Blocked funds

Blocked funds

Cash flows generated by a foreign project that cannot be immediately repatriated to the parent firm because of capital flow restrictions imposed by the host government.

Blocked Funds

Money generated by a company's foreign operations that cannot be moved from one country to another because of one or more regulations in the country in which the money was generated. For example, a government may place a limit on the maximum amount that may be moved out of a country over a given period of time. Having an excessive amount in blocked funds may harm a company's cash flow. See also: Political risk.