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In: Business and Management

Submitted By Kulan
Words 830
Pages 4
 Salau Abdul Malik Olarinoye  Nurul Huda Binti Yahya 810115 810572

 

Razlina Binti Romli
Aliana Shazma Amir Binti Amir Nur Diyana Binti Zamro

813298 812395


The way that could be taken by Citigroup in facilitating Gretz flow of funds are as follows:  Loan

a.Short-term financing
Citigroup may act as a creditor to Gretz to provide short-term loans in any currency required by international money market.

b.Medium-term financing
Citigroup may also provide a medium-term loan to Gretz in any currency required by international credit market. In this kind of financing, Citigroup is again will act as a creditor to Gretz.

The way that could be taken by Citigroup in facilitating Gretz flow of funds are as follows:

c.Long-term financing
Citigroup may help through placing the bonds issued by Getz into the international bond market. In this case, Citigroup no longer acting as a creditor but as an intermediary  Foreign Exchange Gretz able to obtain any required currency in the foreign exchange market by Citigroup.  Investment Citigroup may also help Gretz by placing new stocks issued in the foreign exchange market.

Some characteristic that might be considered by British subsidiary are: i. Exchange rate risk this exchange rate risk represents the potential for the value of bonds to decline from the investor’s perspective. This can be applied to this case due to Gretz Tool Company has more than one subsidiaries and facing with this situation. ii. Credit risk this company need to consider against its potential for default, whereby interest or principal payments to investors are suspended temporarily or permanently.

iii. Interest

rate risk this can be seen for a long term…...

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