Meaning of “interest capitalization” in the English Dictionary

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"interest capitalization" in Business English

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interest capitalizationnoun [ U ]


the addition of the interest that has not yet been paid on a loan to the original amount of the loan:

The increase in interest expense resulted from interest capitalization of €1.5 million in relation to new machinery.

(Definition of “interest capitalization” from the Cambridge Business English Dictionary © Cambridge University Press)