Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of parallel loan

Definition of

parallel loan

Finance

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.

Related definitions of "parallel loan"

parallel loan - Related Articles
  • How Taxation Impacts on Liquidity Management

    Best Practice

    In the UK a new debt cap takes effect for accounting periods beginning on or after 1 January 2010, running in parallel with the arm's length principle. The debt cap applies to limit the tax deduction for finance expense payable by UK group companies by reference to the consolidated worldwide gross
    By Martin O’Donovan

  • Internal Audit and Partnering with Senior Management

    Best Practice

    On reviewing the audit coverage of the retail loan portfolio of a commercial bank, an auditor discovered that there was broad coverage of personal loans which averaged about US$30,000. The auditors were doing a very thorough audit of the personal loans in line with the content of the internal audit plan, their sampling techniques were effective, their work papers were well-constructed, and the resultant audit report was well written.
    By Bruce Turner

  • Botswana

    QFINANCE Country Profiles

    Commenting on Botswana’s economy, the World Bank calls the country “an example of prudent economic policy and growth,” with the one exception being its record on HIV infection. It points out that the country’s record of three decades of rapid economic growth has few parallels in modern economic

  • Insurance—Bruised, Not Crushed

    Best Practice

    However, it is important to realize that AIG was a very unusual insurance company, and a leader in the CDS market, which went sour when the liquidity crunch set in. AIG’s business model and profile of operations have no real parallel in the rest of the sector.
    By Robert P. Hartwig

More

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.

Back to top

Related Blog Posts

More related Blog results