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Back to back loans is a product born to solve the parallel loans of credit risk, It is the parent company of the two countries with each other direct loans, loan currency different single currency equal to the loan maturity surname links, each payment of interest, until their money to repay the original loan.

despite Back to back have the two loans, but only sign one loan agreement, the agreement clearly say that if one party defaults, the other party have the right to offset obligations. This greatly reduces the loan in the credit risk that may arise.

Similarly, back to back loans invole the issue of cross-border lending,so there is the issue of exchange controls,and parallel loans and credit is a kind of back to back loans,it reflects the relationship between debt and debt,also it will affect the structure of assets and liabilities of the enterprise,currently the two ways to avoid foreign exchange controls do not commonly used.