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[31 Oct 2010 | 2 Comments | 4,132 views]
Interest free loan with no fixed repayment terms

Scenario:
In June 2006, XYZ Co. obtained an interest free loan amounting to USD 50 million from a third party with no fixed repayment terms. Under the terms of the loan agreement, the loan is to be repaid in annual installments, each equal to 60% of X…