BRIC Nations Experience 20 Percent Fall in Syndicated Loans

BRIC nations - Brazil, Russia, India and China - have experienced a 20 percent fall in loans from companies in 2008, according to a report from tracking firm Dealogic.

“BRIC combined syndicated loan volume hit USD 144.2 billion in full year of 2008, down 20 per cent from USD 180.2 billion recorded in 2007," said the report.

The last quarter was especially difficult, accounting for the majority of the down performance. In that quarter syndicated loan volume dropped to $23.1 billion, with only 50 deals being made during that time. That's the worst quarter since the first quarter of 2004, where only $13.2 billion was loaned. Only 38 deals were closed during that period as well.

Even so, other regions performed poorly too, with BRIC countries gaining in syndicated loan share by 1 percent globally. In 2008 they grew share to 5 percent from 2007's 4 percent, and 2006's 3 percent.

* Syndicated loans are simply a group of financial institutions offering financing while sharing the risk together.