PARALLEL LOAN
Parallel Loan: translation
A type of foreign exchange loan agreement that was a precursor to currency swaps. A parallel loan involves two parent companies taking loans from their respective national financial institutions and then lending the resulting funds to the other company's subsidiary.For example, ABC, a Canadian company, would borrow Canadian dollars from a Canadian bank and XYZ, a French company, would borrow euros from a French bank. Then ABC would lend the Canadian funds to XYZ's Canadian subsidiary and XYZ would lend the euros to ABC's French subsidiary.
The first parallel loans were implemented in the 1970s in the United Kingdom in order to bypass taxes that were imposed to make foreign investments more expensive.
- parallel loan—Parallel loan translation A process whereby two companies in different countries borrow each others currency for a specific period of time and repay the others currency a...Financial and business terms
- parallel loan—parallel loan translation A process whereby two companies in different countries borrow each others currency for a specific period of time and repay the others currency a...Financial and business terms
- parallel loan—банк. фин. backtoback loan параллельный кредит кредит в котором участвуют две материнские компании и их дочерние предприятия в разных странах всего четыре стороны кред...Англо-русский экономический словарь
- parallel loan—кредит наданий в однй валют а погашуваний в ншй...Англо-украинский бизнес словарь
- parallel loan—кредит наданий в однй валют а погашуваний в ншй...Англо-український бізнес-словник