The Role of Commercial Loans in Euromarkets

Abstract

Capital exchange is essential in the current economy because it is a factor in basic production required to face the growing production demand from a growing demand in consumption. Financial markets constitute the place in which capital exchanges take place. Euromarkets are one type of financial markets in which a series of financing transactions occur. Loans given within the Euromarket a framework (called "Euroloans") became the most important financing instrument for states and private business. However, because of the debt crisis, the conditions under which Eurocredits were granted became restrictive and, therefore, their granting decreased. This produced a transition from financial intermediation to no intermediation.