SADC Banking Association and the African Loan Market Association are
working toward faster, more efficient loan processes.
T
here is widespread recognition among banks and
law firms in South Africa, that standardised loan
documentation could help reduce the high cost of loan
transactions and speed up the transaction process.
Standardised documentation will also develop the
secondary market for loans and facilitate syndication of loans.
While efforts to develop and implement standardised documents are
still in the early stages, there are signs of progress.
‘Strong support exists in the South African banking and finance
sector for the work of the African Loan Market Association
(ALMA), which is spearheading the drive to introduce standardised
loan documentation,’ says Elliott Wood, a director in the banking
and finance practice at Werksmans Attorneys. ‘The thinking is
that more cost-effective, efficient transactions would stimulate the
market, particularly the secondary and syndicated loan market, to
the benefit of lenders and borrowers alike.’
ALMA is a non-profit trading association formed in September
2011, to support and grow the African syndicated loan market
by giv