to only published data and indeed some presentations are managed in two parts to deal with this.




== See also ==
== See also ==
* [[Covenant]]
* [[Brexit]]
* [[Financial covenant]]
* [[European Economic Area]]
* [[Negative pledge]]
* [[European Union]]
* [[Non-financial covenant]]
__NOTOC__

Revision as of 17:32, 26 June 2016

European Union (EU).

Collective term for the 26 European countries - 22 EU member states, plus four other countries - which have open borders between them.


The 22 participating EU member states are:

Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden.

The other four members of the Schengen Area are:

Iceland, Liechtenstein, Norway and Switzerland.


Four EU member states expected to join Schengen

The following EU member states are expected to join the Schengen Area in due course:

Bulgaria, Croatia, Cyprus and Romania.


Two EU member states opted out of Schengen

Ireland and the United Kingdom (UK) have opted out of the Schengen arrangements.

A referendum held in the UK in June 2016 resulted in a vote in favour the the UK leaving the European Union itself.


Origins

The originating Schengen Agreement was signed in 1985 in the Luxembourg village of Schengen, by five countries:

Belgium, France, Germany, Luxembourg and the Netherlands.


See also