Credit Tranche


Credit Tranche
A system used by the International Monetary Fund (IMF) to govern its lending activities to member countries. When a member nation applies for a loan to help with balance of payment difficulties, the IMF will disperse the loan in a series of credit tranches. Tranches are a portion of the loan that is released upon the member country fulfilling conditions or requirements set forth by the IMF.

An International Monetary Fund loan usually lasts between 18 months and three years. At the start of the loan, the borrowing nation must demonstrate that reasonable efforts have been taken to overcome its financial difficulties. If this requirement is met, the country will receive the first credit tranche of the loan, usually 25% of its total value. The later series of credit tranches will have various conditions, each of which the borrower must satisfy before receiving the next portion of funding.


Investment dictionary. . 2012.

Look at other dictionaries:

  • tranche — / trä sh/ n [French, literally, slice, from Old French, from trenchier trancher to cut]: a division or portion of a pool or whole: as a: an issue of bonds derived from a pooling of like obligations that is differentiated from other issues esp. by …   Law dictionary

  • tranche — [ trɑ̃ʃ ] n. f. • 1213; de trancher ♦ Ce qui est coupé, tranché. A ♦ Sens propre 1 ♦ Morceau assez mince, coupé sur toute la largeur d une chose comestible. Tranche de pain. ⇒ tartine, toast. Tranche de viande, de bœuf (⇒ bifteck) , de veau (⇒… …   Encyclopédie Universelle

  • tranché — tranche [ trɑ̃ʃ ] n. f. • 1213; de trancher ♦ Ce qui est coupé, tranché. A ♦ Sens propre 1 ♦ Morceau assez mince, coupé sur toute la largeur d une chose comestible. Tranche de pain. ⇒ tartine, toast. Tranche de viande, de bœuf (⇒ bifteck) , de… …   Encyclopédie Universelle

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  • Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… …   Wikipedia

  • Crédit d'impôt recherche — Le crédit d impôt recherche (CIR) est, dans le système fiscal national français, un dispositif de réduction d impôt et de subvention visant à soutenir les investissements des entreprises (dont celles non soumises à l impôt comme les JEI)… …   Wikipédia en Français

  • Tranche de crédit — En financement structuré, un crédit peut être divisé en plusieurs tranches de crédit ayant chacune un prêteur ou garant distinct. En anglais, le mot français tranche est employé pour désigner une tranche de crédit. Collateralised debt obligation… …   Wikipédia en Français


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