Soft Loan

Summary of Soft Loan

A loan repayable by a foreign borrower in a Soft Currency (read this and related legal terms for further details). Such loans usually have been the product of long-term sales to countries without hard currency repayment resources. The practice of making such loans by industrial nations has largely given way to extended term repayments in hard currencies.

(Main Author: William J. Miller)

Soft Loan and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Soft Loan: A loan repayable by a foreign borrower in a soft currency. Soft loans usually result from long-term sales to countries without resources for repayment in hard currencies.

Soft Loan and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Soft Loan: Refers to interest-free loans granted to developing countries by the International Development Association (Sec. III).