back-to-back loan

noun

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.

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Meanings

nounback-to-back loan (plural back-to-back loans)

plural back-to-back loans

  1. 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.

Origin

From back-to-back + loan.

Full word history & related roots →

Translations

Finnish back-to-back -laina, rinnakkaislaina
  • back-to-back -lainaTranslations
  • rinnakkaislainaTranslations
German Gegendarlehen, Back-to-back-Darlehen
  • GegendarlehenTranslations
  • Back-to-back-DarlehenTranslations
Russian компенсацио́нный креди́т
  • компенсацио́нный креди́т (kompensaciónnyj kredít)Translations
Cite this entry
APA

back-to-back loan. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/back-to-back%20loan

MLA

“back-to-back loan.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/back-to-back%20loan. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “back-to-back loan,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/back-to-back%20loan.

Source: back-to-back loan on Wiktionary, CC BY-SA 4.0.