Break clause and Credit Guarantee Scheme: Difference between pages

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imported>Doug Williamson
(Create the page. Source: The Treasurer, May 2012, p19.)
 
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A break clause is a clause in a derivatives contract or other contract which provides for the release of the parties from further obligations under the contract, following the occurrence of a relevant event.
(CGS).  


For example, following a deterioration in the creditworthiness of one of the parties.
A UK Treasury scheme under which banks and other financial institutions could obtain credit insurance effectively backed by the government in return for a fee (designed to be calculated on a full commercial basis).


== See also ==
The CGS was launched with the aim of making it easier for financial institutions to borrow money. 
* [[Derivative]]
The Scheme was closed to new issuance in 2010.
* [[Credit]]
 
(Not to be confused with the Export Credits Guarantee Department, which relates to ''exports'' from the UK.)
 
==Related words==
 
* [[Asset purchase facility]]
* [[Export Credits Guarantee Department]]

Revision as of 17:01, 5 November 2012

(CGS).

A UK Treasury scheme under which banks and other financial institutions could obtain credit insurance effectively backed by the government in return for a fee (designed to be calculated on a full commercial basis).

The CGS was launched with the aim of making it easier for financial institutions to borrow money. The Scheme was closed to new issuance in 2010.

(Not to be confused with the Export Credits Guarantee Department, which relates to exports from the UK.)

Related words

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