Matt morphed into a sock-tycoon trying to get a loan from the European Investment Bank, with Allar acting as his not-so-knowledgeable lawyer. Explaining loan terms are Garbiela Barufi, EIB loan officer for corporates in Iberia, and Martin Arnold, head of unit for corporate lending in the region. They help us come to terms with tenor of a loan, grace period, availability period, unsecured loans, senior and subordinated loans, floating and fixed interest rates, EURIBOR, the disgraced LIBOR and SONIA. We also learn about the pricing grid or pricing ratchet, and then we discuss repayment profiles, such as balloon, bullet, sculpted etc. The balloon, for example, doesn’t refer to either the borrower or the bank going bust, at all! Instead, it means the repayments are small in the beginning, and balloon towards the end. And the bullet refers to the silver bullet, meaning it’s a loan that is the answer to all of your problems. No, just kidding, please consult a qualified expert before making any financial decisions, and remember, Matt and Allar are only (barely) qualified to be doing this podcast. Remember to subscribe to this podcast and tell others! Simply look up ‘A Dictionary of Finance’ on iTunes, Acast or Spotify. Get in touch via Twitter with your feedback (@EIBMatt or @AllarTankler).