Debt swap

(redirected from debt swaps)
Also found in: Dictionary.

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.
References in periodicals archive ?
1987, "Stock for Debt Swaps," Financial Management (Autumn), 5-17.
Although it is not a panacea for the country's debt burden - estimated at over five billion dollars - the debt swaps have provided Madagascar with the resources with which to fund conservation programmes.