A bank using this technique of funding must charge a higher spread on its own euro-credits than it is paying.

Subsequent chapters will build upon many of the concepts covered, especially country risk, euro-credits and euro-bonds.

Syndicated euro-credits also enable banks to spread or diversify their risks by having a wide loan portfolio rather than being over-committed to a few customers.

Medium-term euro-credits : Medium-term syndicated loans are sometimes used by LDCs' banks to fund loan books.