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Topical Terminology > Back-to-back Loan



2 Definitions

Back-to-back Loan

For Back-to-back Loan we have terms and definitions in 2 topics. The topics are Business and Finance.



Back-to-back Loan (Business)

An arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.


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Back-to-back Loan (Finance)

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.


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