Multinational netting

Multinational netting

Elimination of offsetting cash flows within a multinational corporation's books.

Multinational Netting

The practice of eliminating offsetting cash flows from the balance sheet of a multinational corporation. For example, if a multinational corporation owes a bank $50 million and the bank owes the corporation $30 million in a separate transaction, the corporation may use multinational netting and record that it owes the bank only $20 million.