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 ?
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.
He began his career with Caisse des Depots et Consignations as manager of foreign currency treasury transactions and eurocredits.
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.
residents and on net principal repayments of interbank Eurocredits by other foreign banks to finance their drawings from foreign offices.