In the event of a change of control of the company after the conclusion of the loan agreement, lenders may terminate the credit facilities and commit the advance of the capital and interest of the amount already paid. Since effective control of the enterprise rests with the shareholders, it generally indicates that the provisions will come into force when a particular person or group of individuals no longer has control of the enterprise. This clause, such as the substantial adverse effects clause, can only be negotiated by borrowers on matters such as the termination and repayment of the loan to lenders who wish to withdraw from the credit agreement or a longer notice period to arrange new lenders. Carve-outs and exceptions can also be included, for example.B. termination and repayment are caused only by changes in control, which leads to a deterioration in the value of the company`s credit. The UAE has seen modest economic growth, with the UAE`s central bank estimating annual GDP growth at 2.3% in 2019. This corresponds to 1.7% for 2018, but remains lower than the 3.5% previously forecast by the central bank of the United Arab Emirates at the end of 2018. UAE banks remain well capitalised and funding costs have fallen in 2019 as BEIOR has trended to fall and the UAE Central Bank lowered its key interest rate by 75 basis points during the year to 2.00%, mimicking cuts by the US Central Bank. These factors have supported the credit environment; However, banks and other credit market participants (particularly in the area of project finance) remain cautious and we continue to see that financial institutions are falling back on long maturities, with export credit agencies and development agencies playing a greater role in financing major projects in the region. In line with this trend, we have also seen a return of mini-perm bridge credit and equity structures for project finance and project bonds – we expect these trends to continue in 2020.
We also note that at the time of writing this chapter, geopolitical tensions have emerged between the United States and Iran, which may have an impact on the United Arab Emirates and, more broadly, on the region. While the United Arab Emirates may provide for cross-cutting general security agreements, the General Practice and Approach of the Council is, to the extent possible, to conclude separate agreements. Since some investment documents can be certified notaries and registered with different public authorities, especially with regard to land and shares, this can create uncertainty and lead to additional costs if they are included in the same agreement. Yes, the protection of receivables is typically provided by an assignment of the contractual rights of the contract on which the receivables are based. . . .