Back-to-Back Credit

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Back-to-Back Credit

An agreement by a bank to guarantee payment by a seller made at the same time another bank guarantees performance by a buyer. Back-to-back credit is intended to reduce the risk of a transaction to a minimum. Back-to-back credit is also called countervailing credit or reciprocal credit. See also: Back-to-Back Letter of Credit.
References in periodicals archive ?
Subsection (A)(4) of this bill has a provision that no longer allows a credit to Louisiana taxpayers if a state does not offer a reciprocal credit.
Global Banking News-24 April 2009-Brazil, Argentina increase reciprocal credit limit(C)2009 ENPublishing - http://www.
Exemption or credit is generally not granted if the first state does not have a sales or use tax or does not itself allow a reciprocal credit.
Under the terms of the agreement, upon candidate request Prosoft and IBM will each provide full reciprocal credit to candidates who pass the other's exam.
Reuters has reported that the Unico group of European cooperative banks are to provide a reciprocal credit line.