Back-to-back financing

Back-to-back financing

An intercompany loan channeled through a bank.

Back-to-Back Financing

1. In foreign exchange, two equivalent loans issued by two companies in two countries to offset each other's currency risk. For example, suppose an American company wishes to open a European office and a European company wants to open an American office. The American company may lend the European company $1 million for start-up costs. This loan is calculated in dollars. At the same time, the European company loans the American company the equivalent of $1 million in euros to help with their start-up costs. Because both loans are made in the local currencies, neither company needs to worry about whether the exchange rate will favor them as the loans are paid back. This practice has become less common as currency swaps have become more common.

2. In international trade, see back-to-back letters of credit.
References in classic literature ?
These men, whom she had found so relapsed into barbarism that they had forgotten the most ordinary forms of civilization; these men, even in whose extravagant admiration there was a certain loss of self-respect, that as a woman she would never forgive; these men, who seemed to belong to another race--impossible
Our system is educating them in barbarism and brutality.
How to make a civilization that is organized and quick, instead of a barbarism that was chaotic and slow--that is the universal human problem, not wholly solved to-day.
It ought to be considered as a great point gained in favor of humanity, that a period of twenty years may terminate forever, within these States, a traffic which has so long and so loudly upbraided the barbarism of modern policy; that within that period, it will receive a considerable discouragement from the federal government, and may be totally abolished, by a concurrence of the few States which continue the unnatural traffic, in the prohibitory example which has been given by so great a majority of the Union.
Among our still more modern and dashing young gentlemen -- who are extremely averse to superfluous effort and supremely indifferent to the purity of their native language -- the formula is still further curtailed by the use of "to feel" in a technical sense, meaning, "to recommend-for-the-purposes-of-feeling-and-being-felt"; and at this moment the "slang" of polite or fast society in the upper classes sanctions such a barbarism as "Mr.
Ah, baron, baron," said Albert, "you are not listening -- what barbarism in a melomaniac like you
And authority, by bribing people to conform, produces a very gross kind of over-fed barbarism amongst us.
It was too horrible a confusion of guilt, too gross a complication of evil, for human nature, not in a state of utter barbarism, to be capable of
Monsters such as he is belong to an earlier and more rudimentary stage of barbarism.
Despite the touches of barbarism in his contours, there was a singular force in the gentleman's face, and in his bold rolling eye.
With houses looking on, on every side, save where a reeking little tunnel of a court gives access to the iron gate--with every villainy of life in action close on death, and every poisonous element of death in action close on life--here they lower our dear brother down a foot or two, here sow him in corruption, to be raised in corruption: an avenging ghost at many a sick-bedside, a shameful testimony to future ages how civilization and barbarism walked this boastful island together.
We have yet had no genius in America, with tyrannous eye, which knew the value of our incomparable materials, and saw, in the barbarism and materialism of the times, another carnival of the same gods whose picture he so much admires in Homer; then in the Middle Age; then in Calvinism.