1. Operations whereby a loan is made in one currency in one country against a loan in another currency in another country (e.g., a U.S. dollar loan in the U.S. against a pounds sterling loan in the U.K.).
2. A credit opened by a bank on the strength of another credit (e.g., if a British merchant buys cotton in Egypt and sells it to a Belgian who establishes a credit for payment to the U.K. firm, then the firm may be able to use this as a security for
opening a credit to finance payment to the Egyptian.)
3. A scheme whereby a bank brings together a borrower and a lender so that they agree on a loan contract.
4. Refers to a variable rate loan made by IFC to a borrower, for which the funds are borrowed from the IBRD. Also called matched funding.