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Back to back loan

• An example of a back-to-back loan would be IBM agreeing to lend dollars to British Petroleum in exchange for the latter lending pounds to IBM. Such agreements are struck only when exchange controls in one or more countries prevent normal capital flows.

• 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.

 
 

Follow this link for all the terms related to loan.

 
 Embedded terms in definition
 Borrow
Capital
Currency
Exchange controls
Exchange
Lending
Lend
Maturity
Time
 
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