Structured loan

structured loan is a long-term loan structured around a short-term loan, in such a way as to defer principal repayments (and sometimes interest) on the long-term loan, until the short-term loan is repaid 1 .

These loans are considered toxic because the rates can vary considerably, usually in favor of the bank. In France, many local authorities are bogged down in this type of toxic borrowing 2 . This is notably the case of Saint-Étienneand Saint-Maur-des-Fossés .

Notes and references

  1. ↑ Glossary of Financial Terms  [ archive ]
  2. ↑ The expansion of 27 October 2010  [ archive ]

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