COVENANTS AS INNOVATIVE INSTRUMENT OF CREDIT RISKS' FINANCIAL MANAGEMENT
This article discloses the essence of definitions «covenant» and «financial covenant». The classification of covenants with their dividing on positive and negative, financial and non-financial are developed. The systematization of common in foreign and domestic practice financial covenants is made. The main measures concerning the legislative fixing of covenants in Ukraine and also other recommendations concerning the use of financial covenants by the participants of contract relations for the minimization of losses and prevention of risks during the crediting and investing processes are proposed.
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Keywords: covenant, default, innovative financial instrument, credit risk, covenant demand, creditworthiness, risk portal, financial covenants. |
THEORY
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