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Definition of

parallel loan


arrangement for two matching loans in different currencies an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specific future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.

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Definitions of ’parallel loan’ and meaning of ’parallel loan’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’parallel loan’ and other financial terms with our online QFINANCE Financial Dictionary.

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