Eurocredit

AAA

DEFINITION of 'Eurocredit'

A loan whose denominated currency is not the lending bank's national currency. A eurocredit loan would be made by a U.S. bank to a lender requiring a denominated currency which differs from the bank's local currency (USD) for specific reasons, most likely some sort of business operations or trade requirements. Despite the inclusion of the word "euro," a eurocredit is not immediately derived from the euro.

INVESTOPEDIA EXPLAINS 'Eurocredit'

Eurocredit helps the flow of capital between countries and the financing of investments at home and abroad. These trades add liquidity to both currencies as the U.S. bank accounts for the incoming payments from the loans in U.S. dollar terms, and are often large and function in a long-term basis. A U.S. bank lending a corporation 10 million Russian rubles is an example of Eurocredit.

RELATED TERMS
  1. Credit

    1. A contractual agreement in which a borrower receives something ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Eurocurrency Market

    The money market in which Eurocurrency, currency held in banks ...
  5. Eurobond

    A bond issued in a currency other than the currency of the country ...
  6. Eurocurrency

    Currency deposited by national governments or corporations in ...
Related Articles
  1. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  2. An Introduction To Depositary Receipts
    Bonds & Fixed Income

    An Introduction To Depositary Receipts

  3. The Money Market
    Retirement

    The Money Market

  4. How Bitcoin Casinos Work
    Investing Basics

    How Bitcoin Casinos Work

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center