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Debt swap

   Also found in: Wikipedia 0.11 sec.
Debt swap
A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap.

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Debt relief and debt swap schemes can also be employed to encourage poor countries to do this.
Following the closing of the loan, the Company intends to enter into debt swap arrangements, which will fix the rate for up to three years.
EDT, Fitch Ratings will host a teleconference call to discuss the Uruguayan debt swap transacted last week and a criteria report Fitch released last week titled, 'Sovereign Distressed Debt Exchanges.
 
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