Definition of floating debt in English:

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floating debt

Pronunciation: /ˈflōdiNG det/

noun

A debt that is repayable in the short term. Compare with funded debt.
Example sentences
  • His Missouri Pacific Railroad effectively controlled the Texas & Pacific by means of an operating contract and the provision of floating debt.
  • The worst US government budget deficits took place in the early 1990s, when 20 percent of the budget was taken care of by floating debt.
  • The advantage of floating debt is that there is a chance to benefit from reductions in interest rates.
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