back-to-back loans

A form of back-to-back loan — 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

noun
  1. pluralplural of back-to-back loan
Cite this entry
APA

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

MLA

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

Chicago

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

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