Definition of sinking fund in English:

sinking fund

Line breaks: sink|ing fund

noun

  • A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.
    More example sentences
    • In each period a certain percentage of gross output is set aside into a sinking fund for depreciation and replacement; this percentage is based on the length of life of machines, which is assumed to be given and constant.
    • The banks which finance the investors may well require that the promoters/operators put aside a fixed amount into a sinking fund over the period of ownership by the investors.
    • He also proposed a sinking fund, financed by post office revenues, that would be pledged to pay off the debt.

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