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Meaning / Definition of
Topping-up Clause
Categories: Forex,
A stipulation in a back-to-back or two-currency loan which protects the lender from currency devaluations. By virtue of this clause, the borrower is obliged to make payments to the lender when the value of the currency declines. However, this can cause additional taxes on the lender since he has to declare the additional payments as income.
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