Refinancing – within the sphere of Banking Law the refinancing is a re-structure of remaining debt. This procedure applies in situations where the debtor is not able to cover their monthly installments, so either the term of the debt is prolonged only, or new loan is taken (from the same creditor of from a third party) to cover the remaining main debt. Via refinancing the debtor raises funds to clear the main debt, and on the other hand the creditor gets bigger interest via obliging the debtor for longer term. In practice, I still owe you 10 000 dollars which I have to repay till the end of the month. You agree that I will take from your brother 10 000 dollars which to use to clear the debt to you, and which sum to refund to him for agreed (longer) period.