what would you expect from this situation

Just read your last update OP: I would expect that your horse will be shipped out of the country and sold if you let this man take it.
 
Again with the Mature thing He said he would very much ground work and hacking
Him out etc as I did say I would nt want him doing to much to soon
He said it would be long time before he would
Even enter a show ring
 
I'd walk away now too - sounds very dodgy to me. And surely you as the owner should write the loan contract not him - it's your horse not his! (Although i might be wrong on that but if i was to loan out a horse i'd be the one writing the agreement - dressage rider loaner or not!)
 
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