Glossary entry (derived from question below)
German term or phrase:
Bereitstellungszinsen
English translation:
commitment fees (also called stand-by fees)
Added to glossary by
Sandra Mehnert (X)
Nov 27, 2008 13:38
15 yrs ago
10 viewers *
German term
Bereitstellungszinsen
German to English
Bus/Financial
Finance (general)
Kontext: Derselbe wie bei Frage "Leistungsaufgabe"
Proposed translations
(English)
| 4 | commitment fees (also called stand-by fees) |
wfarkas (X)
|
| 4 +2 | commitment interest |
Peter Ward
|
Proposed translations
1 hr
Selected
commitment fees (also called stand-by fees)
Fees charged by lenders on the UNDRAWN portion of a committed loan facility, expressed as a percentage of the loan amount and collected monthly or quarterly. The percentage (ususally in the range of ⅛ to ¾ %) varies based upon factors such as cost of funds, credit standing of the borrower, market conditions, etc.
In principle, it is collected by the lender as a compensation for its reserve costs which it incurs for a committed facility regardless of whether the loan facility is used or not
In principle, it is collected by the lender as a compensation for its reserve costs which it incurs for a committed facility regardless of whether the loan facility is used or not
4 KudoZ points awarded for this answer.
Comment: "Thank you very much."
+2
6 mins
Peter Ward
United Kingdom
United Kingdom
Native in English
United Kingdom
Fast, reliable, technical, IT experience
Native in: English (Variants: US, Wales / Welsh, British, Scottish, UK) 
Works in: German to English
Related KudoZ points
:
4
commitment interest
...according to my "Dictionary of Legal and Commercial Terms"!
Peer comment(s):
| agree |
NatM
35 mins
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| agree |
Eike Katharina Adari-von Kleist (X)
1 hr
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| neutral |
wfarkas (X)
: 'Interest' is a misnomer in this context. Commitment fees or stand-by fees are collected by lenders as a compensation for the cost of reserves that have to be put up with the Central Bank for committed facilities.
2 hrs
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