adjustable debt
[/əˈdʒʌstəbəl dɛt/]
nounpl: adjustable debts
dívida ajustável
1. A debt obligation where the interest rate or payment terms can be modified or recalibrated based on predetermined conditions, economic indicators, or mutual agreement between creditor and debtor
The company negotiated an adjustable debt arrangement that allows interest rate modifications based on quarterly performance metrics.
A empresa negociou um arranjo de dívida ajustável que permite modificações na taxa de juros com base em métricas de desempenho trimestral.
2. In corporate finance, a debt instrument where terms such as maturity date, principal amount, or interest rate can be adjusted to reflect changes in market conditions or the debtor's financial situation
The adjustable debt helped the startup maintain financial flexibility during uncertain economic periods.
A dívida ajustável ajudou a startup a manter flexibilidade financeira durante períodos econômicos incertos.
Adjustable debt is a common financial instrument in both American and Brazilian markets, particularly in corporate financing and real estate transactions. In Brazil, this mechanism gained prominence during economic fluctuations and is frequently used by companies seeking financial flexibility. The concept reflects modern financial practices that allow borrowers and lenders to navigate economic uncertainty more effectively.
Look up more words on Fala2Me
The free English-Portuguese dictionary with real Brazilian accents, NYC slang, conjugator and more
Open Fala2Me →