Term:
Sinking fund
Definition:
Payments made by the borrower on a regular basis to a special account to set aside the necessary funds for the redemption of its long-term debt. In the Euromarket, borrowers can meet their requirements through purchases in the open market or through drawings by lot.
Domain:
Finance
Source:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments
