Spread the news

International Olympic Committee (IOC) has entered into a flexible borrowing arrangement known as a “revolving credit facility” with a number of Swiss banks.

The four-year arrangement took effect about six months ago in late January.

Its existence is disclosed in the small print of the Lausanne body’s new annual accounts.

Revolving credit facilities normally enable borrowers repeatedly to draw down and repay funds in line with requirements throughout the stipulated period up to an agreed borrowing limit.

It may be relevant to point out that the new agreement came at a time when the spread of COVID-19 and consequent postponement of the Tokyo 2020 Games would have been impacting heavily on prior cash flow projections.

read also:US, Mexico favoured in Gold Cup quarters matchups

The maximum amount that the IOC can borrow under the facility is not disclosed.

The amount utilised at the date of the approval of the 2020 financial statements by the IOC Executive Board is said to be zero.

The IOC says, somewhat impenetrably, that the facility “maintains certain reporting requirements, conditions precedent, affirmative covenants and financial covenants”.

The new accounts also reveal that the IOC’s bank borrowings amounted to more than $130 million (£95 million/€110 million) at the end of 2020.

This was comprised of some $129 million (£93.9 million/€109 million) of long-term debt and $2 million (£1.5 million/€1.7 million) of short-term borrowings.

The IOC took out a loan of CHF120 million (£96 million/$131 million/€110.6 million) to finance the construction of its new headquarters in the Swiss lakeside city where it has been based for more than a century.

As security, CHF40 million (£32 million/$43.5 million/€37 million) of Olympic Foundation assets were pledged in favour of the bank.

Borrowing costs are said to have been “recognised at the rate of 1.46 percent”.

The United States dollar depreciated against the Swiss franc between end-2019 and end-2020, increasing the amounts designated as bank borrowings in the IOC’s US dollar-denominated accounts.

As previously reported, the IOC posted an overall deficit of $55 million (£40 million/€46.7 million) for 2020.

The post International Olympic Committee enters into flexible borrowing arrangement  appeared first on Sporting Life.

Click to rate this post!
[Total: 0 Average: 0]

Spread the news
CONTACT US : support@melodyinter.com
Previous articleThai army secretly sought Moderna vaccines denied to public: leaked document
Next articleTroubled Tokyo Olympics set to open under Covid cloud


Please enter your comment!
Please enter your name here