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International Finance

  International Finance   |   Terms
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  • February 24, 2023
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Back-To-Back Loan

A loan, similar in structure to a parallel loan, whereby multinational parent corporations operating in two different countries lend each other’s subsidiary (based in the same country of the other’s parent) an amount of money denominated in the local currency of the country where it is based. Furthermore, this loan is embedded with a right of offset which stipulates that if one counterparty defaults on a payment, the other has the right to stop corresponding payments of the same value.


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