back-to-back loan


back-to-back loan
One loan of a matching pair of loans in different currencies: A lends to B and B lends to A where the loans are of the same value. The back-to-back loan was a precurser of the currency swap and can be used to avoid currency restrictions.

Big dictionary of business and management. 2014.

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  • Back-to-back loan — A loan in which two companies in separate countries borrow each other s currency for a specific time period and repay the other s currency at an agreed upon maturity. The New York Times Financial Glossary * * * back to back loan back to back loan …   Financial and business terms

  • back-to-back loan — A loan in which two companies in separate countries borrow each other s currency for a specific time period and repay the other s currency at an agreed upon maturity. Bloomberg Financial Dictionary * * * back to back loan back to back loan ➔… …   Financial and business terms

  • Back-to-Back Loan — A loan in which two companies in different countries borrow offsetting amounts from one another in each other s currency. The purpose of this transaction is to hedge against currency fluctuations. With the advent of currency swaps this type of… …   Investment dictionary

  • back-to-back loan — /ˌbæk tə bæk ləυn/ noun a loan from one company to another in one currency arranged against a loan from the second company to the first in another currency. Also called parallel loan (NOTE: Back to back loans are (used by international companies… …   Dictionary of banking and finance

  • back-to-back loan — /bæk tə ˈbæk loʊn/ (say bak tuh bak lohn) noun an arrangement whereby two parties agree to offset a loan in the currency of one country against a loan in another country s currency …   Australian English dictionary

  • back-to-back — s.m.inv. ES ingl. {{wmetafile0}} TS econ. operazione finanziaria con la quale una società costituisce un deposito presso una banca come garanzia di un finanziamento di uguale entità che la banca stessa assegnerà a un beneficiario indicato dalla… …   Dizionario italiano

  • loan — money lent at interest.A lender makes a loan with the idea that it will be paid back as agreed and that interest will be paid for the use of the money. Glossary of Business Terms Temporary borrowing of a sum of money. If you borrow $1 million you …   Financial and business terms

  • loan stock — Stock bearing a fixed rate of interest. Unlike a debenture, loan stock may be unsecured. Exchange Handbook Glossary Long term debt issued by a company in order to raise capital for which interest is paid. Financial Services Glossary * * * loan… …   Financial and business terms

  • Loan origination — is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application through disbursal of funds (or declining the application). Loan… …   Wikipedia

  • Loan modification in the United States — Loan modification, the systematic alteration of contactual mortgage loan agreements, has been practiced in the United States since the 1930s. During the Great Depression loan modification programs took place at the state level in an effort to… …   Wikipedia