Debit Loan receivable from Affiliate
Credit Loan Payable from Affiliate
Eliminate Loan receivable against Loan payable against each other and any interest recorded while loan is in effect. Think of it as in consolidation no loan exists so remove any effects associated with the issuance of the loan.
Have the foreign entity use the same translation rate method on the loan as they do for their common stock, which also came from the parent. That is, have them translate not at current fx rate but at historical rate so the resulting translated payable will always match the parent receivable.