back-to-back loan
A transaction where a sum borrowed for one country is secured by a deposit of the same…A transaction where a sum borrowed for one country is secured by a deposit of the same company (internal financing) or its stakeholder (external financing) at the same or two different operating companies of the lending financial institution (which may have different legal consequences under taxation law), motivated by hedging against currency fluctuations, restrictive banking regulations in the target country, tax avoidance or money laundering etc.
Meaning
1 sensesA transaction where a sum borrowed for one country is secured by a deposit of the same company (internal financing) or its stakeholder (external financing) at the same or two different operating companies of the lending financial institution (which may have different legal consequences under taxation law), motivated by hedging against currency fluctuations, restrictive banking regulations in the target country, tax avoidance or money laundering etc.
Gegendarlehen, Back-to-back-Darlehen
компенсацио́нный креди́тkompensaciónnyj kredít
Translations
2 languagesBy meaning 1
By meaning 1
Origin
From back-to-back + loan.From back-to-back + loan.
Wiktionary, CC BY-SA 4.0 · source
Forms
plural: back-to-back loans| Singular | back-to-back loan |
|---|---|
| Plural | back-to-back loans |
regular