Eurocredit


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Related to Eurocredit: Eurocredit market, Foreign bond

Eurocredit

Credit extended in a currency outside the jurisdiction of the central bank of the bank extending the credit. For example, an American bank may make a loan denominated in Japanese yen. The term has nothing to do with the euro; and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the local central bank, e.g. "euroruble." Eurocredit loans are usually large and long-term. Banks participating in the eurocredit market generally also participate in the eurocurrency market.
References in periodicals archive ?
PLAUT, THE SHORT-TERM EUROCREDIT MARKET 4-5 (New York University Salomon Center Monograph Series in Finance & Economics ed.
He began his career with Caisse des Depots et Consignations, where he was in charge of Foreign Exchange and Eurocredit operations.
However, it is in explaining new forms of financing, the Eurodollars, Eurobonds, and Eurocredits and the impetus that these new products gave to the London market, that Cassis excels.
Second, Eurocredits were based on floating interest rates (LIBOR plus a spread); thus at any point, the sovereign country could face a sharp rise in its interest repayment burden.