--%>

Parallel and back-to-back loan

Distinguish between the parallel loan and the back-to-back loan.

E

Expert

Verified

Parallel loan includes four parties.  One MNC borrows and then re-lends to another’s subsidiary and vice versa.  A back-to-back loan includes only two parties.  One MNC borrows and re-lends directly to another. 

   Related Questions in Financial Accounting

  • Q : Financial report Details of Assignment

    Details of Assignment : You are required to form a team (group) of 3 to 4 m embers. Let your lecturer know the names of your team members. Select a set o f financial statements for a group of companies and obtain approval from your le cturer for the group of companies that you have selected.

  • Q : Vernon’s product life-cycle theory of

    Discuss the Vernon’s product life-cycle theory of the FDI. Specify the strength and weakness of theory?

  • Q : Good international monetary system

    Explain criteria for the ‘good’ international monetary system.

  • Q : Asset Owned by an entity, something

      Owned by an entity, something that provides benefits and whose cost can be measured. The measure of the value of assets in dollar appears on the

  • Q : Wind turbine I have started to design a

    I have started to design a wind turbine but I am stuck now. I would like you to have a look to my design and tell me what do I have to do.

  • Q : Effects of foreigners portfolio

    Since early 1980s, foreign portfolio investors has purchased a considerable portion of the U.S. treasury bond issues.  Explain some short-term and long-term effects of the foreigners’ portfolio investment over the U.S. balance of payments.

  • Q : Sharpe performance measure concept

    Explain the Sharpe performance measure concept.

  • Q : Security returns Security returns are

    Security returns are found to be less correlated across various countries rather than within the country. Explain Why?

  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

  • Q : Essential condition for

    Specify the essential condition for the fixed-for-floating interest rate swap to be possible?