A

Above par:
A share or a bond whose market value is higher than its nominal value or face value. For example, if long-term interest
rates decrease after the issue of the bond, the bond's price will increase above par. Opposite: Below par
Français: Au dessus du pair
Español: Por encima de la par, por encima de su valor nominal, por encima de la paridad

Acceptance:
A time draft (or bill of Exchange ) on which the drawee has written the word "accepted" over his signature, thereby
becoming unconditionally obliged to pay at maturity. The draft must first be presented for acceptance, by which the
drawee becomes the "acceptor", and then for payment.
(1) Bank(er's) Acceptance :a draft of which a bank is both drawee and acceptor; i.e. the bank gives its guarantee to
make the payment should the buyer default.
(2) Trade acceptance: a draft, usually issued from the sales of merchandise, whose drawee and acceptor is an
individual or a business entity.
Français: Acceptation
Español: Aceptación

Acceptance credit:
Short-term loan by which the bank allows the customer to draw bills on it up to a certain amount (line of credit). The
bills are then accepted and usually also discounted by the bank. Most frequently used in international trade.
Français: Crédit d’acceptation
Español: Crédito de aceptación

Acceptance price:
In the underwriting business, the price paid by the banks to the issuers for underwriting a new securities' issue. The
acceptance price is lower than the issue price to the general public, the difference being the banks' gross profit margin
or commission.
Français: Prix d’acceptation
Español: Precio de aceptación

Account party:
The party which addresses the bank for the issue of a letter of credit , e.g. the account party can be an importer, a
buyer, a construction contractor or a supplier bidding on a contract.
Français: Partie comptable
Español: Parte solicitante

Accounts payable:
Money due to suppliers. Also called payables and trade payables.
Français: Dettes passives
Español: Cuentas a pagar

Accounts receivable:
Money due from customers. Also called receivables and trade receivables.
Français: Dettes actives
Español: Cuentas a cobrar, activo corriente, activo exigible, efectos a cobrar, valores exigibles

Accrual accounting:
An accounting method where revenues are recognized when earned and expenses when incurred, regardless of the
actual timing of the cash receipts and expenditures. Compare with cash accounting.
Français: Comptabilité cumulative
Español: Contabilidad de valores devengados

Accrued interest:
(1) Interest earned but not collected.
(2) Interest earned, but still unpaid, since the latest payment date.
(3) Interest due from the date of issue or the last coupon date on an interest-bearing security, or from the last date of
payment on a loan.
Français: Intérêts courus
Español: Interés acumulado, interés devengado, interés vencido

Accrued liabilities:
Accounting items entered on the liabilities side of the balance sheet which relate to previous operations; such as
income received during the past financial year but which relates to the new fiscal year, or expenses incurred during the
past year but not payable until the following year.
Français: Passifs transitoires
Español: Pasivo acumulado

Acid test / Quick ratio:

A liquidity ratios measuring a company's ability to pay immediate liabilities. It is expressed as: current assets less
inventories, divided by current liabilities. Compare with Quick ratio.
Français: Ratio de liquidité
Español: Prueba ácida
Active income:
Income resulting from the active conduct of trade or business.
Français: Revenu actif
Español: Ingreso activo

Actual(s):
The physical commodity or security underlying a futures contract. It may also be designated "cash" or "physicals".
Français: Physique(s)
Español: Actual(s)

ADB:
See African Development Bank, Asian Development Bank.
Français: Banque Africaine de Développement, Banque asiatique de développement
Español: Banco Africano de Desarrollo, Banco Asiático de Desarrollo

Ad Valorem Duty (According to value):

Any charge, tax, or duty (tariff) calculated and applied as a percentage of the value (price) of the item. The higher the
value of an item, the higher the ad valorem duty. See duty.
Français: Droits Ad Valorem (en fonction de la valeur)
Español: Derecho ad valorem

Addendum:
A supplement or appendix attached to a document (such as a bill of exchange ) which can be used for endorsement.
Français: Addendum
Español: Suplemento

ADR:
Abbreviation for American Depository Receipts
Français: Quittances/Certificats de Dépôts Américains
Español: Recibo americano de depósito

Advance:
A loan, usually short-term (i.e. one to three years), taking the form of an overdraft to a company or individual.
Français: Avance
Español: Préstamo, anticipo, adelanto
Advance against documents (A/D):
A loan secured by the documents covering the shipments, which remain in control of the creditor.
Français: Avance contre documents
Español: Préstamo contra documentos, adelanto sobre documentos

Advance import deposits:

A foreign exchange control technique whereby importers are required to deposit a percentage of the value of a product
with the designated authorities for a specified period of time.
Français: Avances relatives aux dépôts d’importations
Español: Depósitos previos a la importación

Advanced Payment Bond/Guarantee:

(1) A bond provided by a supplier to a buyer to assure him that advance payments made to the supplier will be
returned if the contractual obligations are not fulfilled. The bond is issued up to the amount of the advance payments
specified in the contract. The value of the bond normally decreases as the supplier fulfils the obligations for which the
advance payments were made. Such bond may be either conditional or unconditional.
(2) An arrangement whereby a company employing a contractor makes funds available to him to purchase equipment
and to cover the organizational expenses involved in getting the construction under way.
Français: Obligation, Garantie de paiement anticipé
Español: Bono de pago anticipado, garantía de pago anticipado

Advances:
See Receivables.
Français: Avances
Español: Advances

Advised letter of credit:

A commercial letter of credit whose authenticity has been verified by a bank, usually located in the beneficiary's
country. The bank then advises the beneficiary of the authenticity of the letter of credit, without however undertaking
any payment obligation.
Français: Lettre de crédit notifiée
Español: Carta de crédito notificada

Advising bank:
Also known as the notifying bank. This is the bank operating in the exporter's country which handles letter of credit on
behalf of the foreign bank, by notifying the exporter that the credit has been opened in his favour and informing him of
the terms and conditions of the letter of credit. It does not necessarily have responsibility for payment.
Français: Banque notificatrice
Español: Banco notificador

Advisory Capacity:
A term designating the fact that the powers of a shipper's agent or representative abroad are limited, and that he is not
authorized to take decisions or make adjustments without previously referring to his principals. Compare with without
reserve.
Français: Capacité notificatrice
Español: Calidad de asesor

After date:
A phrase indicating that payments on a draft or other negotiable instrument are due on a specific date after the
presentation of the draft to the drawee. Compare with after sight, at sight.
Français: Après la date
Español: Plazo fecha

After sight:
This expression is written on a draft or other negotiable instrument, meaning that it becomes payable on a certain date
after having been presented for acceptance (e.g. 90 days). The period starts the date the bill is signed and accepted
by the drawee. In order to let the holder of the bill know when the bill becomes payable, the drawee must add the date
of his acceptance.
Français: Après présentation
Español: Plazo vista

After-tax cash flow:

The total cash generated by an investment annually. This is defined as profit after-tax plus depreciation, or operating
income after tax plus the tax rate times depreciation.
Français: Flux de trésorerie après impôts
Español: Flujo de caja después de impuestos

After-tax real rate of return:

This is defined as the after-tax rate of return on an investment minus the inflation rate.
Français: Taux de rentabilité réel après impôts
Español: Tasa de rendimiento real después de impuestos, tasa de rentabilidad real después de impuestos

African Development Bank:

Established in 1963, with its headquarters in Abidjan, Côte d'Ivoire. The ADB provides financing through direct loans to
African member states to cover the foreign exchange costs incurred in bank-approved development projects in these
countries. Fifty-one African countries are members. The ADB is financed by member countries of the OECD.
Français: Banque Africaine de Développement
Español: Banco Africano de Desarrollo

African Development Foundation (ADF):

An independent, non-profit government corporation established to provide financial assistance to grass-roots
organizations in Africa. The ADF became operational in 1984.
Français: Fondation Africaine de Développement
Español: Fundación africana para el desarrollo, FAD

African Development Fund (ADF):

A fund managed by the ADB.
Français: Fonds Africain de Développement
Español: Fondo africano para el desarrollo

Agency fee (management fee):

An annual fee payable by the borrower, usually to cover the costs incurred by the lender in administering the loan.
Français: Honoraires, commission d’agence (honoraires, commission de direction)
Español: Comisión de agente, comisión de administración, comisión de gestión

Agency for International Development (AID):

Created in 1961 to administer foreign economic assistance programmes of the US government. AID has field missions
and representatives in approximately 70 developing countries in Africa, Latin America, the Caribbean and the Near
East.
Français: Agence pour le Développement International
Español: Agencia para el Desarrollo Internacional

Agent:
A legally independent person, authorized by another person (the principal) to act on his behalf as an intermediary or to
conclude business transactions. The agent usually receives a fee or a commission (often a percentage of the sale
price) for the services rendered. In a syndicated loan, the agent is the bank which manages the loan on behalf of the
participating banks.
Français: Agent
Español: Agente, representante, mandatario

Agent distributor service (ADS):

A fee-based service providing U.S. exporters with a customized overseas search for interested and qualified foreign
representatives (such as foreign import agents and distributors).
Français: Agent distributeur de services
Español: Servicio de agente distribuidor

Agio
A security sells at agio when its market value is higher than its nominal or par value. In foreign exchange operations
this is the premium paid to exchange one currency for another. Opposite: Disagio.
Français: Agio, Prime
Español: Agio
Agreed Minute:
This embodies the terms agreed upon in a Paris Club rescheduling meeting. It forms the basis for bilateral discussions
between individual creditor governments (including export credit agencies) and debtor countries on agreements for
implementation of the rescheduling. The Minute normally specifies the coverage of debt-service payments to be
consolidated, the cut-off date, the consolidation period, the proportion to be rescheduled and the deferred debt.
Français: Procès verbal convenu
Español: Acta aprobada

AIBD:
The Association of International Bond Dealers, setting market trading rules for the secondary market of Eurobonds.
Français: AIBD
Español: AIBD

Air waybill:
A bill of lading used for the transportation of air freight, describing conditions, liability, shipping instructions, nature of
the commodity and applicable transportation charges. It is a non-negotiable instrument of air transport acting as a
receipt for the shipper, and indicating that the carrier has accepted the goods listed therein and is thereby committed
to carry the consignment to the airport of destination, according to the specified conditions. Compare Inland Bill of
Lading, Through bill of lading.
Français: Lettre de voiture aérienne
Español: Carta de porte aéreo

All-in cost:
Total costs, whether foreseeable or not.
Français: Tout-inclu dans le coût
Español: Costo todo incluido

All-in rate:
The interest rate on a loan which includes the cost of Compensating balances, Commitment fees and any other
charges.
Français: Tout-inclu dans le taux
Español: Tasa todo incluido

Allonge:
A slip of paper attached to a bill of Exchange , acceptance or notes, providing space for additional endorsement when
the back of the bill is already filled with names.
Français: Allonge
Español: Allonge

All Risks Coverage:

A clause used in marine insurance, providing the shipment with the broadest kind of standard coverage. It excludes,
however, damage to the shipment caused by war, strikes and riots. Compare with the Free of Particular Average and
With Average clauses.
Français: Couverture de tous les risques
Español: Cobertura contra todo riesgo

Alongside:
A term referring to the side of a ship. Goods to be delivered alongside are to be placed on the dock or within reach of
the transport ship's tackle so that they can be loaded on board. Goods are delivered alongside at the port of
embarkation, excluding loading fees.
Français: Le long
Español: Al costado

Alpha:
A Yield indicator based on the risk of a security or a portfolio in relation to the market risk. A positive Alpha indicates
the extra yield of the security or portfolio awarded to the investor for having taken a risk, rather than simply accepting
the average market return. Thus, an alpha of 0.5 means that the security or portfolio has outperformed the estimated
market-based return by 0.5%. See also Beta.
Français: Alpha
Español: Alfa

American Depository Receipts (ADRs):

Domestically traded securities representing claims of foreign stocks.
Français: Certificats de dépôt américains
Español: Recibo americano de depósito

American option:
An option which can be exercised at any time between the date of purchase and its expiry date. Compare with a
European Option.
Français: Option américaine
Español: Opción estadounidense

Amortization:
(1) The gradual reduction of a debt, through regular repayments of principal instalments and payment of current
interest over an agreed period of time, so as to liquidate the debt.
(2) In accounting, a term indicating the systematic writing off of an account or asset over its estimated life. See
Depreciation.
Français: Amortissement
Español: Amortización

Andean Group:
A group of Latin American countries formed in 1969 to promote regional economic integration among medium-sized
countries. Its member states include Bolivia, Colombia, Ecuador, Peru and Venezuela.
Français: Groupe andéen
Español: Grupo Andino

Annuity:
A stream of annual cash flows for a specified period of time. Opposite: Perpetuity.
Français: Annuité
Español: Renta anual, anualidad

Antidumping:
A set of laws and practices intended to counteract dumping practices.
Français: Antidumping
Español: Antidumping

A/P (Authority to pay):

An authorization, usually by a bank to a seller, for the purchase, with or without recourse, of draft(s), document(s)
and/or goods up to a designated amount.
Français: Autorisation à payer
Español: Autoridad para pagar

Application for letter of credit:

A written request by an applicant (an importer or purchaser) to his bank to open a letter of credit. The notification of the
opening of the letter of credit is usually done via a correspondent bank.
Français: Demande de lettre de crédit
Español: Solicitud de carta de crédito

Arbitrage:
The purchase of financial instruments (e.g. foreign exchange or securities) or commodities on one market with the
intention of selling them simultaneously on another market to take advantage of the price differential between the two
markets. The arbitrageur (the person carrying on the business of arbitrage) may earn a profit by exploiting the
differences in the rates of exchange or the prices of securities or commodities involved. Arbitrage is attractive only if
the price difference is large enough to cover the costs incurred (such as the costs of transporting the goods from one
market to the other).
Français: Arbitrage
Español: Arbitraje

Arrangement on Guidelines for Officially Supported Export Credits:

See Consensus.
Français: Dispositions directrices pour les Crédits à l’export officiellement soutenus
Español: Arrangement on Guidelines for Officially Supported Export Credits
Arrangement Fee:
Fee charged by a commercial bank which assists in arranging complex forms of financing, including export credit
insurance. Sometimes called a Management Fee.
Français: Honoraire d’arrangement
Español: Comisión de acuerdo

Arrears:
Generally speaking, debt-service payments not made by the due date. In the specific field of export credits, arrears are
overdue payments by borrowers, which have not yet resulted in claims against the export credit agencies.
Français: Arriérés
Español: Mora, atrasos

ASEAN:
Association of South-East Asian Nations.
Français: Association des Nations du sud-est asiatique
Español: Asociación de Naciones del Sudeste Asiático

Asian Development Bank (ADB):

Established in 1966 to foster economic growth and co-operation in Asia and to help accelerate the economic
development of members. The ADB headquarters are in the Philippines.
Français: Banque Asiatique de développement
Español: Banco Asiático de Desarrollo

Asian Pacific Economic Co-operation (APEC):

The Asian Pacific Co-operation was initiated by Australia at the Canberra Conference (Australia) of 1989. Its members
are: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand (members of the Association of South-East
Asian Nations countries), plus Australia, Canada, Chile, China, Hong Kong, Japan, New-Zealand, Papua-New-Guinea,
South Korea, Taiwan and the United States.
Français: Coopération économique de l’Asie du Pacifique
Español: Cooperación Económica Asia-Pacífico (CEAP)

Asked/ask price:
The price at which securities (including foreign exchange or foreign bank notes) are offered for sale. Opposite: Bid.
Français: Cours vendeur
Español: Precio de vendedor, precio de oferta, precio nominal

Asset-backed security:
A security issued by a financial institution and backed by an asset (e.g. a commodity).
Français: Titre garanti par des actifs
Español: Título con activos en garantía

Asset/equity ratio:
The ratio of total assets to stockholder’s equity.
Français: Ratio actifs sur fonds propres
Español: Relación entre activos y beneficios

Asset turnover ratio:

A measure of asset efficiency, defined as net sales divided by total assets.
Français: Ratio actifs / Chiffre d'affaires
Español: Razón de rotación de activos

Assets:
A term indicating everything a company owns which has a monetary value listed on the balance sheet (cash funds,
credit balances, supplies, equipment and facilities, etc.). Assets can be financial assets (such as bills), fixed assets
(equipment) and intangible assets (goodwill, patent). Opposite: liabilities.
Français: Actifs
Español: Activos

Assignee:
The acquirer of a title, interest or ownership transferred by an assignor. See Assignment.
Français: Cessionnaire
Español: Cesionario

Assignment:
The transfer of the legal right, interest or ownership (title) from a creditor (assignor) to a new creditor (assignee). A
distinction is made between a single assignment (where only a specific claim is assigned) and a blanket assignment
where all receivables are assigned. In the case of an option, an assignment is made when the option writer (seller)
receives an exercise notice obliging him to sell (in the case of a call) or to buy (in the case of a put) the underlying
security at the specified strike price.
Français: Cession
Español: Cesión, traspaso, transferencia

Assignment credit:
A credit granted against the fiduciary assignment of one or several receivables to a bank. The accounts receivable act
as a security for lending. See Discount credit.
Français: Crédit contre cession
Español: Crédito cedido
Assignor:
The person who transfers the title, interest or ownership to a third party. See Assignment.
Français: Cédant
Español: Cedente

Association of International Bond Dealers:

See AIBD.
Français: Association internationale des courtiers en obligations
Español: Asociación de Agentes Internacionales de Bolsa

Association of South-East Asian Nations (ASEAN):

Established in 1967 to promote political, economic and social co-operation among its six member countries: Indonesia,
Malaysia, Philippines, Singapore, Thailand and Brunei. Laos, Papua-New-Guinea and Vietnam are observers,
whereas South Korea has special status.
Français: Association des Nations du sud-est asiatique
Español: Asociación de Naciones del Sudeste Asiático

At best:
A buying or selling order by a customer to a broker, to buy or sell a certain security at the best currently available price.
In the case of a buying order it is therefore "at the lowest possible price", and "at the highest possible price" in the case
of selling order. The buyer or seller does not have to specify any maximum or minimum price for the execution of the
order by the broker.
Français: Au mieux
Español: Por lo mejor

At call:
Money deposited by a bank or at a bank, without any fixed maturity date. The money may be withdrawn at any time
when the depositor "calls" for it.
Français: Sur demande
Español: A la vista

At market:
See At best.
Français: Au prix du marché
Español: At market

At par:
A term meaning the "same value", implying that the price of the security is equal to its face value. Securities are issued
at par, par price, par rate. Compare with above par and below par.
Français: Au pair
Español: At par
At sight:
A term indicating that payment on a draft or other negotiable instrument is due upon presentation or demand.
Compare with After Date, After Sight.
Français: A vue
Español: A la vista

At-the-money option:
An option with an exercise price equal to, or close to, the current market price of the underlying security.
Français: A l'option monétaire
Español: Opción a la par

Authority to pay:
See A/P.
Français: Autorité de paiement
Español: Autoridad para pagar

Authorized bank:
A bank allowed by a country’s public authorities to process the decentralized payment transfers.
Français: Banque autorisée
Español: Banco autorizado, banca delegada

Aval:
A form of guarantee, generally given by a commercial bank, on a negotiable instrument. An aval is usually an
unconditional guarantee of payment and is not affected by the terms of the underlying transaction. Avals are
recognized only in certain countries (mainly European), though usually not in countries with an Anglo-Saxon legal
base.
Français: Aval
Español: Aval

Average collection period:

The number of days required, on average, to collect accounts receivable.
Français: Période d’encaissement moyenne
Español: Período promedio de cobranza

Average due date:

The mean date of payment of several sums becoming payable at different dates (applies particularly to a bill of
exchange).
Français: Date d’échéance moyenne
Español: Fecha promedio de vencimiento

Average Life:
The sum of the amounts outstanding of the loan at the end of each year, throughout its entire life, divided by the total
principal sum borrowed. It gives the average life of the loan in years.
Français: Vie moyenne
Español: Vida media

Average payment period:

The number of days, on average, in which a firm pays off its accounts payable.
Français: Période de paiement moyenne
Español: Período medio de pago

Average rate of return (ARR):

The ratio of average net earnings to average investment.
Français: Taux moyen de rentabilité
Español: Tasa de rentabilidad media

Average term:
In relation to a bond issue, the maturity calculated on the date halfway between the earliest and the latest date
stipulated for repayment.
Français: Durée moyenne
Español: Plazo promedio
B
Back bond:
A Eurobond created by the exercise of a warrant. Also known as a virgin bond.
Français: Back bond
Español: Bono garantizado

Back-to-Back Letter of Credit:

A letter of credit issued for the account of a buyer of merchandise already holding a letter of credit in his favour. The
back-to-back L/C is issued in favour of the supplier of the merchandise to cover the shipment stipulated in the L/C
already held by the buyer. The terms of L/Cs, except for the amount and expiration date, are similar, and the same
documents presented under the "back to back" L/C are subsequently used against the L/C in favour of the buyer.
However, the buyer or beneficiary of the first credit, substitutes his draft and invoice for those presented by the
supplier.
Français: Lettre de crédit "Back-to-Back"
Español: Carta de crédito garantizada

Back to back loan:

A loan in which two companies in different countries borrow each other's currency for a specific time period, with
repayment of the other's currency at an agreed maturity. This technique allows companies to eliminate or reduce their
foreign exchange risks. Also known as a Parallel loan.
Français: Prêt "Back to back"
Español: Préstamo cruzado en divisas, crédito con garantía de otro crédito

Backwardation:
A term indicating that futures prices of a commodity are lower than spot prices. If a commodity moves into
backwardation the markets expect prices to fall. Opposite: Contango.
Français: Déport
Español: Mercado invertido

Bad debt:
A non-performing loan i.e. a loan which is not repaid. To absorb losses arising from bad debts over a period of time,
banks usually set aside provision out of their profits.
Français: Mauvaise dette, dette irrécouvrable
Español: Deuda incobrable, deuda morosa, crédito fallido

Balance:
An accounting term indicating the difference between the total of all credit items and that of all debit items.
Français: Solde
Español: Saldo, balance, balanza

Balance of payments:
A statement which summarises all economic transactions between a country and the rest of the world during a period
of time, usually a calendar year. The balance of payments is made up of the current account balance, reporting the
external trade in merchandise and services (including income on investments), and the capital account, reporting
direct and portfolio investments and capital flows in general.
Français: Balance des paiements
Español: Balanza de pagos

Balance of payments deficit:

A negative imbalance of some specific components within the balance of payments.
Français: Déficit de la balance des paiements
Español: Déficit de la balanza de pagos

Balance of payments surplus:

Opposite of Balance of payments deficit.
Français: Excédent de la balance des paiements
Español: Superávit de la balanza de pagos, excedente de la balanza de pagos

Balance of trade:
The monetary difference between a country's total imports and its exports. If exports exceed imports the country
experiences a favourable balance of trade. Also known as merchandise trade balance.
Français: Balance commerciale
Español: Balanza comercial

Balance of trade deficit/surplus:

When the value of a country's exports is lower/higher than that of its imports.
Français: Balance commerciale déficitaire/excédentaire
Español: Deficit/Superávit de la balanza comercial

Balance Sheet:
A complete double entry account statement of assets and liabilities drawn up by an enterprise on a specific date
(usually at the end of a fiscal year). Total liabilities always equal total assets. The asset side of the balance sheet
provides information on the use of the company's funds. The liabilities’ side details sources of external financing (i.e.
cash, money market loans and advances, etc) and the composition of the shareholders' equity. Compare with Profit
and loss statement.
Français: Bilan
Español: Balance de situación, balance general, balance

Balloon maturity:
See Sinking fund requirement.
Français: Balloon maturity
Español: Requisito de fondo de amortización

Balloon repayment:
A loan whose repayments are not spread evenly over its life. Interest payments are accumulated and are paid along
with the principal in one lump sum at the end of the loan period.
Français: Remboursement unique
Español: Reimbolso balloon

Bank(er's) Acceptance; Bank bill:

A draft or bill of exchange whose acceptor is a bank. When accepted for payment by a bank it becomes a banker's
acceptance and may be used by the drawer or payee as collateral, or may be sold and discounted. Such an
arrangement originates on the initiative of the importer, who instructs his local bank to provide for a commercial
acceptance credit to the bank of the exporter. The bank of the exporter then issues an acceptance credit, in effect
guaranteed by the foreign bank, to the exporter under which he may draw a time bill of exchange maturing in 60 or 90
days. Supported by the documents demonstrating the shipment, this bill of exchange is then accepted by the bank
which endorses it, thus signifying that it will pay the bill at maturity. The exporter may retain the bill until maturity or sell
it on the discount market. This technique is frequently utilized in the financing of foreign trade, making possible the
payment of cash to an exporter covering all or a part of the value of his shipment. When the amounts involved are
large and in support of commodity transactions the banker’s acceptance can be placed on the market and sold through
a syndicate of banks.
Français: Acceptation bancaire, effet bancaire
Español: Aceptación bancaria, letra bancaria

Bank commission:
A bank charge for special services (credit commission) or for risk coverage, added to the interest on loans extended to
its clients.
Français: Commission bancaire
Español: Comisión bancaria

Bank discount rate:

(1) The rate at which a bank discounts notes. A rate quoted on a discount basis understates bond equivalent yield.
This difference must be calculated when comparing the return on yields on a discount basis and equivalent coupon
securities.
(2) A technique of evaluating the yield of short-term non-interest-bearing money market securities to make them
comparable with equivalent coupon securities.
Français: Taux d'escompte bancaire
Español: Tasa de descuento bancario, tasa oficial de descuento

Bank draft:
An international transfer of funds through an instrument very similar to a cheque.
Français: Transfert bancaire
Español: Giro bancario

Bank for International Settlements (BIS):

An international bank based in Basel, Switzerland, serving as a forum for monetary co-operation between several
European central banks, the Bank of Japan and the U.S. Federal Reserve System.
Français: Banque des Règlements Internationaux (BRI)
Español: Banco de Pagos Internacionales, BPI

Bank guarantee:
A guarantee, issued by the bank of the foreign purchaser, to pay the seller/exporter up to an agreed percentage of the
value of the goods shipped in case of default by the purchaser. See also Letter of credit.
Français: Garantie bancaire
Español: Garantía bancaria, fianza bancaria, aval bancario

Bank-issued medium-term note:

A medium-term certificate of indebtedness, issued by a bank on demand, with maturities ranging between 2 to 8 years.
Français: Papier bancaire à moyen terme
Español: Pagaré a mediano-plazo emitido por el banco

Bank notes:
Promissory notes issued by the Central Bank, payable to the bearer on demand.
Français: Papiers bancaires
Español: Billete bancario

Bank release:
A negotiable time draft drawn on and accepted by a bank, which adds its credit and standing to that of the importer.
Français: Traite à terme
Español: Descargo bancario

Banker's Bank:
A bank established by consent by independent and unaffiliated banks as a clearing house for financial transactions.
Français: Banque des banquiers
Español: Banco de banqueros

Banker's draft:
This is an order from a buyer/importer to his bank to make a payment to the bank of the seller/exporter. The draft is
sent to the exporter who presents it to his bank for payment. It is regarded as cash and cannot be returned unpaid.
The exporter's bank in return presents it to the buyer's bank for reimbursement.
Français: Chèque bancaire
Español: Giro bancario, letra bancaria

Bank for International Settlements:

See BIS
Français: Banque pour les Réglements Internationaux
Español: Banco de Pagos Internacionales, BPI

Barter:
See Countertrade.
Français: Troc
Español: Trueque

Base currency:
The currency against whose value an exchange rate quote is made between two currencies. For example, if the
French Franc is trading at 4.85 French Francs per Dollar, the Dollar would be the base currency and the French Franc
the quoted currency.
Français: Monnaie de base
Español: Divisa de referencia

Base lease term:

The underlying term of the lease used by the lessor in computing interest payments and regarded by the lessee as the
minimum time period during which he will have the use and custody of the equipment.
Français: Délai de base du bail
Español: Período de arrendamiento de base

Basic Balance:
In a balance of payments, the net balance of the combined current account and capital account.
Français: Basic Balance
Español: Balanza básica

Basis point:
A term indicating one hundredth of one percentage point (.01%). 100 basis points = 1%. Typically used in expressing
rate or yield differentials.
Français: Point de base
Español: Puntos básicos

Basis swap:
An interest rate swap from one floating instrument into a non floating instrument in the same currency, undertaken to
eliminate or minimize interest-rate risk.
Français: Swap de base
Español: Swap de índices, intercambio de índices

Bear:
A stock market investor pessimist who expects share prices, currency values or commodity prices to fall. Opposite:
Bull.
Français: Baissier
Español: Bajista, especulador a la baja

Bearer bond:
A bond whose owner is not registered on the books of the issuer. Such bonds are held in physical form by the owner,
who receives payments by physically detaching coupons from the bond certificate and handing them to the paying
agent. All Eurobonds are issued in bearer form.
Français: Obligation au porteur
Español: Bono al portador, obligación al portador

Bearer mortgage note:

A mortgage debt instrument or note, issued in a bearer form. The holder of the instrument or note at any time is the
creditor.
Français: Cedule hypothécaire au porteur
Español: Pagaré de hipoteca al portador

Bearer security:
A security whose ownership belongs to whoever carries it. A bearer security is payable to its holder.
Français: Titre au porteur
Español: Título al portador

Beggar-my-neighbour policy:
An international trade policy by a country aimed at seeking domestic gains at the expense of its trading parties (for
instance through competitive devaluations). Such a policy may lead to trade wars.
Français: Beggar-my-neighbour
Español: Beggar-my-neighbour policy
Below par:
A share or a bond whose market value is below its nominal value or face value. A bond will be rated below par when
the market interest rates are higher than at the time the bond was issued. This may also happen if investors are
sceptical about the creditworthiness or future prospects of the company or government which has issued the bond.
Opposite: Above par.
Français: Au dessous du pair
Español: Por debajo de la par, por debajo de su valor nominal, por debajo de la paridad

Beneficiary:
The person in whose favour a letter of credit, an insurance policy or any other payment instrument is issued.
Français: Bénéficiaire
Español: Beneficiario

Berne Union (International Union of Credit and Investment Insurers):

An association founded in 1934, gathering over 40 export credit agencies from developing and industrialised countries.
The Union works for sound principles in the export credit insurance business, through the exchange of information,
constant consultation and close co-operation between its members. The agencies participating in the Berne Union do
so as insurers and not as representatives of their respective governments.
Français: Union de Berne (L’Union Internationale des assureurs de Crédit et d’Investissement)
Español: Unión de Berna (Unión Internacional de Aseguradores de Crédito e Inversiones)

Beta:
An indicator of the risk of a share or a portfolio in relation to the average market risk. A Beta of 0.7 implies that the
yields of the share or portfolio are likely to move up or down by 70% of the average market change. A Beta of 1.2%
indicates that such yields are likely to move up or down 20% more than the average market change. Beta is an index
of systematic risk, i.e. risk linked to general market conditions which cannot be diversified. See also Alpha.
Français: Beta
Español: Beta

Bid; Buying price:

The price or the terms on which a person is willing to buy (e.g. securities, commodities, foreign exchange etc.).
Opposite: Asked price, Offer. See also Tender.
Français: Cours acheteur
Español: Cotización de compra, precio de compra, precio de oferta

Bid Bond:
A guarantee by a party (usually a bank) on the order of the seller, to pay a part of the bid price (usually 5-10%) as
compensation to the buyer should the seller, having accepted the bid by the buyer, be unwilling or unable to fulfil the
tender terms and undertake the corresponding delivery or performance contract. Bid bonds are frequently used in
export financing. See also Guarantee bonds.
Français: Caution de soumission
Español: Fianza de licitación, caución de licitación, aval de oferta
Bid bond coverage:
An insurance or guarantee which protects the supplier or issuing bank from the unjustified or capricious calling of the
bid bond.
Français: Garantie de couverture
Español: Cobertura de la fianza de licitación

Bid rate:
The lower range of interest rate quotations, i.e. the interest rate a bank is prepared to pay for deposits or to acquire
securities.
Français: Taux demandé
Español: Tipo comprador

Bilateral Agreements:
Agreements reached bilaterally between a debtor country and each of the creditor countries participating in a Paris
Club rescheduling. The agreements establish the legal basis of the Debt rescheduling, as set forth in the Agreed
Minute, specify the interest rate on amounts deferred or rescheduled, etc.
Français: Accords bilatéraux
Español: Acuerdos bilaterales

Bilateral deadline:
The date by which all of the Bilateral agreements must be concluded. The period for concluding bilateral agreements is
usually around six months from the date of the Agreed Minute.
Français: Date limite bilatérale
Español: Fecha límite bilateral, plazo máximo bilateral

Bilateral investment treaty (BIT):

A bilateral treaty meant to ensure national or most-favoured-nation treatment for foreign investments deriving from the
partner country. BITs ensure the right to make investment-related transfers and assign top managers in the foreign
country without regard to their nationality. They also guarantee that expropriation takes place only in accordance with
accepted international rules, and access to impartial and binding international arbitration for the settlement of disputes.
Français: Traité d’investissement bilatéral (TIB)
Español: Tratado bilateral sobre inversiones

Bill for collection:

A bill of exchange presented to a bank for collection (and not for discounting). On collection the countervalue of the bill
is credited to the account of the client.
Français: Effet à l’encaissement
Español: Letra por cobrar
Bill guarantee:
A commitment, generally by signature of the document, to honour a bill of exchange if the specified signatories fail to
do so.
Français: Garantie d’un effet
Español: Garantía de la letra

Bill of Exchange (Draft):

An instrument of payment frequently used in international business. It is an unconditional written order signed by the
exporter and addressed to the importer to pay, on demand or at a specified future date, a stipulated monetary sum to
the exporter. See also Commercial paper, Draft, Letter of credit.
Français: Lettre de change (Traite)
Español: Letra de cambio, giro

Bill of Lading (B/L):

A document setting out the terms of the contract between the exporter of the goods and the carrier, under which the
freight is to be transported from the port of shipment to that of destination. The B/L serves as a document of title, a
contract of carriage and a receipt of goods. Its holder has the right to gain possession of the shipped goods.
There are two main types of B/L:
(1) Straight bill of lading: A non-negotiable B/L, under which the goods are handed directly to the stipulated consignee.
(2) Negotiable or Shipper's order bill of lading: This can be bought, sold or traded while the goods are in transit, or
used to support a Letter of credit transaction. To take possession of the shipped goods, the final holder of the B/L
needs the original or a copy as proof of ownership.
See also Air Waybill, Inland Bill of Lading, Ocean Bill of Lading, Through Bill of Lading, Claused Bill of Lading, Clean
Bill of Lading, Foul Bill of Lading.
Français: Connaissement
Español: Conocimiento de embarque

Bill renewal:
Prolonging the validity of a bill by postponing its expiry date.
Français: Effet renouvelable
Español: Renovación de la letra

B/L:
Abbreviation for Bill of lading.
Français: Connaissement
Español: Conocimiento de embarque

Binder:
A temporary insurance coverage pending the later issuance of an insurance policy or certificate.
Français: Couverture d’assurance temporaire
Español: Nota de cobertura, póliza de seguros provisional
BIS:
See Bank for International Settlements.
Français: Banque pour les Réglements Internationaux
Español: Banco de Pagos Internacionales

Black economy:
Transactions of goods and services which are not declared for tax payment and which neither show up in trade
statistics nor are taken into account in the calculation of the Gross National Product (GNP).
Français: Economie de l’ombre
Español: Economía sumergida

Black market:
A general term to indicate an unofficial, parallel market. For instance, foreign exchange black markets typically flourish
in those countries where the local currency is kept artificially higher than its real value.
Français: Marché noir
Español: Mercado negro

Blank draft:
A draft passed on by the drawer without all the details having been filled in. The recipient of the blank draft is entitled
to fill out the draft himself, unless otherwise specified in the document, with the liability remaining with the drawer.
Français: Effet bancaire
Español: Giro en blanco

Blanket assignment:
The assignment of the totality of the debtor's present and future claims to third parties.
Français: Cession globale
Español: Asignación general, cesión global

Blanket credit line:

A fixed amount credit line established for a borrower, i.e. the amount of outstanding credit which may not be exceeded
at any time. Such credit lines can be established for corporate borrowers or countries.
Français: Ligne de crédit globale
Español: Línea de crédito general

Blended Interest Rate:

The effective cost of funds from all lenders, weighted for the amounts provided by each and calculated for the period of
time and the interest rate applied by each lender. Additional charges such as commitment and guarantee fees may be
also included in this calculation.
Français: Taux d’intérêt effectif
Español: Tipo de interés combinado, tipo de interés mixto

Block credit:
A general credit available in an open-ended lending arrangement available for a specified time period. e.g. a credit
line, agreed between an importing and an exporting country, for the extension of long-term export financing or
investment loans.
Français: Block credit
Español: Crédito de bloque

Blocked Exchange/currency:
A currency which is not freely convertible into other currencies because of government restrictions and regulations.
There are generally considered to be three categories of currency: convertible, semi-convertible and non-convertible.
The term Blocked currency refers to the latter two categories.
Français: Monnaie non-convertible
Español: Tipo de cambio bloqueado, moneda bloqueada

Blue chips:
Shares which have the highest quality ranking as investments, as they carry a lower risk of earnings failure, dividend
omissions or bankruptcy of the companies of which they represent a "share", compared with other shares traded on
the market. Blue chip status is normally assigned to the shares of large, well-established and creditworthy companies.
The word originally meant a diamond chip.
Français: Actions de premier ordre
Español: Valor de primera clase, valor de primer orden, acción de primera categoría

Bond:
A financial security, bearing a fixed interest rate, issued by private businesses or governments as a means of raising
money and long-term funds (i.e. borrowing). When an investor buys bonds, he is lending money to the issuer. Bonds
are typically issued for periods of several years, usually with fixed nominal interest rate coupons attached to them in
bearer form. Bonds may be bought and sold at any time on the secondary market before they are finally redeemed, i.e.
repaid at maturity by their issuer.
Français: Obligation
Español: Bono, obligación

Bondholder:
The holder of the issuer's bonds. In the event of liquidation of a private company, bondholders have priority over
shareholders.
Français: Porteur d’obligation
Español: Obligacionista

Bond house:
A firm whose primary activity is the business of underwriting, distributing and dealing in bonds.
Français: Société spécialisée en obligations
Español: Casa de bonos

Bond issue:
A means of borrowing funds through the issue of fixed-interest, medium-to long-term, securities. Bonds are offered for
public subscription during a specified period (subscription period). See also Public offer.
Français: Emission d’obligations
Español: Emisión de bonos, emisión de obligaciones

Bonded exchange:
A general term indicating obstacles to free convertibility (for example, of currencies).
Français: Echange restreint
Español: Cambio depositado

Bonded Warehouse:
A warehouse authorized by customs authorities for the storage of goods on which payment of duties is deferred until
the goods are collected.
Français: Entrepôt en douane
Español: Depósito de aduanas, almacén de aduanas, almacén de mercancías bajo control aduanero, almacén
general de depósito

Book value:
The value at which assets are reported in a business' financial statements and books of account. Usually, fixed assets
are shown at cost less normal depreciation (net book value) while inventories may be considered at cost or market,
whichever is lower. The book value of an asset might be more or less than its market value.
Français: Valeur comptable
Español: Valor contable, valor en libros

Boom; Bull market:

A significant increase in prices or rates, especially in connection with stock, bond or foreign exchange markets.
Opposite: Downturn; slump.
Français: Marché haussier
Español: Auge; mercado alcista

Borrower's note:
A written unconditional promise to pay a sum of money at some future date to a named party, on order or on demand.
Français: Promesse inconditionnelle du débiteur
Español: Pagaré de prestatario
Brady bonds:
Bonds issued by emerging countries under a debt reduction plan.
Français: Obligations Brady
Español: Bonos Brady

Branch:
An economic entity in a foreign country, incorporated in the home country.
Français: Succursale
Español: Branch

Break-even point:
The level at which all the costs sustained are covered. For example, the level of sales at which a project would make
zero profit.
Français: Point de seuil
Español: Punto de equilibrio de ingresos

Bridge financing:
Interim (temporary) financing provided in an export financing transaction. This financing is subsequently replaced by
longer term ECA supported financing.
Français: Financement de relais
Español: Financiamiento transitorio, financiamiento puente

Broken-period interest:
Interest payments, accrued since the last due interest date up to a specified date and prior the next due interest date.
Français: Période d’intérêts rompue
Español: Interés de período incompleto

Broker:
An intermediary engaged in trading in a variety of financial instruments, such as foreign exchange, equities,
commodities, etc. He executes his clients' orders and charges a fee or commission for the services rendered. Brokers
play an important role on the financial markets by bringing together buyers and sellers. Compare with Dealer.
Français: Courtier, Agent de change
Español: Corredor, agente de bolsa

Bubble:
A term indicating a situation where the prices of securities move significantly above their true values.
Français: Bulle
Español: Burbuja
Buffer stock system:
A method of stabilizing and regulating commodity prices. When a commodity's price falls, buffer stock managers buy it
in large quantities in order to steady prices. Purchases are stored in order to be sold off once the price is high again.
Stock managers may also hold certain quantities of a commodity in order to meet future unforeseen supply delays,
disruptions or unexpected increases in demand. See also Net buyer range and Net seller range.
Français: Système de stock tampon
Español: Sistema de reservas de estabilización, sistema de existencias reguladoras

Built-Operate-Transfer (BOT):
A project financing approach which has become very fashionable in recent years. Under a BOT, a government grants
the project sponsor a temporary or permanent license to deliver a particular service. Such a license is generally
sufficient for the sponsors to raise the necessary funds on a project basis. At the end of the license period granted to a
company specifically set up for that purpose, the license or the ownership of the licensed project is handed over to the
host government free of charge or at a pre-agreed price.
Français: Built-Operate-Transfer (BOT)
Español: Construcción, explotación y transferencia

Bull:
A market optimist who buys shares, currency, commodities or other traded assets on the expectation that their value
will rise, so that he can sell them later at a profit. Opposite: Bear.
Français: Haussier
Español: Alcista

Bull-bear bond:
A bond where the repayment of the principal is linked to the market price of another security. Such a bond is issued in
two tranches: repayments in the first tranche increase with the price of the reference security, while those in the
second tranche decrease with the price of the other security.
Français: Obligation haussière-baissière
Español: Bono alcista y bajista

Bulldog bonds:
Bonds issued by foreign borrowers in pounds sterling. Also known as Bulldogs.
Français: Obligations Bulldog
Español: Bono bulldog

Bullet bonds:
Bonds with a fixed maturity which may neither be called nor amortized early by the borrower.
Français: Obligations "bullet"
Español: Bono con vencimiento único

Bullet loan:
A bank loan or syndicated loan with no amortization, i.e. for which no sinking fund is set up. The borrower pays only
interest throughout the life of the loan and at maturity the loan is repaid in a lump sum.
Français: Emprunt "Bullet"
Español: Préstamo de amortización (íntegra) al final del plazo, préstamo reembolsable de una sola vez a su
vencimiento

Business cycle:
A cycle of periodic and repetitive economic expansion and recession.
Français: Cycle économique
Español: Ciclo económico, coyuntura

"Buy Back" deals/Compensation:

See Countertrade.
Français: Opérations de rachat / Compensation
Español: Buy-back

Buyer of an option:
See Option.
Français: Acheteur d’une option
Español: Buyer of an option

Buyer's credit:
A financial arrangement by which a bank, financial institution or export credit agency in the country of the exporter
extends a loan, either directly to the foreign buyer of the exported goods, or indirectly through a bank in the buyer's
country acting on his behalf. The credit is thus meant to enable the buyer/importer to make payments due to the
supplier/exporter under the contract. It is typically a medium-to long-term loan. Compare with Suppliers' credit.
Français: Crédit acheteur
Español: Crédito al comprador

Buyer’s option:
The right of a buyer to modify within a specified period of time one or more of the terms of the contract, as agreed in
advance (e.g. purchased quantities, port of discharge, delivery lot size, date of delivery, etc.).
Français: Option de l’acheteur
Español: Opción del comprador
C
CAC 40 index:
An index based on the daily quotation of 40 major stocks on the Paris stock exchange.
Français: Indice boursier CAC 40
Espa ٌ◌ol: Indice CAC 40

Call …:
(1) Call loans: Credits usually granted to brokers, dealers or investment banks which may be called in by the lender, or
repaid by the borrower, at any time without having to give notice.
(2) Call money: Money deposited or borrowed, usually between banks and financial institutions, with an interest rate
and no fixed maturity. It can thus be called for repayment by the lending bank on demand, or repaid by the borrower at
any time without prior notice.
(3) Call price: The price at which a security can be redeemed when called.
(4) Call option: An Option giving its holder the right, though not the obligation, to purchase a certain number of assets
(such as securities, foreign exchange, commodities, etc.) at a predetermined price (strike price) within a specific period
of time. A call option will thus be exercised if the spot price goes above the strike price. If it is not exercised within the
specified period of time, the option expires. Compare with Put option.
Français: Appeler
Espa ٌ◌ol: Call ...

Call Account:
A deposit account, usually interest bearing, from which funds can be withdrawn at call.
Français: Compte courant
Espa ٌ◌ol: Call ...

Callable bond:
A bond which the issuer has the right to redeem prior to maturity, by paying some specified call price.
Français: Obligation remboursable par anticipation
Espa ٌ◌ol: Bono exigible

Capital:
In general, the money used to run a business. The term may also be used in a narrower sense to refer to the
company's equity or shares (authorized and/or issued), or in some cases to its equity, plus reserves, plus retained
profit (also referred to as shareholders funds).
Français: Capital
Espa ٌ◌ol: Capital

Capital adequacy:
In banking, this refers to the ratio of a bank's capital resources (share capital plus reserves) to its total deposits.
Deductions are made from the former for investments in subsidiaries, goodwill and premises. A high ratio of capital
adequacy is generally regarded as an indicator of a financially reliable bank.
Français: Adéquation du capital
Espa ٌ◌ol: Nivel de (los) recursos propios

Capital appreciation:
The increase in the value of an asset over a period of time.
Français: Plus value en capital
Espa ٌ◌ol: Plusval‫ي‬a

Capital appreciation bonds:

These are usually zero-coupon bonds sold Below par.
Français: Appréciation en capital d’obligations
Espa ٌ◌ol: Bono de plusval‫ي‬a

Capital budgeting:
The evaluation and selection of a company’s planned capital expenditures.
Français: Budget en capital
Espa ٌ◌ol: Presupuesto de capital, presupuesto de gastos de capital, presupuesto de inversiones

Capital expenditures:
Expenditure used for the acquisition of long-term fixed assets, such as plant and equipment.
Français: Immobilisations
Espa ٌ◌ol: Gastos de capital, desembolso de capital, gastos de inversi َ◌n

Capital exports:
Movements of capital from one country to another. These flows may take a variety of forms, such as direct
investments abroad, portfolio investments, grants etc. When the export of capital occurs in response to fears of
political risk, and in violation of the regulations on the international transfer of funds, it is referred to as Flight.
Français: Exportations de capitaux
Espa ٌ◌ol: Exportaci َ◌n de capital

Capital gains:
The difference between the net price at which a security (shares, bonds etc) is sold and the net cost originally paid to
purchase it. If a stock is sold below cost, the difference is a capital loss.
Français: Gains en capital
Espa ٌ◌ol: Beneficios y pérdidas de capital

Capital investment loan:

A loan granted to finance the purchase of Fixed assets, i.e. property, plant, machines, equipment, etc.
Français: Prêt destiné à financer des immobilisations
Espa ٌ◌ol: Préstamo para inversiones de capital

Capital market:
The financial market where medium- and long-term debt instruments (such as bonds and shares of businesses and
public authorities) are traded. Opposite: Money market.
Français: Marché des capitaux
Espa ٌ◌ol: Mercado de capitales, mercado del dinero, mercado financiero

Capital mortgage:
A Mortgage to secure a specific credit/transaction.
Français: Hypothèque
Espa ٌ◌ol: Hipoteca de capital

Capital ratio:
In banking, this indicates a bank's ratio of equity plus reserves to its total assets. A high ratio implies that the bank has
a cushion against bad debts, i.e. the possibility of writing them off against capital.
Français: Ratio de capital
Espa ٌ◌ol: Relaci َ◌n entre el capital y los activos

Capital stock (USA):

See Share capital (UK).
Français: Capital de dotation
Espa ٌ◌ol: Capital stock (USA)

Capital-output ratio:
A measure of the efficiency of the use of capital. The ratio indicates the amount of capital required to produce a
determined level of output. The lower the ratio, the more efficient is the firm or economy. Sometimes the ratio is
expressed as the incremental capital-output (ICOR), which measures the increase in the stock of capital of a firm,
industry or economy over the increase in output over the same period.
Français: Ratio du capital-production
Espa ٌ◌ol: Relaci َ◌n capital-producto, raz َ◌n capital-producto
Capital structure:
The structure of the liabilities and shareholders' equity side of a business' balance sheet, especially the ratio of debt to
equity and the proportion of short and long maturities.
Français: Structure du capital
Espa ٌ◌ol: Estructura de capital

Capitalization:
The debt and/or equity mix of a firm's assets.
Français: Capitalisation
Espa ٌ◌ol: Capitalizaci َ◌n

Capitalized:
Expenditure which has been recorded in the business’ asset accounts and then depreciated or amortized, as
appropriate, for items with a useful life of more than one year.
Français: Capitalisé
Espa ٌ◌ol: Capitalized

Capitalized value:
The current value of a future stream of income. To calculate their current value, future payments are discounted at a
specific discount rate, so that the further in the future they are due the less they are worth now. The discount rate used
is the anticipated interest rate over the period, which indicates the opportunity cost of capital, i.e. the income lost from
not having the future payment to invest now.
Français: Valeur capitalisée
Espa ٌ◌ol: Valor capitalizado

Capped FRNs:
A Floating Rate Note which pays a normal floating rate note coupon up to a maximum set interest rate. If market rates
rise beyond the reference rate, the coupon is fixed at the capped rate. Capped floating rate notes are mainly issued by
banks.
Français: Titre à taux d'intérêt variable avec un maximum déterminé
Espa ٌ◌ol: Bono de interés flotante con techo, bono de interés variable con techo

Carriage Paid To (CPT):

Carriage Paid To (CPT) and Carriage and Insurance Paid to (CIP) a named destination. Used in place of CFR (Cost
and Freight) and CIF (Cost, Insurance and Freight), respectively, for shipment by modes other than water, usually for
the inland portion of a shipment.
Français: Port payé
Espa ٌ◌ol: Flete pagado hasta, porte pagado hasta

Caribbean Common Market (CARICOM):

A regional trade agreement between 13 English-speaking Caribbean nations.
Français: Marché commun des Caraïbes
Espa ٌ◌ol: Mercado Com ْ◌n del Caribe

Carrier:
A freight/transport company operating by air, ocean, road, rail, canal etc. See also inland.
Français: Transporteur
Espa ٌ◌ol: Transportista, cargador

Cartel:
An organization of independent producers of goods or services, set up to regulate the production, pricing or marketing
practices of its members in order to limit competition and to maximize their market power. The Organization of
Petroleum Exporting Countries (OPEC) is among one of the most well known cartels.
Français: Cartel
Espa ٌ◌ol: C‫ل‬rtel

Cash accounting:
An accounting method which reports expenditures and revenues when the actual cash outflow or inflow has occurred.
Français: Comptabilité "cash"
Espa ٌ◌ol: Contabilidad de caja

Cash against documents (CAD):

A method of payment where the title documents to the goods are transferred to the buyer upon payment in cash,
usually with the intervention of a commission house or other intermediary.
Français: Paiement "cash" contre présentation des documents
Espa ٌ◌ol: Pago contra entrega de documentos

Cash discount:
A reduction, usually expressed as a percentage, in the price of a product or the amount of a bill if payment is made
promptly and in cash.
Français: Escompte "cash"
Espa ٌ◌ol: Descuento por pago al contado

Cash flow:
The flow of cash payments to or from a firm during a given period of time. Expenditures are sometimes referred to as
"negative" cash flows.
Français: Flux de trésorerie
Espa ٌ◌ol: Flujo de caja, flujo de efectivo, tesorer‫ي‬a

Cash in advance (CIA):

A payment method whereby the buyer pays the price of the goods or services in full, prior to the actual shipment of the
goods or provision of services. In turn, the seller does not ship the goods or render the services until he has received
payment from the buyer. Once the corresponding payment has been made, the seller sends the documents directly to
the buyer. Under such a payment method, the seller therefore retains total control over the transaction, with the buyer
assuming all the risks (e.g. that the goods ordered and paid for may not be received by the desired date). This
technique is usually only used for small purchases or when the goods are built to order. It may also used when the
buyer's creditworthiness is doubtful, or when the political or economic environment of his country is unstable, etc. In
both Cash in advance and Open account the buyer pays the seller directly, via cheque or money transfer, and the
bank's role is limited to moving the funds from buyer to seller.
Français: Avance en liquide
Espa ٌ◌ol: Pago por adelantado

Cash market:
The market in which commodities, treasury bills and other debt securities are traded against cash, for immediate
delivery.
Français: Marché au comptant
Espa ٌ◌ol: Mercado al contado, mercado de productos disponibles

Cash payment:
In international trade transactions, this refers to the portion paid by the importer prior to shipment (usually 15% of the
total sales price or invoice value). It is mandatory for the extension of most medium and long-term
guarantee/insurance and trade financing facilities.
Français: Paiement cash
Espa ٌ◌ol: Pago en efectivo, pago al contado

Cash price:
See Spot price.
Français: Prix cash
Espa ٌ◌ol: Mercado de entrega inmediata

Cash with order (CWO):

A payment technique whereby the buyer pays for the goods when ordering them, with the transaction being binding on
both parties.
Français: Cash avec ordre
Espa ٌ◌ol: Pago al pedido

Category I or II countries:
A classification of countries under the Consensus framework, based on GNP per capita income.
Français: Pays de la catégorie I ou II
Espa ٌ◌ol: Pa‫ي‬ses de categr‫ي‬a I o II

CD:
Abbreviation for Certificate of Deposit.
Français: CD
Espa ٌ◌ol: CD

Cedel (Centrale de Livraison de Valeurs Mobilières):

A Luxembourg-based, computerized clearing house for Eurobonds.
Français: Cedel
Espa ٌ◌ol: Cedel

Centrally Planned Economy:

See Command economy.
Français: Economie planifiée et centralisée
Espa ٌ◌ol: Econom‫ي‬a de planificaci َ◌n centralizada, econom‫ي‬a dirigida

Certificate:
(1) A record, attestation, confirmation.
(2) A collective document of title for several shares in an investment fund.
(3) A stock (shares) certificate showing the number of units, par value, voting rights.
Français: Certificat
Espa ٌ◌ol: Certificado

Certificate of Deposit (CD):

A money market instrument and negotiable claim, issued by a bank against a short to medium-term deposit (usually
for 1-12 months but in exceptional cases up to 5 years). CDs were first created in U.S. dollars but now also exist in
other currencies. They can be bought and sold on the secondary market and have become an increasingly important
source of funds for banks.
Français: Certificat de dépôt (CD)
Espa ٌ◌ol: Certificado de dep َ◌sito

Certificate of inspection:
A document certifying that the merchandise was in good condition immediately prior to shipment or conforms to the
original order. Pre-shipment inspection is compulsory for the import of goods into many developing countries.
Français: Certificat de contrôle
Espa ٌ◌ol: Certificado de inspecci َ◌n

Certificate of manufacture:
An official statement by the producer of goods that the manufacturing has been completed and that the goods are now
at the disposal of the buyer.
Français: Certificats de fabrication
Espa ٌ◌ol: Certificado de fabricaci َ◌n
Certificate of origin:
A document certifying the country of origin of the merchandise exported. Such documents, required by some nations
for tariff purposes, are usually obtained through a semi-official organization such as a local chamber of commerce. A
certificate may be required even if the accompanying commercial invoice provides such information. See also Rules of
origin.
Français: Certificat d'origine
Espa ٌ◌ol: Certificado de origen

C.F.R:
Abbreviation of Cost and Freight.
Français: C.F.R.
Espa ٌ◌ol: C.F.R.

Charges Forward:
A banking term indicating that foreign and domestic bank commissions, interest and government taxes related to the
collection of a draft are to be charged to the drawee.
Français: Contre remboursement
Espa ٌ◌ol: Gastos a cargo del librado

Chicago Board of Trade:

The first Futures market in the world.
Français: Chicago Board of Trade
Espa ٌ◌ol: Consejo de Comercio de Chicago

Chicago Board Options Exchange:

The first Options market in the world.
Français: Chicago Board Options Exchange
Espa ٌ◌ol: Consejo de Cambio de Opciones de Chicago

Chicago Mercantile Exchange:

The second largest Futures market in the world.
Français: Chicago Mercantile Exchange
Espa ٌ◌ol: Consejo de Intercambio Mercantil

C & I:
Abbreviation of Cost and Insurance.
Français: C & I
Espa ٌ◌ol: C & I
C.I.F.:
Abbreviation of Cost, Insurance and Freight.
Français: C.I.F.
Espa ٌ◌ol: C.I.F.

C.I.F. & C.:

Abbreviation of Cost, Insurance, Freight and Commission.
Français: C.I.F. & C.
Espa ٌ◌ol: C.I.F. & C.

C.I.F. & E.:

Abbreviation of Cost, Insurance, Freight, and (Currency) Exchange.
Français: C.I.F. & E.
Espa ٌ◌ol: C.I.F. & E.

CIP: Carriage and Insurance Paid to

See Carriage Paid To.
Français: Transport et assurance payés à
Espa ٌ◌ol: Flete pagado hasta, porte pagado hasta

Circular Letter of credit:

A letter of credit, purchased by a person intending to travel abroad, authorizing him to obtain funds in local currency at
any one of a number of listed correspondent banks.
Français: Lettre de crédit circulaire
Espa ٌ◌ol: Carta de crédito circular

CIRCUS:
A combined interest rate and currency swap.
Français: CIRCUS
Espa ٌ◌ol: Swap de monedas

CIRR:
See Commercial Interest Reference Rate.
Français: CIRR
Espa ٌ◌ol: CIRR
CISG:
See Convention on Contracts for the International Sales of Goods.
Français: CISG
Espa ٌ◌ol: CISG

Claims payments:
Payments made by an Export credit agency after the expiry of the Claims-waiting period on an insured or guaranteed
loan, where the original borrower or borrowing-country guarantor has failed to pay. The ECA records such claim
payments as unrecovered claims.
Français: Paiements relatifs aux réclamations
Espa ٌ◌ol: Pago de una indemnizaci َ◌n

Claims-waiting period:
The period of time exporters or banks must wait after the default of the importer/borrower before the Export credit
agency will pay their corresponding claim.
Français: Période d'attente des réclamations
Espa ٌ◌ol: Per‫ي‬odo de carencia

Claused Bill of lading:

A bill of lading on which the carrier has noted some exceptions to having accepted the shipper's merchandise for
transport in "apparent good order and condition".
Français: Connaissement clausé
Espa ٌ◌ol: Conocimiento de embarque con cl‫ل‬usulas restrictivas, conocimiento de embarque con reservas

Clean bill of lading:

A bill of lading on which the carrier has indicated that the goods were received in "apparent good order and condition",
without damages or other irregularities as to the condition of the goods or packaging. Compare with Foul Bill of lading
and Claused Bill of lading.
Français: Connaissement net
Espa ٌ◌ol: Conocimiento de embarque limpio, conocimiento de embarque sin reservas, conocimiento de embarque sin
objeciones

Clean draft:
A draft to which no documents have been attached.
Français: Traite nette
Espa ٌ◌ol: Giro sin documentos, letra sin documentos, letra no documentaria

Clean letter of credit:

A letter of credit payable upon presentation of the draft, without any supporting document being required.
Français: Lettre de crédit nette
Espa ٌ◌ol: Carta de crédito simple
Clean floating:
The free movement of a currency on the foreign exchange markets, with no intervention by the government or Central
Bank. Opposite: Dirty float.
Français: Flottement libre
Espa ٌ◌ol: Flotaci َ◌n limpia

Clearing banks:
The commercial banks participating in a Clearing system.
Français: Banques compensatrices
Espa ٌ◌ol: Banco de compensaci َ◌n

Clearing Houses:
Also known as Clearing Offices, these are institutions which undertake settlement of the credit/debt positions
(stemming from sales of securities and derivatives, bank payments, foreign exchange transactions, etc.) between the
members of the Clearing system. Clearing houses play a key role in rationalizing and facilitating the conduct of
financial transactions.
Français: Chambre de compensation
Espa ٌ◌ol: C‫ل‬mara de compensaci َ◌n

Clearing system:
A system set up by a group of financial institutions to settle various payments between themselves. The best known
clearing systems are those created for sorting the payment of cheques drawn on one bank and owed to another. Other
types of clearing schemes include those for sorting out payments linked to the sale of bonds (such as Cedel, and
Euroclear for the sale of Eurobonds).
Français: Système de compensation
Espa ٌ◌ol: Sistema de compensaci َ◌n

Clip and strip bonds:

These are bonds whose principal and coupon portions may be split and sold separately.
Français: Obligations à coupon détachable
Espa ٌ◌ol: Bonos cortados y separados

Closed-end lease:
A lease contract in which there is no residual value at the end of the lease. See also Leasing.
Français: Crédit-bail à valeur résiduelle nulle à l’échéance
Espa ٌ◌ol: Arrendamiento cerrado

Closing accounts:
The balance sheet and profit and loss account (income statement) of a company, prepared at the end of each financial
year.
Français: Comptes de bouclement
Espa ٌ◌ol: Cuenta de cierre, cuenta compensadora

Closing documents:
The documents designed to complete a business transaction.
Français: Documents de clôture
Espa ٌ◌ol: Documento de cierre

Club of Paris:
See Paris Club.
Français: Club de Paris
Espa ٌ◌ol: Club of Paris

Club of ten:
See Group of ten.
Français: Club des dix
Espa ٌ◌ol: Club of ten

Cofinancing:
A general term indicating the joint financing of large projects. With specific reference to developing countries,
cofinancing is usually provided for large infrastructure type projects in the form of loans or grants by several lenders,
including commercial banks, the World Bank or other multilateral agencies and export credit agencies or other financial
institutions.
Français: Cofinancement
Espa ٌ◌ol: Cofinanciamiento, cofinanciaci َ◌n

Collateral:
Literally, "at the side". The term refers to assets pledged as security for a credit, lease or other commitment or liability.
Collateral usually takes the form of assets readily convertible into cash, such as merchandise, bonds, shares, etc. See
also Pledge.
Français: Garantie
Espa ٌ◌ol: Garant‫ي‬a (prendaria)

Collateral bonds:
An American term, to indicate those bonds which are secured by collateral, such as the pledging of mortgages
(collateral mortgage bonds).
Français: Obligations garanties
Espa ٌ◌ol: Bono garantizado
Collateral loan (USA); Lombard loan (UK):
Advances made against the pledging of collateral.
Français: Prêt garanti (USA) ; Prêt-Lombard (GB)
Espa ٌ◌ol: Préstamo con garant‫ي‬a prendaria

Collection:
(1) The presentation for payment of any obligation, bill of exchange, draft or other instrument
(2) A payment arrangement whereby the seller ships the goods and draws a bill of Exchange (draft) on the buyer. The
Collection papers are then sent to the seller's bank with clear instructions for collection through one of its
correspondent banks, located in the country of the buyer. Usually, the title to the goods does not pass to the buyer
(unless the buyer is indicated as Consignee on the transport document) until the buyer has paid or accepted the draft.
Collections are an alternative payment arrangement to Open account or Cash in advance. They are usually used in
connection with the sale of goods rather than the provision of services. See also Documentary Collection.
Français: Encaissement
Espa ٌ◌ol: Recaudaci َ◌n, cuestaci َ◌n, colecta, cobranza, cobro

Collection papers:
All documents (invoices, Bill of lading, etc.) submitted to a buyer in order to receive the payment for a shipment.
Français: Effets destinés à l'encaissement
Espa ٌ◌ol: Documento de cobranza

Command economy; centrally planned economy:

An economy where resources, investment, jobs etc. are allocated and controlled by government decision.
Français: Economie dirigiste, Economie centralement planifiée
Espa ٌ◌ol: Econom‫ي‬a de planificaci َ◌n centralizada, econom‫ي‬a dirigida

Commercial bill:
A Bill of exchange which finances a short-term self-liquidating commercial transaction, as for the export of goods.
Français: Effet commercial
Espa ٌ◌ol: Efecto de comercio

Commercial Interest Reference Rate (CIRR):

A market interest rate, for a specific currency and a specific country for officially supported export loans, set under the
Consensus.
Français: Taux d'intérêt de référence commercial
Espa ٌ◌ol: Tasa de interés comercial de referencia, tipo de interés comercial de referencia

Commercial invoice:
An accounting document (bill) by which the seller claims payment from the buyer for the value of the goods and/or
services supplied. It is prepared by the seller and gives a description of the merchandise, its price, etc. Commercial
invoices are also often used by the government to determine the true value of goods, to assess the applicable custom
duties and to prepare consular documentation. In this case, the government of the country of import specifies the form,
content, number of copies, language and other characteristics of the invoice to be drawn up.
Français: Facture commerciale
Espa ٌ◌ol: Factura comercial

Commercial paper:
This is a form of Promissory note backed by standby Letters of credit. The term applies to notes and acceptances with
a specified maturity date received by a business enterprise in payment for goods sold or services rendered.
Commercial papers are widely used in the United States as a reliable source of short-term financing. When rolled
forward they can also be used to satisfy longer-term financing needs.
Français: Effets de commerce
Espa ٌ◌ol: Efecto mercantil, efectos comerciales

Commercial register:
An official register of companies engaged in a trade, manufacturing or other type of business based on commercial
principles.
Français: Registre du commerce
Espa ٌ◌ol: Registro comercial

Commercial risk:
The risk of non-payment by a non-sovereign or private-sector buyer or borrower arising from default, insolvency and/or
failure to accept and collect the goods which have been shipped according to the supply contract. Compare with
Transfer risk and Political risk.
Français: Risque commercial
Espa ٌ◌ol: Riesgo comercial

Commercial Risk Coverage:

An insurance policy or guarantee cover which gives protection to the supplier or a financing bank against losses linked
to the verification of a Commercial risk. The specific events covered vary with the policy and the insurance agency. For
example, ECAs will not generally cover non-payment due to disputes between the parties to the contract (e.g. over
product quality, supplier performance, etc.).
Français: Couverture du risque commercial
Espa ٌ◌ol: Cobertura de riesgo comercial

Commission:
Compensation paid for work performed, usually based on the volume of the transaction or calculated as a percentage
of the profit. See also Bank commission.
Français: Commission
Espa ٌ◌ol: Comisi َ◌n

Commission agent:
A middleman (such as Broker) who sells the goods without taking title to them, in exchange for a Commission.
Français: Commission d'agent
Espa ٌ◌ol: Comisionista

Commission house:
A firm which buys and sells actual commodities or futures contracts on behalf of its clients, in return for charging a
commission.
Français: Agence de courtage
Espa ٌ◌ol: Casa comisionista

Commissioning:
The date on which, under the contract terms, the plant or equipment supplied should have been completed according
to specification.
Français: Mise en exploitation
Espa ٌ◌ol: Comisionada

Commitment:
A general term indicating the existence of an obligation.
(1) In the credit insurance business, the firm obligation by an Export credit agency to lend, guarantee or insure a credit
according to specified terms, conditions and purposes, for the benefit of a specific importer, as stated in an agreement
or equivalent contract.
(2) In the credit business, the credit obligation assumed by a bank, arising from a loan contact or loan contracts,
towards a specific customer or borrowing country.
(3) In the securities trade, the obligation arising from new purchases of securities.
Français: Engagement
Espa ٌ◌ol: Compromiso

Commitment commission; Commitment commission supplier's fee:

A fee charged by a bank or the supplier of capital goods, payable quarterly or bi-annually, for credit lines granted but
not used during the specified period of time.
Français: Commission d'engagement; Commission d'engagement du fournisseur
Espa ٌ◌ol: Comisi َ◌n de compromiso; comisi َ◌n de compromiso de proveedores de recursos

Commitment fee:
(1) A fee paid (usually on a bi-annual or quarterly basis) by the borrower to compensate his bank for engaging funds
under a specific loan agreement, i.e. the fee on the available but undrawn portion of the financial arrangement. The fee
is usually a fraction of 1 per cent of the funds committed.
(2) A charge by the forfaiter to agree to forfait a transaction and hold a Discount rate for a specified period of time. The
commitment fee will be applied from the date the commitment is made until the date of disbursement or payment.
Français: Commission d'engagement
Espa ٌ◌ol: Comisi َ◌n de compromiso, comisi َ◌n de disponibilidad
Commitments:
An accounting term used within the credit insurance business, indicating the total amount of loans provided and
outstanding plus loans guaranteed or insured by an Export credit agency. Commitments usually include the principal
and the interest due from the importing country on disbursed and undisbursed credits. Sometimes they include not
only the agency's liabilities but also the uninsured parts of the loans. Thus, for an export credit agency, its
commitments are almost always larger than its total Exposure.
Français: Engagements
Espa ٌ◌ol: Compromiso

Committed loan facility:

A legal commitment by a bank to lend to a customer, for instance in the form of a line of credit.
Français: Engagement de facilité de prêt
Espa ٌ◌ol: Facilidad de crédito comprometida

Commodity:
Raw materials or primary products (such as tin, coffee, tea, sugar, wool, cotton, rubber, silver, cocoa, etc.) which
investors buy and sell, and on which derivatives are often created.
Français: Marchandise, Produit
Espa ٌ◌ol: Producto b‫ل‬sico, materia prima, mercanc‫ي‬a, mercader‫ي‬a, producto primario

Commodity bonds:
Bonds whose interest rates or par value is tied to the market price of a specific commodity.
Français: Obligations basées sur des marchandises
Espa ٌ◌ol: Bono indizado seg ْ◌n el precio de un producto b‫ل‬sico, bono indexado a productos

Commodity Fund:
An Investment fund investing mainly in commodity bills and securities, such as grain contracts.
Français: Fonds basés sur marchandises
Espa ٌ◌ol: Fondo de productos b‫ل‬sicos

Commodity linked swap; Commodity price swap:

A financial instrument working essentially as an interest rate swap, but whose payments are based on a commodity
price index rather than an interest rate index. In a basic commodity price swap, two parties periodically exchange cash
payments during a specified period of time. A fixed price payment is typically exchanged against a fluctuating or
market price payment, based on the market price of the underlying commodity.
Français: Opération de change Swap liée à une marchandise; Opération swap liée au prix d’une marchandise
Espa ٌ◌ol: Swap basado en productos b‫ل‬sicos

Commodity swaps:
The exchange of a commodity in its raw form against receipt of the relative refined product (for instance raw sugar in
exchange for refined sugar).
Français: Opérations swap sur matière première
Espa ٌ◌ol: Swap de materia prima

Common equity:
The value of the ordinary shares/common stock issued by a firm.
Français: Valeur des actions ordinaires
Espa ٌ◌ol: Capital b‫ل‬sico

Common stock:
A US term indicating those securities which represent the ownership of a corporation. They have a discretionary
dividend and do not have priority over other types of shares with regard to dividend payments. They are usually the
only class of shares which give a voting right at shareholders' meetings. They are known as ordinary shares in the
United Kingdom. Compare with Preferred stocks or Preference Shares.
Français: Action ordinaire
Espa ٌ◌ol: Acciones ordinarias

Compensating balance:
A deposit account which the bank may require its borrowers to put at its disposal.
Français: Solde compensatoire
Espa ٌ◌ol: Saldo compensatorio

Compensation (Buyback):
See Countertrade.
Français: Indemnisation, Dédomagement (Rachat)
Espa ٌ◌ol: Compensac‫ي‬on

Compensatory financing facility:

A special fund set up by the IMF, to assist member countries experiencing balance of payments problems due to
temporary falls in the price of the basic commodities which they export and on which they are largely dependent.
Français: Facilité de financement compensatoire
Espa ٌ◌ol: Servicio de financiamiento compensatorio

Compensatory Trade:
Any kind of arrangement by which goods and services are bartered.
Français: Commerce compensatoire
Espa ٌ◌ol: Comercio compensatorio

Competitive bidding:
A purchase process whereby the buyer asks potential suppliers to submit competing bids.
Français: Appels d'offres
Espa ٌ◌ol: Licitaci َ◌n p ْ◌blica, concurso p ْ◌blico

Completion Guarantee:
A guarantee, usually provided by the contractor or another responsible party through a Performance bond, undertaking
that the project will be completed by a certain date and will operate at a specified output or efficiency level.
Français: Garantie d'achèvement
Espa ٌ◌ol: Garant‫ي‬a de terminaci َ◌n

Completion risk:
The risk that the project will not be fully completed or constructed on time, or that it will be delivered with design or
technical deficiencies which will not allow it to function properly. This risk may be reduced through the issue of a
Completion guarantee.
Français: Risque d'achèvement
Espa ٌ◌ol: Riesgo de terminaci َ◌n

Compound duties:
See duty.
Français: Droits composés
Espa ٌ◌ol: Arancel compuesto

Compound interest:
The interest rate on a loan calculated not only on the original principal of the loan but also on the accrued interest (i.e.
interest accrued on previous due interest added to the principal). Over time interest charges will therefore grow
exponentially. For instance, a £100 loan earning compound interest of 10% per annum will accumulate to £110 by the
end of the first year, £121 by the end of the second year, etc. Compare with Simple interest.
Français: Intérêt composé
Espa ٌ◌ol: Interés compuesto

Compound value:
The final value of a sum earning Compound interest.
Français: Valeur composée
Espa ٌ◌ol: Valor compuesto

Comprehensive coverage:
See Whole turnover coverage.
Français: Couverture complète tous risques
Espa ٌ◌ol: Comprehensive coverage
Concessional funds/loans:
Sometimes referred to as Soft loans, these are a form of finance for borrowers provided by financial institutions at
interest rates below market rates, where the interest differential is usually covered by a government subsidy to the
financial institutions involved.
Français: Fonds ou prêts subventionnés
Espa ٌ◌ol: Préstamo en condiciones favorables

Concessionality level:
A measure of the degree of concessionality of a credit offered at below-market interest rates or partially as a grant.
The participants to the OECD Consensus have agreed on common methods for the calculation of concessionality. See
also Grant element.
Français: Niveau de subvention
Espa ٌ◌ol: Nivel de concesiones

Confirmation:
A written statement by a business to acknowledge its involvement in a specific deal. For instance, any transaction on
the securities' market should be followed by a confirmation spelling out the settlement date, terms, commission, etc.
Français: Confirmation
Espa ٌ◌ol: Confirmaci َ◌n

Confirmed Letter of credit:

A letter of credit to which the bank in the exporter's country has added its confirmation, implying that the exporter will
be paid even in the event of default by the foreign buyer and/or the foreign bank.
Français: Lettre de crédit confirmée
Espa ٌ◌ol: Carta de crédito confirmada

Confirming service:
A financial service, offered by an independent agency in the exporter's country, which confirms the overseas buyer’s
order and makes payment for the goods in the currency of the exporter. It is mainly used in Europe and allows for the
smooth co-ordination and full payment of the export transaction. The items eligible for confirmation include the
exported goods, inland, air and ocean transportation costs, forwarding fees, custom brokerage fees and duties.
Français: Service de confirmation
Espa ٌ◌ol: Confirmante

Confirming bank:
This is frequently the same institution as the Advising bank. The confirming bank will add its commitment to that of the
issuing bank to pay the beneficiary of a Letter of credit, provided that all the documents are in order.
Français: Banque confirmatrice
Espa ٌ◌ol: Banco confirmante

Confirming house:
A private independent company whose business is the Confirmation of short- or medium-term obligations of foreign
importers towards exporters under a Letter of credit or another type of deferred payment arrangement. The confirming
house will confirm the importer's orders to the manufacturer, either by guaranteeing payment or by undertaking to pay
on behalf of the importer for whom it acts as agent. Confirming houses extensively rely on credit insurance extended
by Export credit agencies to mitigate the risks inherent in their business.
Français: Organisme confirmateur
Espa ٌ◌ol: Comisionista

Conglomerate:
A company involved in two or more unrelated businesses, often with the aim of diversifying its operations and sources
of income and thus reducing risks. Conglomerates usually consist of a group of firms owned by a Holding company,
acting as the "umbrella" organization in which all shares are vested.
Français: Conglomérat
Espa ٌ◌ol: Conglomerado

Consensus:
Formally named the "Arrangement on Guidelines for Officially Supported Export Credits", it consists of a framework of
rules governing Export credits agreed by the members of the OECD's export credit group. The Consensus guidelines
set the minimum interest rates allowed on officially supported export credits, maximum repayment terms, notification
procedures when the guidelines are exceeded and the terms under which supplier and buyer credits can be made
available to overseas customers.
Français: Consensus
Espa ٌ◌ol: Acuerdo

Consignee:
The person, firm or representative named in a freight contract to whom the shipped goods are to be delivered and
turned over at a particular destination. For export control purposes, the nature of the consignee may be differentiated
between intermediate and ultimate consignee.
Français: Consignataire
Espa ٌ◌ol: Destinatario, consignatario, receptor

Consignment:
A sale arrangement whereby the exporter (consignor) delivers the merchandise to an agent (consignee) under an
agreement that the agent will sell it for the account of the exporter. Under this kind of arrangement, the
consignor/exporter retains title to the goods until thy are sold, while the consignee/agent sells the goods in exchange
for a Commission and remits the net proceeds to the consignor.
Français: Consignation
Espa ٌ◌ol: Consignaci َ◌n

Consignor:
The seller or shipper of merchandise.
Français: Consignateur
Espa ٌ◌ol: Expedidor, remitente, cargador
Consolidated debt:
A long-term, funded debt of a public authority (e.g. bond issue). Opposite: Floating debt.
Français: Dette consolidée
Espa ٌ◌ol: Deuda consolidada

Consolidation:
(1) With reference to government debt, the term indicates the conversion of outstanding short-term debts into fixed,
long-term debts.
(2) Within a stock exchange, the term refers to the stabilisation of price levels on the stock exchange following a
downturn.
(3) When relating to a holding, the term indicates the process of combining and merging the
separate balance sheets of the companies belonging to the group into one single consolidated balance sheet.
Français: Consolidation
Espa ٌ◌ol: Consolidaci َ◌n

Consortium bank:
A bank set up and owned by a group of other banks, with no one of them holding a majority share. The participants of
the consortium may or may not be of the same nationality. Consortium banks are common in the Euromarket and are
active in loan Syndication.
Français: Banque du consortium
Espa ٌ◌ol: Banco consorcial

Consortium project:
A project structured by two or more parties as a partnership or Joint venture.
Français: Projet de consortium
Espa ٌ◌ol: Proyecto en consorcio

Construction Loan:
See Contractor loan.
Français: Prêt à la construction
Espa ٌ◌ol: Construction loan

Consular declaration:
A formal statement addressed to the consul of the foreign country of export, describing the goods to be shipped. The
approval of the consul must be obtained before shipment.
Français: Déclaration consulaire
Espa ٌ◌ol: Declaraci َ◌n consular

Consular documents:
Documents such as Bills of lading, Certificates of origin or special Consular invoice forms which need to be officially
signed by the consul of the country of destination of a shipment.
Français: Documents consulaires
Espa ٌ◌ol: Documentos consulares

Consular invoice:
A document, required by some countries, which provides information on the shipment of goods (e.g. consignor,
consignee, value of the shipment, etc.). It needs to be certified by a consular official of the country of export and is
then used by the local customs officials to verify the value, quantity and nature of the shipment.
Français: Facture consulaire
Espa ٌ◌ol: Factura consular

Consumer credit:
A credit, granted by a firm to its clients, for the purchase of goods or services. Also known as retail credit.
Français: Crédit à la consommation
Espa ٌ◌ol: Crédito al consumo, crédito al consumidor

Consumer durables:
Goods, purchased by individual consumers, which are supposed to have a relatively long "life", such as cars, domestic
appliances etc., as opposed to consumer goods.
Français: Biens durables
Espa ٌ◌ol: Bienes de consumo duraderos

Contango:
A condition in the commodity market when Spot prices are lower than Futures prices. This happens because investors
expect commodity prices to rise or remain stable (even with stable prices futures prices will always be slightly higher
than spot ones to cover interest costs). Opposite: Backwardation.
Français: Report
Espa ٌ◌ol: Contango

Contingent claim:
A claim which can only be made if one or more of the specified outcomes occur.
Français: Réclamation liée conditionnelle
Espa ٌ◌ol: T‫ي‬tulo de crédito eventual

Contingent liability:
A possible future liability, i.e. a liability which becomes such only if some event occurs. For example, a guarantor
becomes liable for his guarantee only if the debt he has guaranteed goes unpaid by the debtor.
Français: Engagement conditionnel
Espa ٌ◌ol: Pasivo contingente, obligaci َ◌n contingente
Contract bond:
A bond or guarantee, provided by a bank to an overseas importer to cover him against possible negative events.
Français: Obligation contractuelle
Espa ٌ◌ol: Fianza de contratista

Contractor:
Within a project, the company responsible for the engineering, procurement and construction activities of the project.
Français: Entrepreneur
Espa ٌ◌ol: Contratista

Contractor loan:
A loan extended to a building contractor or craftsman providing him with the necessary Working capital (to cover
salaries, materials and any other periodic production costs). The borrower will subsequently repay the equivalent
amount of the loan by using the proceeds of the Permanent financing or the operating revenues at the completion of
the project. The term can also be used to refer to a loan facility provided by the building contractor.
Français: Prêt de construction
Espa ٌ◌ol: Préstamo a contratistas

Convention on Contracts for the International Sales of Goods (CISG):

A UN convention establishing uniform legal rules for the drafting of international goods sales contracts and covering
the rights and obligations of the parties. The CISG applies automatically to all sales contracts between traders from
two countries which have both ratified the CISG, unless the parties to the contract explicitly exclude all or part of the
CISG or expressly state that they wish to be governed under a law other than the CISG.
Français: Convention relative aux contrats de ventes internationales de biens
Espa ٌ◌ol: Convenci َ◌n sobre los Contratos de Compraventa Internacional de Mercader‫ي‬as, Convenci َ◌n de Viena
sobre Compraventas

Conversion:
(1) Debt restructuring and refinancing, i.e. the replacement of old obligations or debt instruments with new bonds or
instruments of the same company or institution, but on different terms and conditions (a typical example is the
conversion of Debentures into equity in the restructuring of public companies).
(2) The Renewal of a bank-issued medium-term loan.
(3) The exchange of Convertible bonds into shares.
(4) In the foreign exchange sector, the exchange of a credit balance or claim expressed in one currency into a balance
or claim in another currency.
Français: Conversion
Espa ٌ◌ol: Conversi َ◌n

Conversion ratio:
The number of Ordinary shares/Common stock which the security holder will receive if he decides to exercise the
option of a convertible security (such as a Convertible bond).
Français: Rapport de conversion
Espa ٌ◌ol: Relaci َ◌n de conversi َ◌n

Convertibility:
The freedom to exchange one currency into another without government restrictions or controls.
Français: Convertibilité
Espa ٌ◌ol: Convertibilidad

Convertible:
Loans, preference shares or debentures which carry the option of conversion at a predetermined future date, into cash
in the case of a loan, or into ordinary shares for preference shares or debentures.
Français: Convertible
Espa ٌ◌ol: Convertible

Convertible bond; convertibles:

Bonds issued by a corporation which may be converted into the corporation's Common stock/Ordinary shares within a
specified time period and at a specific price, at the option of the holder.
Français: Obligation convertible, convertibles
Espa ٌ◌ol: Bono convertible

Convertible currency:
A currency which can be bought and sold for another currency at will.
Français: Monnaie convertible
Espa ٌ◌ol: Moneda convertible

Convertible loan stock:

Long-term debts/debentures/bonds, which are convertible, at some future date and at the option of the lender, into
equity, i.e. Ordinary shares/Common stock of the borrowing company.
Français: Prêt convertible en actions
Espa ٌ◌ol: Préstamo de acciones convertibles

Convertible preferred stock:

Preferred shares which may be converted into Common/Ordinary shares of the issuing company, at the option of the
holder.
Français: Action privilégiée convertible
Espa ٌ◌ol: Acciones preferentes convertibles

Corporate bonds:
Debt obligations issued by private corporations, typically paying bi-annual Coupons and whose Face value is repaid at
the bond's maturity.
Français: Obligations de la société
Espa ٌ◌ol: Bono empresarial

Corporate finance:
Financial transactions undertaken by a corporation.
Français: Financements de société
Espa ٌ◌ol: Finanzas empresariales

Corporate tax:
A tax on company profits.
Français: Taxe sur les sociétés
Espa ٌ◌ol: Impuesto sobre las sociedades (de capital)

Corporation:
A legal entity which is separate and distinct from its owners, set up for the conduct of economic activities.
Français: Société
Espa ٌ◌ol: Sociedad de capital

Correspondent Bank:
A bank which, within its own country, handles the business of a foreign bank, i.e. receives and makes money
payments in addition to rendering other services on behalf of the foreign bank. A bank's accounts held with a
correspondent bank are known as Nostro account. Correspondent banks play an essential role in the smooth conduct
of foreign trade and financial transactions.
Français: Banque correspondante
Espa ٌ◌ol: Banco corresponsal

Cosmetic interest rates:

The term refers to interest rates, below market rates, which are specified in some government contracts, without
however entailing a Grant element. These rates are sought by some borrowing countries and are "cosmetic" because
in reality exporters compensate for the lower interest rate by raising the value of the export contract.
Français: Taux d'intérêts cosmétiques
Espa ٌ◌ol: Tipo de interés cubierto

Cost and freight (CFR):

A pricing term used in the foreign trade of goods through ocean shipment. It indicates that all the expenses for
shipment and freight up to the port of destination are included in the quoted price of the goods. The cost of insurance
however is left to the buyer's account. When the export is conducted through modes other than ocean shipment, the
term used is Carriage paid to (CPT).
Français: Coût et fret
Espa ٌ◌ol: Costo y flete, C y F

Cost and Insurance:

A pricing term indicating that these costs are already included in the quoted price, i.e. covered by the seller.
Français: Coût et assurance
Espa ٌ◌ol: Costo y seguro

Cost-Insurance-freight (CIF):
Under this term, the price of the goods quoted by the seller includes the cost of insurance, transport and other
miscellaneous charges sustained until the point of debarkation from the vessel. When the goods are transported
through modes other than ocean shipments, the term used is Carriage and insurance paid to (CIP).
Français: Coût assurance fret (CIF)
Espa ٌ◌ol: Costo, seguro y flete (CIF)

Cost, Insurance, Freight and Commission:

A pricing term indicating that all these costs are included in the quoted price by the seller, i.e. covered by him.
Français: Coût, assurance fret et commission
Espa ٌ◌ol: Costo, seguro, flete y comisi َ◌n

Cost, Insurance, Freight and Currency Exchange:

A pricing term indicating that these costs are included in the quoted price (i.e. covered by the seller).
Français: Coût, assurance, fret et change monétaire
Espa ٌ◌ol: Costo, seguro, flete y cambio

Cost of funds:
In general this is the interest rate associated with borrowing money. It is also used as the basis for the loan pricing, i.e.
the determination of the interest rate charged on the loan, particularly when the source of funding is uncertain or
includes Reserve assets costs. In the case of a commercial bank, the cost of funds for a loan is the Offered rate, i.e.
the interest rate which the bank has to pay another bank to borrow funds. See also LIBOR, PIBOR.
Français: Coût des fonds
Espa ٌ◌ol: Costo de fondos

Cost of Production (COP):

This refers to the sum of the cost of raw materials, components and other inputs used in the production of goods,
including an appropriate allocation for general administrative and selling expenses. COP does not include any
mandatory minimum general expense or profit.
Français: Coût de production
Espa ٌ◌ol: Costo de producci َ◌n
Costs of manufacture (COM):
Within a Dumping investigation, the costs of manufacture are calculated as the sum of the manufacturing inputs
(materials, labour, etc.) plus both the direct and indirect overhead expenses required to produce the merchandise
under investigation.
Français: Coût de fabrication
Espa ٌ◌ol: Costo de manufactura

Counter Credit:
A variation of Back-to-back credit whereby a second bank (usually that of the original beneficiary) issues a separate
letter of credit in favour of the second beneficiary.
Français: Contre-crédit
Espa ٌ◌ol: Contracrédito

Counter-indemnity:
An irrevocable commitment by the exporter that he will repay the bank if a Performance bond or a Down-payment
bond is called.
Français: Contre-indemnité
Espa ٌ◌ol: Contraindemnizaci َ◌n

Counterpurchase:
See Countertrade.
Français: Contre-achat
Espa ٌ◌ol: Compra de contrapartida

Countertrade:
A means of trading, whereby the exporter is required to accept goods or other instruments of trade in part or whole
payment for his sales. This allows the buying country to save foreign currency. Countertrade is thus used by countries
experiencing foreign exchange shortages. Countertrade may take different forms, including barter, buy-back or
compensation, counterpurchase, offset requirements, swap, switch, evidence or clearing accounts. As a means of
payment, countertrade is not encouraged by international and multinational financial institutions as the price setting
mechanisms underlying such transactions frequently lack transparency.
(1) Barter is the oldest and simplest method of countertrade by which goods are exchanged against other goods of
equivalent value. It is the only way of undertaking trade with no or little money involved. As it does not involve the use
of money, it is often used by countries with Blocked currencies.
(2) Counterpurchase is one of the most common forms of countertrade. Under this arrangement, the exporter
undertakes to buy goods from the importer or from a company nominated by the importer, or agrees to arrange for
their purchase by a third party, within a specific period (usually one-to-five years). Both parties pay for their purchases
in cash (at least in part) but commit themselves, by signing a "protocol" contract, to fulfil the purchase counter
obligation. The goods being sold in exchange are typically unrelated but may be equivalent in value.
(3) In offset, the exporter agrees to use goods produced in the importer's country as an input of the products being
sold, and up to an agreed percentage of the original sale. In a direct offset, the exported goods are an integral part of
the final product, and the agreement involves a co-production arrangement based on the transfer of production
technology to the importing country. In an indirect offset the selling country agrees to purchase unrelated products
from the importing country.
(4) In a compensation or buy-back deal, exporters of equipment, technology, or even entire plants, agree to purchase
a certain percentage of the output of the facility as payment
(5) Switch is a complex form of barter, involving a chain of buyers and sellers in different markets and countries, based
on the multilateral clearance of bilateral trade imbalances. A specialized countertrade house will typically buy (at a
discount) from country A the value of its bilateral trade surplus with country B, and sell it at full value to company or
country C, which has a bilateral trade deficit with party A. The trading house will often have to take title to certain
goods, which it then has to sell against hard currency.
Français: Commerce d’échange
Espa ٌ◌ol: Comercio de compensaci َ◌n

Countervailing duty:
An additional duty, imposed by a country on imported goods, to counter subsidies granted to the exporters of the
goods by their domestic governments. Such duty is allowed by the GATT rules, provided that the importing country
can prove that the subsidy would directly injure the domestic industry.
Français: Droit compensateur
Espa ٌ◌ol: Derecho compensatorio

Country of export destination:

The country where the exported goods are to be consumed or further processed, as known to the shipper at the time
of export. If the shipper is not aware of the country of final destination of the merchandise, the shipment is attributed to
the last known country of delivery.
Français: Pays de destination de l’exportation
Espa ٌ◌ol: Pa‫ي‬s de destino de las exportaciones

Country risk:
The general level of political and economic uncertainty in a country. It is the risk of lending to the most creditworthy
borrower in that country, namely of investing in securities issued by the national government. In general, banks must
assess the economic and financial conditions of the country in which a potential borrower resides. Shortages of foreign
exchange are a typical element of country risk which might prevent repayment of the loans.
Français: Risque pays
Espa ٌ◌ol: Riesgo pa‫ي‬s

Country risk categories:

Used by all Export credit agencies to rank borrowing countries according to their perceived creditworthiness, i.e. their
Country risk. Each agency has a different number of risk categories. In general, "category one" countries are those
considered as presenting the lowest country risk.
Français: Catégories de risque pays
Espa ٌ◌ol: Categor‫ي‬a de riesgo pa‫ي‬s

Coupon:
The periodic interest payment made to the holders of a Bond during the life of the bond. The coupon may be physically
cut off the bond and sent to the authorized paying agent when due for payment.
Français: Coupon
Espa ٌ◌ol: Cup َ◌n
Coupon Rate:
The stated interest rate payable on a Bond, paid at least once a year.
Français: Taux du coupon
Espa ٌ◌ol: Interés nominal

Covenant:
A loan covenant is an undertaking by the borrower to perform certain acts (affirmative covenant), such as providing
timely financial statements to the lender, or to refrain from certain acts (negative covenant), such as incurring further
debts beyond the agreed level.
Français: Convention
Espa ٌ◌ol: Compromiso de crédito, contrato de préstamo, garant‫ي‬a de préstamo

Cover:
A general term for the techniques which may be used by a business to manage and control risks. In international trade
transactions this may be achieved through the issue of an export credit guarantee/insurance, against the risk of non-
payment or of payment delays. In this case, cover is usually, though not always, provided both for Commercial risk and
Political risk. Cover is not usually provided for the full value of the due payments but is typically between 90% and 95%
of the contract value.
Français: Couverture
Espa ٌ◌ol: Cobertura

Covered option:
An option where the option writer owns the underlying stock represented by the option contract. A covered option limits
the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option
decides to exercise it.
Français: Option couverte
Espa ٌ◌ol: Valor con moneda de reembolso opcional

CPT:
See Carriage Paid To.
Français: CPT
Espa ٌ◌ol: CPT

Credit:
A general term for money loaned.
(1) The ability to borrow money on the promise of future repayment.
(2) In accounting, an entry made on the liabilities’ side of an account.
(3) In finance, an amount loaned to a borrower.
Français: Crédit
Espa ٌ◌ol: Crédito
Credit agreement:
A contractual document by which the bank or another lender grants a client the loan he has applied for.
Français: Contrat de crédit
Espa ٌ◌ol: Acuerdo de crédito, contrato de crédito

Credit commission:
A fee charged by the bank, in addition to the interest rates, to compensate for special services or as a risk premium for
the loans being extended. See also Bank commission.
Français: Commission de crédit
Espa ٌ◌ol: Comisi َ◌n de crédito

Credit history:
Past repayment performance.
Français: Historique du crédit
Espa ٌ◌ol: Antecedentes crediticios

Credit line:
See line of credit.
Français: Ligne de crédit
Espa ٌ◌ol: L‫ي‬nea de crédito

Credit memorandum:
A written agreement by which the bank grants its client a credit or a line of credit.
Français: Memorandum de crédit
Espa ٌ◌ol: Nota de crédito

Credit rating:
See Rating.
Français: Notation de crédit
Espa ٌ◌ol: Credit rating

Credit risk insurance:

Insurance designed to cover the risks of non-payment of a credit.
Français: Assurance du risque de crédit
Espa ٌ◌ol: Seguro contra el riesgo de crédito

Credit overdrawing:
The drawing of funds beyond the agreed limit or Line of credit. See also Overdraft.
Français: Dépassement de crédit
Espa ٌ◌ol: Giro de crédito en descubierto

Creditor clubs:
See Paris club, London club.
Français: Clubs créanciers
Espa ٌ◌ol: Club de Par‫ي‬s, Club de Londres

Creditworthiness; Credit solvency:

The ability to repay loans and debts and, in general terms, the financial strength of a company or a person. It is also
determines the Rating of a company or a government placing a bond issue.
Français: Solvabilité Solvabilité du crédit
Espa ٌ◌ol: Solvencia, capacidad crediticia

Cross-border loans:
Typically, this refers to a situation when a bank in one country lends to a borrower in another country. The term may
also refer to a Syndicated loan granted by a group of banks from one or more countries for the financing of a project or
a borrower in another country.
Français: Prêts transfrontaliers
Espa ٌ◌ol: Préstamo internacional

Cross-currency loan:
A loan extended by a bank in one country to a borrower either in the same country or in a second country, where the
currency denomination of the loan is that of a third country.
Français: Prêt monétaire croisé
Espa ٌ◌ol: Préstamo entre dos o m‫ل‬s monedas

Cross-hedging:
The practice of Hedging a risk by buying or selling a futures contract which is similar but different from the underlying
contract being hedged.
Français: Protection croisée
Espa ٌ◌ol: Coberturas cruzadas

Cross rate:
An exchange rate between two currencies, calculated as the ratio of the two foreign exchange rates in relation to a
third currency, i.e. by pricing the two currencies against a third. e.g.: USD 1 = CHF 1.4900 and USD 1 = DM 1.7950
equals DM 100 = CHF 83.00.
Français: Taux croisés
Espa ٌ◌ol: Tipo cruzado
Cum dividend:
"With dividend". The purchaser of "cum div" shares or stocks is entitled to the dividend on the next-payment day. i.e.
the purchased shares or stocks are sold together with the right to collect the dividend, which has been announced but
not yet distributed. Shares and stocks are usually sold "cum div". The opposite "ex div" means that the buyer has
purchased them too late to have the right to that year's dividends.
Français: Avec dividende
Espa ٌ◌ol: Con dividendo

Currency option:
The right, though not the obligation, to purchase a specified amount of foreign currency at a predetermined rate and at
a specified future date. See Option.
Français: Option monétaire
Espa ٌ◌ol: Opci َ◌n de cambio

Currency parity:
See Parity.
Français: Parité monétaire
Espa ٌ◌ol: Paridad cambiaria

Currency risk (post-contract or post-natal):

The risk of an unfavourable evolution of the foreign exchange rate, between the time a contractual decision
(purchase/sale) has been taken and the time the corresponding foreign currency is bought/sold on the foreign
exchange market.
Français: Risque monétaire (postérieur au contrat ou post-natal)
Espa ٌ◌ol: Riesgo cambiario posterior al contrato

Currency risk (pre-contract or ante-natal):

The risk of an unfavourable evolution of the foreign exchange rate between the time of the pricing decision of a
transaction involving foreign currency, and the time the actual contractual commitment is made.
Français: Risque monétaire (antérieur au contrat ou ante-natal)
Espa ٌ◌ol: Riesgo cambiario previo al contrato

Current account (external trade):

See Balance of payments.
Français: Compte courant
Espa ٌ◌ol: Cuenta corriente

Current assets:
Cash, bank deposits and other assets which can readily (within one year) be turned into cash, such as Bills, Accounts
receivable, stock, Marketable securities. Opposite: Fixed assets.
Français: Actifs circulants
Espa ٌ◌ol: Activo corriente, activo circulante

Current account credit:

If a bank's client draws funds beyond the amount available in his account, he overdraws his account. This overdraft
can, in the case of good client, be converted into a current account credit by which the client may draw funds at any
time, up to an agreed limit within the contractual period. This facility is particularly useful to cover the changing credit
needs of corporate clients. It may take the form of secured or unsecured loan.
Français: Crédit en compte courant
Espa ٌ◌ol: Crédito en cuenta corriente

Current liability:
Any liability which must be honoured within one year.
Français: Dette courante
Espa ٌ◌ol: Current liability

Current liabilities:
Liabilities due to be paid within one year from the balance sheet date, for example Dividends, taxes, Trade creditors
(UK) / Accounts payable (US).
Français: Dettes courantes
Espa ٌ◌ol: Pasivo circulante, pasivo corriente, pasivo exigible a corto plazo, obligaciones a corto plazo

Current ratio:
A Liquidity ratio expressed as the ratio between a business' Current assets and its Current liabilities. It is a measure of
a company's liquidity which may be used in comparing it with another company or in order to examine its evolution
over time. A high current ratio indicates a larger liquidity and thus a greater ability to meet unexpected payments. It
may however mean that the company’s resources are inefficiently tied up in unproductive assets, such as cash or
debtors. See also Acid test.
Français: Coefficient de liquidité
Espa ٌ◌ol: Coeficiente de solvencia

Current yield:
This measures the annual income return on a particular security, expressed as an annual percentage: Current yield(%)
= Coupon/(Net price*100)
Français: Rendement courant
Espa ٌ◌ol: Rendimiento corriente

Cushion bonds:
High-coupon bonds which sell at only a moderate Premium because they are callable at a price below that at which a
comparable non-callable bond would sell.
Français: Obligations à taux d'intérêt élevé
Espa ٌ◌ol: Bono amortiguador
Customs:
The national authorities charged with the collection of the duties levied by a country on imports and exports. The term
may also indicate the procedures involved in such collection.
Français: Douane
Espa ٌ◌ol: Aduana

Customs house broker:

An individual or firm licensed to clear goods at the Customs.
Français: Courtier en douane
Espa ٌ◌ol: Agente de aduanas

Customs Union (CU):

A regional trade agreement whereby member countries agree to remove any tariff and customs barriers on intra-
regional trade and to set up a common external tariff on imports from countries outside the Union.
Français: Union douanière
Espa ٌ◌ol: Uni َ◌n aduanera

Cutoff date:
This is established at the time of a country's first Paris Club Debt rescheduling. "Post-cutoff date debts", i.e. loans
contracted after the cutoff date, are not eligible for rescheduling and have priority in debt servicing over "pre-cutoff date
debts".
Français: Date de fermeture, de clôture
Espa ٌ◌ol: Fecha l‫ي‬mite
D
D/A:
Abbreviation for Documents against acceptance.
Français: D/A
Espa ٌ◌ol: D/A

Date Draft:
A draft which matures a specified number of days after its date of issue, regardless of the date of its acceptance.
Compare with Sight draft, Time draft.
Français: Date d'échéance de la traite
Espa ٌ◌ol: Giro fechado

Day-to-day money:
See Call money.
Français: Argent au jour le jour
Espa ٌ◌ol: Day-to-day money

Dealer:
A person, or a company, who buys securities for his own account (at his Bid price) or sells them from his own account
(at his asked price). Compare with Broker.
Français: Courtier
Espa ٌ◌ol: Vendedor, agente, concesionario, revendedor, expendedor, detallista, agente de valores

Debenture:
A term indicating a fixed-interest Bond secured against the issuing company’s assets (these may consist either of
specific assets of the company or of its assets in general). Debenture bonds are distinct from ordinary bonds, the latter
being unsecured. Debentures will be paid whether the issuing company makes a profit or not and, in case of
Liquidation, debenture holders have priority over ordinary bond holders on the company's remaining assets.
Debentures can be bought and sold on a stock Exchange.
Français: Obligation, reconnaissance de dette
Espa ٌ◌ol: Obligaci َ◌n

Debt-equity ratio:
The ratio of a company's long-term liabilities (debts) to its Equity (i.e. shareholders' funds). The higher the ratio, the
greater the financial Leverage/Gearing of the firm.
Français: Coefficient fonds propres/endettement, Ratio fonds propres/endettement
Espa ٌ◌ol: Relaci َ◌n entre deuda y recursos propios, raz َ◌n entre deuda y capital, relaci َ◌n de obligaciones a patrimonio
Debt ratio:
The ratio of a company's long-term liabilities (debts) to its total long-term capital employed, i.e. debt plus Equity. See
also Gearing.
Français: Coefficient, Ratio d'endettement
Espa ٌ◌ol: Coeficiente de endeudamiento

Debt refinancing:
The procedure by which overdue payments or future debt-service obligations on an Officially supported export credit
are repaid by setting up a new refinancing loan. Such a loan may be extended by an Export credit agency, a
governmental institution or a commercial bank. In the latter case it will carry the guarantee of the export credit agency.
Français: Refinancement de la dette
Espa ٌ◌ol: Refinanciaci َ◌n de la(s) deuda(s)

Debt rescheduling:
In general, the procedure of readjustment of the terms applying to the existing liabilities of a company or a country,
such as a reduction of the interest rates applied and/or an extension of the time required for payment.
(1) In an Export credit agency, the term refers to the procedure by which overdue payments or future debt-service
obligations on a existing officially supported export credit are converted into a claim by the export credit agency on the
debtor country carrying a revised stream of payments.
(2) In the case of heavily indebted developing countries, it indicates the agreement between debtor and creditor
countries to modify the terms of the loan when the borrowing country experiences serious debt-servicing problems.
Rescheduling may take the form of an extension of the debt maturity date, delayed loan principal payments, reduction
of the interest rate, transformation of short-term credits into medium- or long-term lending, etc. See also London Club
and Paris Club.
Français: Ré-échelonnement de la dette
Espa ٌ◌ol: Reescalonamiento (del servicio) de la deuda, renegociaci َ◌n de los vencimientos de la deuda

Debt restructuring:
A general term covering both the rescheduling or refinancing of debt-service payments in arrears and/or of future debt-
service payments, in response to external payment difficulties.
Français: Restructuration de la dette
Espa ٌ◌ol: Reestructura de deuda, renegociaci َ◌n de los pagos (del servicio) de la deuda

Debt-Service Ratio:
The ratio of a country's repayments on its foreign debt to its hard-currency export earnings. This ratio is calculated by
dividing the sum of the debt repayments (principal and interest) during a reference year by the country's exports for
that year. The debt/service ratio is one of the criteria used to measure a country's creditworthiness.
Français: Coefficient : dette-service de la dette
Espa ٌ◌ol: Proporci َ◌n del servicio a la deuda, coeficiente del servicio a la deuda

Debt Servicing:
The payment of current interest on borrowed funds, together with the repayment of the principal amount when due.
Français: Service de la dette
Espa ٌ◌ol: Servicio de la deuda

Deep discount bonds:

Created in the 1970s and used by companies seeking to maximize their immediate Cash flow and investors keen to
avoid taxation. These are bonds which carry little or no interest but are sold by the issuing company at a price well
below their face value.
Français: Obligations très largement escomptées
Espa ٌ◌ol: Bono de descuento intensivo, pagaré de descuento intensivo

Default:
The failure to repay a loan on schedule or to make timely payment of interest. If the borrower defaults, his bank will
initiate certain legal actions to recover its money or seize the security pledged as collateral for the loan.
Français: Défaut
Espa ٌ◌ol: Incumplimiento

Default interest:
The interest rate charged on an overdue debt, from the date of Default to the date of (eventual) settlement.
Français: Intérêt de défaut
Espa ٌ◌ol: Intereses por mora

Defeasance:
A financing technique used by large companies to borrow money without showing it on their balance sheets. The funds
borrowed by the company are used to buy government securities and the income from such securities is used to meet
the servicing costs of borrowing. Both the initial borrowing and the securities purchased with it are then tied up in a
trust external to the company’s balance sheets.
Français: Defeasance
Espa ٌ◌ol: Anulaci َ◌n, revocaci َ◌n

Deferred call:
A clause which prohibits the issuing company from calling the Bond before a certain date.
Français: Appels différé
Espa ٌ◌ol: Pago diferido

Deferred letters of credit:

A Letter of credit calling for payment at a fixed future date, where the documents do not need to be accompanied by a
draft.
Français: Lettres de crédit différées
Espa ٌ◌ol: Carta de crédito diferida
Deferred payment credit:
An arrangement under which payments due to the exporter on presentation of the shipping documents are deferred for
an agreed period of time.
Français: Paiement de crédit différé
Espa ٌ◌ol: Crédito con pagos diferidos

Deferred stocks:
Shares where payment of the coupon is deferred. It also refers to a stock where market appreciation is expected at a
later stage.
Français: Actions différées
Espa ٌ◌ol: Acciones diferidas

Deficit:
This signifies "in the red", a financial shortfall. For instance, a government will experience a budget deficit when its
expenditures exceed its revenues during the reference financial year.
Français: Déficit
Espa ٌ◌ol: Déficit

Deflation:
Opposite of inflation. i.e. a sharp decline in prices, leading to an improvement in the purchasing power of money,
brought about by a decrease in the amount of money in circulation relative to the goods and services available in the
economy. It is usually accompanied by a contraction in capital spending and investment.
Français: Déflation
Espa ٌ◌ol: Deflaci َ◌n

Delivered/duty paid, DDP:

A pricing term indicating the maximum obligation of the exporter to deliver the goods and pay the corresponding
duties. The term may be used irrespective of the actual mode of transport. If the parties wish to exclude some charges
(such as value-added tax or other similar taxes) from the exporter's obligations, they should explicitly state so by
adding words to this effect (such as "exclusive of VAT and/or taxes").
Français: Livré / taxe payée
Espa ٌ◌ol: Entregado derechos pagados, DDP

Delivered at frontier:
The exporter fulfils his obligations by delivering the goods at the border of the country of destination, but before the
"customs border", i.e. without undertaking the customs clearance formalities. The term usually applies to goods
transported by rail or road but may be used also in connection with other modes of transport.
Français: Livré à la frontière
Espa ٌ◌ol: Entregada en frontera, DAF
Delivery:
F.O.B. or C.I.F. delivery of the goods.
Français: Livraison
Espa ٌ◌ol: Entrega

Delivery period:
The time required to deliver the exported goods, extending from the signature of the sale contract to the actual delivery
of the merchandise.
Français: Période de livraison
Espa ٌ◌ol: Plazo de entrega

Demand draft:
A payment order payable upon presentation.
Français: Traite à vue
Espa ٌ◌ol: Giro a la vista

Demand line of credit:

A line of credit arranged by a bank, enabling its clients to borrow on a daily or an on-demand basis.
Français: Ligne de crédit à vue
Espa ٌ◌ol: L‫ي‬nea de crédito a la vista

Demurrage:
The extra time required to load or unload a vessel, as compared with that specified in the contract. The term refers
only to those situations in which the charterer or shipper, rather than the vessel's operator, is at fault.
Français: Surestarie
Espa ٌ◌ol: Sobrestad‫ي‬a, gastos de sobrestad‫ي‬a, detenci َ◌n en muelle

Dependency:
The term may be used to indicate the condition of a country which relies excessively on the sale of one primary
commodity and/or is too dependent on another country as a customer and supplier.
Français: Dépendance
Espa ٌ◌ol: Dependencia

Deposit of estimated duties:

In an Antidumping procedure, the term indicates the duties to be collected on imported merchandise found to be
subject to Dumping.
Français: Dépôt de taxes estimées
Espa ٌ◌ol: Consignaci َ◌n de aranceles estimados
Deposits:
On the balance sheet of a company, the funds accepted from customers or banks are generally indicated as deposits.
See also: Receivables, Advances and loans.
Français: Dépôts
Espa ٌ◌ol: Dep َ◌sitos

Depreciation:
(1) In financial markets, the decrease in the value of an asset due either to real factors (i.e. the worsening of its
revenue prospects) or often simply to fear.
(2) In accounting, the amount allocated each period to Amortize the book value of fixed assets.
(3) On the foreign exchange markets, the decrease in the market value of a currency, where this decrease has taken
place without any intervention by the country's monetary authorities. Compare with Devaluation.
Français: Dépréciation
Espa ٌ◌ol: Depreciaci َ◌n, amortizaci َ◌n

Depression:
A long-lasting recession in economic activity.
Français: Dépression
Espa ٌ◌ol: Depresi َ◌n, crisis econ َ◌mica

Deregulation:
The removal of government control on the conduct of economic activity in a particular sector, typically taking the form
of rules or price controls. It implies that market forces take effect without any government restrictions.
Français: Déréglementation
Espa ٌ◌ol: Desreglamentaci َ◌n, liberalizaci َ◌n

Derivatives:
Securities contracts whose prices are based on the price of an underlying asset (such as goods, securities, foreign
currency, etc.) already quoted on the market; e.g. Futures, Options.
Français: Dérivés
Espa ٌ◌ol: Derivado

Devaluation:
The official decision by a country’s monetary authorities to reduce the value of the domestic currency in relation to
foreign currencies, i.e. to reduce the foreign currency equivalent of the domestic currency. e.g. if the U.S. dollar is
devalued in relation to the French franc, one dollar will "buy" fewer francs than before. Opposite: Revaluation.
Compare with Depreciation.
Français: Dévaluation
Espa ٌ◌ol: Devaluaci َ◌n

Development Bank:
A lending agency which provides financial assistance for the promotion of a country’s industrial and trade activity.
Development banks are typically active in developing countries.
Français: Banque de développement
Espa ٌ◌ol: Banco de desarrollo

Development carve-out:
A portion of the product payment estimated to cover the development costs (intangible expenses) of an oil or gas well
or mine.
Français: Développement "carve-out
Espa ٌ◌ol: Desarrollo indirecto

Development carve-out loan:

A loan secured by a Development carve-out.
Français: Prêt de développement "carve-out
Espa ٌ◌ol: Préstamos para dsarrollos indirectos

Development Finance Institutions (DFIs):

DFIs are set up to support the undertaking of industrial and development projects through the extension of long-term
loans on more favourable conditions than those offered by commercial banks. DFIs are usually also willing to take
greater risks than commercial banks. They include Development banks and industrial finance corporations.
Français: Institutions pour le développement financier
Espa ٌ◌ol: Instituci َ◌n de financiaci َ◌n del desarrollo, banco de fomento

Direct costs:
The term refers to costs which can be directly related to the production of particular units or lines of products. They
include the wages of the personnel and the cost of inputs used in the manufacture of such products.
Français: Coûts directs
Espa ٌ◌ol: Costos directos, costo neto

Direct Credit:
A financing arrangement (buyer or supplier) provided directly by an ECA to the importer or exporter as borrower.
Français: Crédit direct
Espa ٌ◌ol: Crédito directo

Direct lease:
A lease in which the lessor purchases new equipment from the manufacturer and leases it to the lessee.
Français: Bail direct
Espa ٌ◌ol: Contrato de arrendamiento directo
Direct payment:
Payments owed by the buyer which must be settled in cash during the contractual period, not being eligible for
financing under a buyers or suppliers' credit.
Français: Paiement direct
Espa ٌ◌ol: Pago directo

Direct quote:
In foreign exchange operations, the number of units of the domestic currency required to buy one unit of a foreign
currency. Compare with Indirect quote. See also Quoted currency.
Français: Cotation directe
Espa ٌ◌ol: Cotizaci َ◌n directa

Direct yield:
See Yield.
Français: Rendement direct
Espa ٌ◌ol: Rendimiento directo

Dirty float:
A system of floating exchange rates where the domestic monetary authorities occasionally intervene to manage and
control the exchange rate by buying or selling domestic currency against foreign Reserve currencies. In a Clean float,
no intervention is used.
Français: Fluctuations contrôlée
Espa ٌ◌ol: Flotaci َ◌n sucia, flotaci َ◌n impura, flotaci َ◌n manipulada

Disagio:
In the securities market, a situation where the market price of a security is lower than its nominal or par value. In
foreign exchange operations, the discount charged for exchanging a depreciated foreign currency or for exchanging
abraded or used coins. Opposite: Agio.
Français: Disagio
Espa ٌ◌ol: Desagio

Disbursement:
A term used in accounting and finance to indicate the actual cash disbursements.
Français: Déboursement
Espa ٌ◌ol: Desembolso

Discount:
(1) In commercial trade, a rebate in the selling price of goods or services, usually made by deducting a certain
percentage from the quoted price.
(2) In finance, the deduction from the face value of Commercial paper such as a Bill of exchange or acceptance, in
exchange for the option of receiving the relative cash payment before the maturity of the paper. By purchasing at a
discount, the buyer of the commercial paper is compensated for the loss of interest on the funds up to the paper’s
maturity.
(3) When referring to the selling price of a bond or other security, this indicates a market price below its par value.
(4) In accounting, the calculation of the present value of a stream of future Cash flows. It is the opposite of
Compounding.
(5) In foreign exchange trading, a foreign currency sells at a discount on the forward market when the forward rate is
lower than the spot rate (assuming that the domestic currency is quoted on a direct basis), i.e. that it is cheaper to buy
the foreign currency forward rather than spot.
Français: Escompte
Espa ٌ◌ol: Descuento

Discount credit:
A credit by a bank for the provision of funds when the client presents a Bill of exchange or similar Commercial paper
for discounting.
Français: Crédit escompte
Espa ٌ◌ol: L‫ي‬nea de descuento

Discount rate:
(1) The interest rate at which a bank or other lender agrees to make advance payments to the holder of a bill of
Exchange or other Commercial paper, i.e. the deduction from its face value practised by the bank. It is thus a charge
on the person or company seeking to discount his bills, and depends on the time left until the maturity of the
instrument, the liquidity of the financial markets, etc.
(2) The interest rate at which a country’s Central Bank lends to commercial banks, when these are temporarily short of
funds. Commercial banks need to pledge government and other first-class debt instruments as collateral to borrow
from their Central Bank. Such borrowings are of a short-term nature as they are meant to meet the short-term liquidity
needs of commercial banks.
Français: Taux d'escompte
Espa ٌ◌ol: Tipo de descuento

Discount window:
A facility offered by a county’s Central Bank by which commercial banks may borrow short-term (at the Discount rate),
for instance in order to adjust to sudden changes in their assets and liabilities portfolio.
Français: Facilité d'escompte
Espa ٌ◌ol: Servicio de redescuento

Discounted cash flow:

The present value of future Cash flows, taking into account the timing of the future stream of payments. Take an
example of an anticipated cash flow of £100. Its present value is lower, as it could be invested and earn interest. If a
current investment of £92 is worth £100 by the end of the year, the discounted cash flow value of the anticipated £100
would be £92. Discounted cash flows are used when comparing alternative investment options, entailing different
payment and revenue time structures. See also Capitalized value.
Français: Flux de trésorerie escomptés
Espa ٌ◌ol: Flujo de efectivo actualizado
Dishonour:
Refusal on the part of the drawee to accept a draft or to pay it when due.
Français: Ne pas honorer
Espa ٌ◌ol: Falta de pago, falta de aceptaci َ◌n

Disintermediation:
The process of excluding banks and other financial institutions from the collection and allocation of financial resources
in the economy. Disintermediation may take different forms, for example the decision of companies to rely on bond
and Equity issues rather than on bank loans to finance their activities.
Français: Désintermédiation
Espa ٌ◌ol: Desintermediaci َ◌n

Dispatch:
An amount paid by a vessel's operator to a charterer, if the loading or unloading of the vessel is completed more
quickly than was stipulated in the charter agreement.
Français: Prime de rapidité
Espa ٌ◌ol: Prima de celeridad, prima por pronta carga y descarga

Disposable income:
Income (cash) after tax.
Français: Revenu disponible
Espa ٌ◌ol: Ingresos disponibles

Distributor:
An Agent who sells directly on behalf of and according to the instructions of the supplier and maintains an inventory of
the latter's products.
Français: Distributeur
Espa ٌ◌ol: Distribuidor

Diversification:
The practice of dividing financial resources among a variety of investments with different risks, reward, maturity etc. in
order to minimise the overall risk.
Français: Diversification
Espa ٌ◌ol: Diversificaci َ◌n

Diversionary dumping:
A practice by which a foreign producer sells to a third-country at a price lower than the fair value and the product is
then further processed and shipped to another country. See also Dumping.
Français: Dumping de diversion
Espa ٌ◌ol: Dumping indirecto
Divestment:
A reduction in the amount of current investment, sometimes through the sale of assets.
Français: Désinvestissement
Espa ٌ◌ol: Desinversi َ◌n

Dividend:
A portion of the profit of a limited liability company (corporation) paid out to its shareholders. From the shareholders'
point of view, it is the return on their investment in the company’s stock. A stock sold for 20US$ a share with an annual
dividend of 1US$ a share, yields the investor 5%. The rate of dividend is determined at the General Meeting on the
proposal of the Board of Directors.
Français: Dividende
Espa ٌ◌ol: Dividendo

Dividend cover:
The ratio of profits distributed as dividends to total profits. It gives an indication of the company’s dividend policy and
on the likely distribution of future dividend payments.
Français: Couverture du dividende
Espa ٌ◌ol: Cobertura de dividendos

Dividend yield:
This indicates the expected return on the purchase a particular share. It is calculated by dividing the last total annual
dividend payment per share by the share’s market price.
Français: Rendement du dividende
Espa ٌ◌ol: Rentabilidad del dividendo

Dock receipt:
A receipt issued by the ocean carrier upon the handing over of the merchandise at the port of embarkation for
shipment.
Français: Reçu de dock
Espa ٌ◌ol: Recibo provisional de mercanc‫ي‬as entregadas sobre muelle

Documentary acceptance credit:

An acceptance credit used for import or export financing, usually secured by an irrevocable documentary credit issued
by the buyer's bank.
Français: Crédit d'acceptation documentaire
Espa ٌ◌ol: Crédito documentario de aceptaci َ◌n

Documentary collection:
An international payment technique allowing each party to retain key elements of control and increasing the level of
security of the transaction, even in the absence of a Letter of credit. The importer is not required to pay the exporter
before the merchandise ordered is shipped, while the exporter is able to retain title to the goods until the importer
either pays the draft (Document against Payment, D/P) or accepts it (Document against Acceptance, D/A). In both
cases the bank acts only as an agent for the exporter, regulating the timing of the transaction and seeking payment
from the overseas buyer/importer. The basis of execution of documentary collections is provided by the Uniform Rules
for Collections (URC) drafted by the International Chamber of Commerce in Paris.
Français: Encaissement documentaire
Espa ٌ◌ol: Cobro de créditos documentarios

Documentary Credit:
A commercial letter of credit authorising the bank to pay a designated beneficiary (typically the seller/exporter of
goods) against presentation of the documents specified in the Letter of credit.
Français: Crédit documentaire
Espa ٌ◌ol: Crédito documentario

Documentary draft:
A term indicating the draft drawn by the seller on the buyer relating to a Documentary collection. If the draft contains
the notation Documents against acceptance, the documents giving title to the goods are handed over upon
acceptance of the draft by the buyer. If it is marked Documents against Payment, they are handed over only after
payment.
Français: Traite documentaire
Espa ٌ◌ol: Giro documentario

Documentary letter of credit:

See Letter of credit.
Français: Lettre de crédit documentaire
Espa ٌ◌ol: Carta de crédito documentario

Documented discount notes:

A Commercial paper backed not only by normal bank lines, but also by a Letter of credit from a bank stating that it will
pay the paper at maturity if the borrower does not honour it. Such a paper is also referred to as a letter of credit paper.
Français: Bordereau d'escompte documenté
Espa ٌ◌ol: Pagaré de descuento documentario

Documents:
This refers to papers attached to drafts issued in international trade transactions which usually include an ocean Bill of
lading, Marine insurance certificates and commercial Invoices and, when required, Certificates of origin and Consular
documents.
Français: Documents
Espa ٌ◌ol: Documentos
Documents against acceptance (D/A):
A notation on a draft issue in an export transaction stating that the documents attached to the draft and giving title to
the shipped goods should be handed to the buyer (drawee) only upon his acceptance of the draft.
Français: Documents contre acceptation
Espa ٌ◌ol: Documentos contra aceptaci َ◌n

Documents against payment(D/P):

A notation on a draft issued in an export transaction stating that the documents attached to the draft and giving title to
goods should be handed to the buyer (drawee) only against payment of the draft.
Français: Documents contre paiement
Espa ٌ◌ol: Documentos contra pago

Domestic issue:
Loan stock or equity raised on the capital market of the country of issue and expressed in its domestic currency, such
as US dollars raised in the USA, Dutch florins raised in Holland.
Français: Emission domestique
Espa ٌ◌ol: Emisi َ◌n local, emisi َ◌n interna

Domiciles:
The place where a draft or acceptance is due for payment.
Français: Domicile(s)
Espa ٌ◌ol: Domicilio

Dow Jones index:

The share index showing movements on the New York Stock Exchange. The most widely known NYSE index is the
Dow Jones industrial average, based on thirty leading stocks in US industry and other sectors of the economy. A
similar index in the United Kingdom is the Financial Times Industrial Ordinary index.
Français: Indice Dow Jones
Espa ٌ◌ol: Indice Dow Jones

Down payment:
An advance cash payment from the buyer to the supplier before the entry into force of the contract. It is sometimes
known as an initial direct payment. Downpayments on exports are usually ineligible for ECA support.
Français: Acompte
Espa ٌ◌ol: Pago inicial, dep َ◌sito inicial, pago de entrada

Downpayments/progress payment bond or guarantee:

A bond or guarantee, issued by a bank to the buyer, whereby the bank undertakes to reimburse him (usually on
demand) for the downpayments or progress payments already made in case of
failure by the supplier to complete the contract.
Français: Acomptes/Obligation ou garantie de paiement relative à l’avancement
Espa ٌ◌ol: Bono de pago inicial, bono de pago a cuenta, bono de pago parcial

Downstream dumping:
The practice whereby a foreign producer sells at below cost to another producer within his domestic market, and the
product is then further processed and shipped to another country. See also Dumping.
Français: Dumping en aval
Espa ٌ◌ol: Dumping en el proceso de comercializaci َ◌n, dumping posterior, dumping en fases posteriores al proceso de
protecci َ◌n

Downturn; Slump:
A general and marked decline in asset prices or currency rates. Opposite: Boom.
Français: Effondrement
Espa ٌ◌ol: Descenso, depresi َ◌n, crisis econ َ◌mica, baja repentina

Draft:
Another word for Bill of exchange. It is a written, unconditional payment order from one person (drawee) to another
(Drawer), under which the drawee is to pay a specified sum of money, in a given currency and on a specified date, to
the drawer. A sight draft calls for immediate payment (i.e. on sight), while a time draft calls for payments at a
predetermined future date.
Français: Traite
Espa ٌ◌ol: Draft

Drawback:
The refund of duties paid on imported goods, provided at the time of their re-exportation. See duty.
Français: Remboursement
Espa ٌ◌ol: Reintegro de los derechos de aduana, devoluci َ◌n de los derechos de importaci َ◌n

Drawdown period:
Under a loan or credit agreement, this is the specified period during which the funds may be drawn.
Français: Période de tirage
Espa ٌ◌ol: Per‫ي‬odo de giro

Drawee:
In general, this indicates the individual or firm on whom a draft is drawn and who owes the indicated amount. In an
international trade transaction, the drawee may be:
(1) The person or firm to whom a draft/bill of exchange is addressed and who is expected to accept it and pay it on
maturity (i.e., the importer).
(2) The bank on which the cheque was drawn and which cashes the cheque to the debit of the drawee if the necessary
cover is available.
Français: Tiré
Espa ٌ◌ol: Librado

Drawer:
The individual, or firm, who issues or signs a Draft/bill of exchange, thus standing as the beneficiary of the indicated
payment from the drawee.
Français: Tireur
Espa ٌ◌ol: Librador

Drawings:
Borrowings from the IMF reserves are sometimes referred to as drawings. See also Special Drawing Rights.
Français: Tirages
Espa ٌ◌ol: Préstamo

Drawn bond:
A Redeemable Bearer bond which has been drawn, i.e. selected for repayment, and which the holder should return to
a specified paying agent, or to the issuer, for payment.
Français: Obligation tirée
Espa ٌ◌ol: Bono girado

Drop ship:
A shipment by a foreign shipper directly to the domestic customer. The quoted price includes freight and postage.
Français: Drop ship
Espa ٌ◌ol: Embarque entregado

D/P:
Abbreviation for Documents against payment.
Français: D/P
Espa ٌ◌ol: D/P

Dual pricing:
The selling of identical products in different markets at different prices. This may in some cases reflect Dumping
practices.
Français: Double cotation
Espa ٌ◌ol: Dualidad de precios, doble precio, sistema de doble precio, régimen de precios dobles

Due date; Maturity date:

The date on which a debt (such as a bill of Exchange , Note, Coupon, etc.) becomes due for payment. If the debtor
fails to undertake the payment on the due date he is said to be in Default.
Français: Date d’échéance
Espa ٌ◌ol: Fecha de vencimiento (del plazo), fecha de cumplimiento

Dumping:
The sale of goods in a foreign market at less then their fair value, generally implying at below their cost of production.
Dumping is generally recognized as unfair as it may disrupt markets and harm the producers of competing products
within the importing country.
Français: Dumping
Espa ٌ◌ol: Dumping

Duration; term:
(1) The period of time between the date of issue of a Debenture and that of its repayment
(2) The time during which a loan or credit is granted, also known as its maturity or life.
Français: Durée, terme
Espa ٌ◌ol: Duraci َ◌n, plazo

Duty:
A tax imposed by the customs authority of a country on imported goods.
(1) Ad valorem duty: a duty calculated on the monetary value of the imported goods.
(2) Specific duty: a duty calculated on the weight or quantity of imported goods, without any reference to their
monetary value or market price.
(3) Compound duty: a duty based on the combination of the goods’ monetary value and other factors.
(4) Drawback: the total or partial refund of a duty paid on imported merchandise at the time of re-exportation, where
the exported goods may have the same form or a different form than at the time of import.
Français: Taxe
Espa ٌ◌ol: Derechos de aduana
E
Earning per share:
This measures a company's total net return earned on ordinary share capital. It is calculated by deducting taxation,
depreciation, interest charges and payments to preference shareholders and other minority interests from gross
income. The result is then divided by the number of ordinary shares.
Français: Bénéfice par action
Español: Utilidades por acción, ingresos por acción

Earning power:
This refers to a company’s profitability, i.e. its capacity to return a profit or income. It is measured in terms of the profit
generated during a certain period of time in relation to the capital employed. More narrowly defined, it is represented
by the ratio between the net profit generated and the capital resources employed.
Français: Capacité bénéficiaire
Español: Rentabilidad

Earnings:
A technical accounting term, referring to the amount of profit (usually for a year) available to the ordinary shareholders
(UK) /common stockholders (US), i.e. the profit available once all expenses (operating expenses, interest charges,
taxes and dividends on preferred stock) have been deducted from the gross revenue. The term earnings is sometimes
used to describe income, net income, profit or net profit.
Français: Bénéfices, Gains
Español: Ganancias, beneficios, utilidades, ingresos

Earnings yield:
Earnings per share divided by stock price.
Français: Rendement du bénéfice
Español: Dividendo por acción

ECA:
Abbreviation for Export Credit Agency.
Français: ACE
Español: ECA

E-commerce:
Electronic commerce can be both:
(1) the on-line ordering, payment and delivery of intangible goods and services (Direct e-commerce);
(2) the electronic ordering of tangible goods, which must still be physically delivered, using traditional channels such as
postal services or commercial couriers. Payment is made either physically or electronically (Indirect e-commerce).
Français: Commerce électronique
Español: Comercio electrónico
Economic growth:
The increase in a country’s output of goods and services, i.e. a larger GNP, during a period of time. When economic
growth exceeds population growth, the country's living standards should rise. Such a development is generally due to
better utilization of the country's economic resources.
Français: Croissance économique
Español: Crecimiento económico

ECP:
Abbreviation for Eurocommercial paper.
Français: ECP
Español: ECP

ECU:
Abbreviation for European Currency Unit.
Français: UME
Español: ECU

ECU bonds:
Eurobonds denominated in ECUs.
Français: Obligations en ECU
Español: ECU bonds

ECU notes:
Euronotes denominated in ECUs.
Français: Eurodettes
Español: ECU notes

EFT:
Abbreviation for Electronic Funds Transfer.
Français: EFT
Español: EFT

Effective Yield:
See Yield.
Français: Rendement effectif
Español: Rendimiento efectivo
Electronic banking:
Refers to the provision of retail and small value banking products and services through electronic channels. Two
fundamental aspects of electronic banking are:
(1) the nature of the delivery channels - "closed networks" which restrict access to members, and "open networks"
which have no membership requirements;
(2) the means of customer access to these channels - including point-of-sale (POS) terminals, automatic teller
machines (ATM), telephones, personal computers, smart cards etc.
Internet banking - also known as e-mail banking or virtual banking - is the latest form of electronic banking. Access to
the service for the customer is provided via personal computers, communicator phones and other devices with access
to the Internet.
Français: Electronique bancaire
Español: Operación bancaria electrónica

Electronic funds transfer:

The transfer of funds, other than a transaction originated by cheque, draft or similar paper instrument, which is initiated
through an electronic terminal, telephonic instrument, computer or magnetic tape, so as to order, instruct or authorize
a financial institution to debit or credit an account.
Français: Transfert électronique de fonds
Español: Transferencia electrónica de fondos

Electronic money:
Refers to "stored value" or prepaid payment mechanisms for executing payments via point-of-sale (POS) terminals,
direct transfers between two devices or over open computer networks such as the Internet. Stored value cards can be
"single-purpose" cards, used to purchase one type of goods or service or products from one vendor, or "multi-purpose"
cards, used for a variety of purchases from several vendors.
Français: Monnaie électronique
Español: Dinero electrónico

Endorsee:
The person or corporate body to whom the title and/or rights of a negotiable instrument are transferred from the
endorser, by means of the latter's signature.
Français: Endossataire
Español: Endosatario, portador, tenedor por endoso

Endorsement:
The only method recognized in commercial law of transferring title and/or rights on a negotiable instrument. The
transfer is achieved by writing one's name on the instrument, usually on the reverse. The signature must be
accompanied by conditional or restrictive wording and constitutes a contract between the holder and all parties to such
an instrument.
Français: Endossement
Español: Endoso

Endorser:
The person or corporate body, with title and/or rights to a negotiable instrument, who writes his name on it in order to
transfer the said title or rights to another person or body.
Français: Endosseur
Español: Endosante, cedente

Endowment capital:
Seed or start up capital made available to either a public or private company, by the government or by the company’s
holding company respectively.
Français: Dotation en capital
Español: Dotación de capital

EPC contract:
A contractual agreement between the client (i.e. the owning company which has issued the contract) and the
contractor, which outlines the terms of the contractor's responsibility for the Engineering, Procurement and
Construction (EPC) activities linked to the project.
Français: Contract EPC
Español: Contrato de ingeniería, adquisición y construcción

Equivalent bond yield:

The annual yield on a short-term, non-interest-bearing security calculated so as to be comparable with yields on
coupon securities.
Français: Rendement obligataire équivalent
Español: Rendimiento equivalente al de los bonos

Equity:
The part of a company's capital belonging to its shareholders. In accounting terms, equity is what is left when all the
company's liabilities have been deducted from its assets, except for those liabilities due to shareholders. The value of
equity of a quoted company corresponds to the price per share multiplied by the number of shares.
Français: Actif net
Español: Participación de beneficios

Escrow accounts:
Accounts held in Offshore banks, outside the country of a debtor, through which a portion of his export revenues are
channelled in order to cover future debt-service payments. The beneficiaries of the escrow accounts are the creditors
who will obtain extra security for their loans and priority in debt service.
Français: Comptes de dépôt
Español: Cuenta de garantía bloqueada, cuenta de depósito en garantía

Euro:
A new currency introduced 1 January 1999 between 11 member states of the European Union (Italy, France,
Germany, Spain, Portugal, Austria, Finland, Belgium, Luxembourg and The Netherlands) as the final step in the
process leading to full Economic and Monetary Union (EMU) within the EU. The Euro will gradually replace the use of
the national currencies and will become the only currency in circulation within the EU by 1 July 2002. The parity Euro-
ECU has been set at one-to-one.
Français: Euro
Español: Euro

Euro Lines:
Lines of credit granted by international banks in Eurocurrencies.
Français: Lignes of credit
Español: Eurolíneas

Eurobond:
A Bond issued by a company or a government in a market other than that of its currency of denomination. Eurobonds
are then sold internationally and not in just one domestic market (e.g. a German corporation may issue euro-dollar
bonds on the London capital market). The main eurobonds include the Eurodeutsche Mark bonds, Eurodollar bonds,
Eurofrench Franc bonds, Eurosterling bonds and Euroyen bonds, although the nationally denominated European
eurobonds will be phased out within Europe.
Français: Euro-obligation
Español: Eurobono

Eurocapital market:
The section of the Euromarkets where transactions with medium- to long-term maturities are conducted, mainly in the
form of Eurobond
Français: Marché des Euro-capitaux
Español: Euromercado de capitales

EuroCDs (Certificate of deposit):

CDs issued by a non resident bank in a Euro currency
Français: EuroCD (certificat de Dépôt)
Español: Eurocertificado de depósito

Eurocommercial paper:
Abbreviated as ECP or Euro-CP. It indicates short-term money market paper issued by major first-class companies on
the Euromarket, usually without necessarily being underwritten by the lead issuing bank.
Français: Euro-effet commercial
Español: Efecto comercial en eurodivisas

Eurocredit:
An international bank credit denominated in a Eurocurrency, i.e. denominated in a currency other than the domestic
currency of the bank granting the loan. Eurocredits may be provided to governments and corporations and usually
have a variable interest rate charge, which is adjusted every few months. Large loans are handled by syndicates of
banks.
Français: Eurocrédit
Español: Eurocrédito

Eurocurrency:
A currency which is banked outside its country of origin. The main Eurocurrencies include the Eurodollar, the Euro-FF,
the Euro-DM, the Euro-£, the Euro-guilder, etc.
Français: Euromonnaie
Español: Eurodivisa

Eurocurrency market:
A money market, based mainly in Europe, engaged in the lending and borrowing of Eurocurrencies to finance
international trade and investment projects. The main financial instrument used in the Eurocurrency market for long-
term investment purposes is the Eurobond. Depositors in the Eurocurrency market include commercial banks,
industrial companies and Central Banks. Borrowers are typically companies, which resorted to Eurofinance during
times of domestic credit restrictions and/or when domestic interest rates were higher than those prevailing in the
Eurocurrency market.
Français: Marché des Euromonnaies
Español: Mercado de eurodivisas

Eurodollars:
U.S. Dollar-denominated deposits held in banks and other financial institutions outside the United States. Although the
majority of such deposits are held in Western Europe (thus leading to the "Euro" denomination), they are not limited to
this area.
Français: Eurodollars
Español: Eurodólar

Eurodollar bonds:
Eurobonds denominated in dollars.
Français: Obligations en Eurodollar
Español: Eurodollar bonds

Euroequity market:
The market for shares sold outside of their country of origin.
Français: Marché des Euro-actions
Español: Mercado de euroacciones

Euromarket:
An international financial market consisting of several specialized markets (such as the Eurobond and the
Eurocurrency markets) on which bank loans and bond issues are transacted in Eurocurrencies. Although its name
refers to Europe, the Euromarket is by no means confined to it geographically but is organized world-wide.
Français: Euromarché
Español: Euromercado
Euromoney market:
The part of the Euromarket where transactions involving short- to medium-term placements (i.e. not exceeding 18
months) are conducted, primarily in the form of time deposits.
Français: Euromarché de l’argent
Español: Euromercado del dinero

Euronotes:
Medium-term notes issued on the Euromoney market.
Français: Europapier
Español: Europagaré

European Bank for Reconstruction and Development (EBRD):

A London based financial institution which began its operations in June 1991. It provides financial assistance to
facilitate the transition to market economies and to promote private and entrepreneurial initiatives in Central and
Eastern Europe.
Français: Banque Européenne pour la Reconstruction et le Développement
Español: Banco Europeo de Reconstrucción y Desarrollo

European Currency Unit (ECU):

This was introduced in 1979 with the coming into effect of the European Monetary System (EMS). The ECU is based
on a basket of European currencies and its value is equal to the sum of the values of the EC currencies included in the
reference basket.
Français: Unité Monétaire Européenne
Español: Unidad Monetaria Europea

European Free Trade Association (EFTA):

A regional organization, established in December 1960 by the Stockholm Convention as an alternative to the
European Economic Community, designed to provide a free trade area for industrial products among member
countries. Unlike the EEC, however, EFTA members did not set up a common external tariff and did not fully liberalise
agricultural trade. EFTA currently has four members: Iceland, Liechtenstein, Norway and Switzerland. Other members
such as the U.K., Denmark, Portugal, Sweden, Finland and Austria left EFTA when they joined the EC.
Français: Association Européenne de Libre Echange (AELE)
Español: Asociación Europea de Libre Comercio

European Investment Bank (EIB):

An independent public institution set up by the Treaty of Rome of 1957 with the mission of contributing to the steady
and balanced development of the European Union (EU). The members of the EIB are the EU Member States, who
have all subscribed to the Bank's capital. The EIB provides companies and public institutions with long-term finance for
specific capital projects; typically regional and structural development projects with cross-border effects. The EIB
collaborates closely with the banking community, both when borrowing on the capital markets and when financing
capital projects. It also undertakes activities outside the European Union, either out of its own resources or under
mandate of the EU or the Member States.
Français: Banque Européenne d’Investissement (BEI)
Español: Banco Europeo de Inversión (BEI)

European Monetary System (EMS):

A co-operative foreign exchange arrangement set up in 1979 and involving most of the members of the European
Community, designed to promote exchange rate stability within the EC. By requiring participants to maintain their
exchange rates within set fluctuation margins, the EMS was intended to move Europe toward closer economic
integration and to avoid disruption to trade resulting from excessive exchange rate swings.
Français: Système monétaire européen (SME)
Español: Sistema Monetario Europeo (SME)

European Monetary Union (EMU):

The final stage of the process of macro-economic integration at the European Union level. European countries
participating in the EMU are required to hand over the conduct of their monetary policy to a single European Central
Bank and to respect stringent guidelines on government spending (the so called Stability Pact). The most apparent
aspect of the EMU is the introduction and gradual switchover to a single currency, the Euro.
Français: Union monétaire européenne (UME)
Español: Unión Monetaria Europea (UME)

European option:
An option which can only be exercised at its expiry date. Compare with an American option.
Français: Option européenne
Español: Opción europea

European terms:
The quotation of a foreign currency on an indirect basis. See also indirect quote.
Français: Termes européens
Español: Términos europeos

Euro-Treasuries:
A security on the Eurobond market entitling the holder to buy a particular US Treasury bond at a fixed price, at any
point within a given period of time.
Français: Euro Bons du Trésor
Español: Eurobonos de tesorería

Exchange:
The marketplace within which shares, options and futures on stocks, bonds, commodities and indices are traded.
Some of the main world exchanges include the New York Stock Exchange (NYSE), the National Association of
Securities Dealers Automatic Quotation System (NASDAQ), the LIFFE, etc.
Français: Echange
Español: Bolsa, bolsa de valores
Exchange permit:
A government permit sometimes required in order to convert domestic currency into a foreign currency, for payment of
international transactions.
Français: Permis de change
Español: Permiso de cambio de divisas

Exchange controls:
Restrictions applied by a government (or the Central Bank) to limit the convertibility of the local currency into foreign
currencies.
Français: Contrôle des changes
Español: Control de cambios, control cambiario, intervención de los cambios

Exchange rate:
The price at which one currency can be converted into another. On foreign exchange markets there are two reference
exchange rates: the Bid rate (at which operators are willing to buy the currency in exchange for another) and the asked
rate (at which they are willing to sell the currency against another). Freely traded currencies also have a spot rate for
immediate exchange and a forward rate for exchanges to be carried out at some future date.
Français: Taux de change
Español: Tipo de cambio

Exchange risk coverage:

A general term for financial techniques (such as insurance, swaps, forwards etc.) intended to cover (protect) the
enterprise from adverse variations in the exchange rate (e.g. from the depreciation of the currency of denomination of
a credit).
Français: Couverture du risque de change
Español: Cobertura de los riesgos cambiarios, cobertura de los riesgos de fluctuación de los tipos de cambio

Ex dividend:
i.e. without dividend. A share sold "ex div" does not entitle the purchaser to the forthcoming dividend payment.
Opposite: Cum div.
Français: Ex-dividende
Español: Sin dividendo

Ex:
i.e. "from". When used in pricing terms such as "ex factory" or "ex dock" it indicates that the quoted price refers to the
goods at their point of origin (in the examples, respectively at the seller's factory or the export dock). In practice, this
kind of quotation indicates that the goods are made available to the buyer at a specified place within a fixed period
time.
Français: Ex
Español: Ex
Exercise price:
See Strike price.
Français: Prix d'exercice
Español: Exercise price

EXIMBANK:
See Export-Import Banks.
Français: EXIMBANK
Español: EXIMBANK

Exotics:
Derivatives which are either complex and sophisticated or are available in emerging economies. They contrast with
"plain vanilla" derivatives, which relate to standard commodities in industrialised countries which are relatively simple.
Français: Exotiques
Español: Complejo

Expiration date:
The time when the contract ceases to exist. In the case of a letter of credit, it indicates the last date upon which draft(s)
may be presented for negotiation. When referring to an option this is the last day (on an American basis) or the only
day (on a European basis) on which the option may be exercised.
Français: Date d'échéance
Español: Fecha de vencimiento, fecha de caducidad

Export Administration Regulations:

Regulations which provide specific instructions as to the type of export licenses required, their use and the goods
under export control.
Français: Règlements administratifs d'exportation
Español: Reglamentación para la gestión de las exportaciones

Export Broker:
An individual, or a firm, who brings together international buyers and sellers for a fee, without however taking part in
the actual sales transactions.
Français: Courtier à l'exportation
Español: Agente de exportaciones

Export Control Classification Number (ECCN):

A number assigned to every product on the Commerce Control List. The ECCN consists of a five-character number
which identifies the category, product group, strategic level of control and country group level of control.
Français: Numéro de classification de contrôle à l'exportation
Español: Número de clasificación para el control de las exportaciones

Export credit:
A term covering different export financing facilities ensuring the availability of credit to the exporter at an acceptable
rate of interest. Such facilities are usually intended to meet the exporter's pre/post shipment credit requirements and
include the refinancing of suppliers/buyers' credit.
Français: Crédit à l'exportation
Español: Crédito a la exportación

Export Credit Agency (ECA):

A governmental, semi-governmental or private agency established with the aim of facilitating exports through the
provision of insurance, guarantees and/or funding or funding support.
Français: Agence de crédit à l'exportation
Español: Organismo de crédito a la exportación (OCE)

Export Credit Enhanced Leverage (EXCEL):

A programme developed in 1990 by the World Bank in conjunction with a working group of the International Union of
Credit and Investment Insurers (the Berne Union). The programme’s goal is to provide export credits at Consensus
rates to private sector borrowers in highly indebted countries, which would be a too great a risk for most agencies to
take on.
Français: Export Credit Enhanced Leverage (EXCEL)
Español: Programa de Fomento del Crédito a la Exportación (EXCEL)

Export credit guarantee:

A guarantee issued by a financial institution (frequently a government agency) especially set up to safeguard export-
financing banks against losses resulting from the export transactions they finance. It therefore facilitates exporters'
access to pre/post shipment credit from a banking institution and is thus a powerful incentive to exporting. It should be
noted that export credit guarantees do not involve the actual provision of funds to exporters.
Français: Garantie de crédit à l'exportation
Español: Garantía de crédito a la exportación

Export credit insurance:

A policy to cover some of the riskier areas faced by exporters i.e. non- payment due either to insolvency of the
importer (commercial risk) or political events (political risk). Export credit insurance is frequently mentioned in
connection with export credit guarantees. While guarantees cover bank export loans, insurance policies are issued
directly in favour of the exporters. In many developing countries this type of insurance is either not available or is too
expensive. Several types of export credit insurance are available. These differ from country to country according to the
needs of the local business community. The most widely used types of export credit insurance include the following:
(1) Short-term export credit insurance: generally covers credit periods not exceeding 180 days. Pre-shipment and
post-shipment export stages are covered and protection may be provided against political and commercial risks.
(2) Medium- and long-term export credit insurance: issued for credits extending for periods over 12 months. It provides
cover for exports of capital goods, construction or special services.
(3) Investment insurance: issued to companies investing in foreign countries. The Multilateral Investment Guarantee
Agency (MIGA), affiliated to the World Bank, offers this type of insurance.
(4) External trade insurance: applies to goods not shipped from the originating country. It is not available in a number
of developing countries.
(5) Exchange risk insurance: covers losses arising from the fluctuation of the respective exchange rates of the
importer's and exporter's national currencies over a determined period of time.
Français: Garantie de crédit à l'exportation; Assurance de crédit à l'exportation
Español: Seguro de crédito a la exportación

Export credit linked swaps:

The difference between the market interest rates of a specific currency and the minimum interest matrix rates
prescribed under the OECD's Arrangement on Guidelines for Officially Supported Export Credits (the Consensus) may
be used to reduce the costs of financing a transaction. The currency usually used for such export credits is the dollar.
Under this technique, the export credit is extended in the normal way and the official agency subsidizes it, to bring the
cost of credit into line with the Consensus minima. In a separate transaction, a swap is arranged to transfer the
subsidy element from the dollar credit into another currency and thus reduce the cost of funds to the borrower. The
differential between the Consensus rates and market rates will determine the reduction in the costs of financing.
Français: Swaps liés à des crédits à l'exportation
Español: Swap para crédito a la exportación

Export declaration:
Also known as the shipper's export declaration (SED), this is a document describing the complete particulars of a
specific shipment. It is required by the Department of Commerce in order to control exports and for statistical
purposes.
Français: Déclaration d'exportation
Español: Declaración de expedición del cargador

Export financing:
The extension to exporters of the funds required to carry out the export of merchandise or for the rendering of
services, such as construction, engineering and development projects in a foreign country. Export financing usually
takes the form of a bank credit granted directly to the exporter or of a credit extended to foreign importer. An important
role in short-term export financing is played by documentary credit.
Français: Financement à l'exportation
Español: Financiación de exportaciones

Export-Import banks (EXIMBANKS):

These are banks specialised in lending to support international trade transactions. They are created to support the
development of exports and to satisfy the financial needs of exporters and importers, as well as of investors in foreign
markets. This is achieved by supplementing and fostering the financing of their country's foreign trade by commercial
banks and other private institutions. Eximbanks offer four major export finance support programmes: loans (pre-
shipment and post-shipment financing), guarantees, working capital guarantees and insurance. The Export-Import
bank of the United States is the ECA of the United States.
Français: Banques d'export-import
Español: Banco de exportación e importación
Export license:
A government document allowing the "licensee" to engage in the export of specific goods in determined quantities to a
particular destination. Some countries may require this document for most or all exports, while others will ask for it only
under special circumstances.
Français: Licence d'exportation
Español: Licencia de exportación

Export Management Company (EMC):

A private firm which buys merchandise from domestic manufacturers for international distribution or which sometimes
acts as an agent for manufacturers. It may act as the export department for many different manufacturers, soliciting
and transacting export business on their behalf in return for a commission, salary or retainer.
Français: Société de gestion des exportations
Español: Compañía de gestión de exportaciones

Export merchant:
A company which buys products directly from the manufacturers and then packages and adds its brand to them, for
resale under its own name.
Français: Exportateur
Español: Negociante exportador

Export oriented strategy:

An economic strategy assigning a key role to the production of goods for export as a means of encouraging the
development of the domestic industry. Compare with import substitution.
Français: Stratégie orientée à l'exportation
Español: Export oriented strategy

Export Processing Zone (EPZ):

Industrial parks, designated by a government to provide tax and other incentives to firms, located within the parks,
which manufacture exclusively for the export market.
Français: Zones de traitement des exportations
Español: Zona franca industrial, zona de elaboración (de productos) para la exportación

Export quotas:
Restrictions or target objectives imposed by the government of the exporting country on the value or volume of exports
of specified goods. Such restrictions may be intended to protect domestic producers and consumers from temporary
shortages of certain materials, or as a means of moderating world prices of specified commodities.
Français: Quotas à l'export
Español: Continente de exportación

Export risk guarantee:

A safeguard against potential claims arising from export operations.
Français: Garantie de risque à l'exportation
Español: Garantía contra los riesgos de exportación

Export subsidies:
These usually take the form of direct government payments or other economic incentives to domestic producers of
goods sold on foreign markets. The General Agreement on Tariffs and Trade (GATT) has imposed restrictions on the
extension of such subsidies, in view of their potential to distort trade, unduly disturb normal commercial competition
and hinder the achievement of the GATT fair trade objectives.
Français: Subventions à l'exportation
Español: Subvenciones a la exportación

Export tariff:
A tax on goods exported from a country.
Français: Tarif d'exportation
Español: Derechos de exportación, arancel de exportación

Export trading company:

A company which is legally allowed to become involved in international trade.
Français: Société commerciale d'exportation
Español: Sociedad exportadora

Exposure:
The total amount of outstanding credit owed by a borrower or a country.
Français: Encours
Español: Préstamos pendientes

(Country) exposure:
the amount of outstanding credit extended towards a specific country by a bank, group of banks or export credit
agencies, including commitments, arrears and unrecovered claims. It is thus a measure of the possible total financial
cost to the agency in case of default by the borrowing country.
Français: Encours d'un pays
Español: Préstamos pendientes por país

Expropriation risk:
See Political risk.
Français: Risque d’expropriation
Español: Riesgo de expropiación

Extended fund facilities:

A special fund of the International Monetary Fund (IMF), available to assist members who need to undertake structural
adjustments programmes. The facilities take the form of medium-term loans and are granted to countries qualifying for
support. These countries may draw from the facility in tranches, where the availability of each tranche depends on the
achievement of certain economic targets agreed in advance with the IMF.
Français: Facilités de financement étendues
Español: Servicio ampliado del Fondo

Extension:
An additional period which may be granted by the drawer for payment of a draft when the drawee is unable or unwilling
to make the due payment at the agreed maturity date.
Français: Prolongation
Español: Prórroga, prolongación

Ex works (EXW):
This stands for "at a named point of origin" (e.g. ex factory, ex mill, ex warehouse). Under this term, the quoted price
refers to the goods at the point of origin only and the seller agrees to place the goods at the disposal of the buyer at
the specified place, on the date or within the period fixed. All other charges are to the account of the buyer.
Français: Ex works (EXW)
Español: Franco fábrica
F
Face value:
The value indicated on the face of a financial asset, e.g. a US$100 Treasury Bill has a face value of US$100.
Français: Valeur faciale
Español: Valor nominal

Factor cost:
An accounting method whereby the value of output is measured on the basis of the cost of the factors employed in its
production, rather than with reference to its market price. The production factors considered in the measurement
usually include land, labour, capital and enterprise. Some textbooks, however, consider only the first three factors.
Français: Facteur coût
Español: Costo de los factores

Factoring:
A technique which allows businesses (including trading companies) to discount Accounts receivable or other assets to
obtain cash. In factoring, the accounts receivable or other assets are sold at a discount on a daily, weekly or monthly
basis to a factoring house. Such an organization will assume title to the receivables or assets and will also bear all
commercial and political risks connected with the transaction, without the right of recourse to the exporter in the event
of default of the foreign buyer. In practice, the factoring house purchases the trade credits of its client and handles the
collection on the receivables on its own behalf. Factoring may thus be a convenient option for firms without an effective
collection department or which often discount their receivables. Factoring houses usually require that they handle a
large percentage of an exporter's business. They tend to work with short-term receivables (up to 180 days), linked
mostly to sales of consumer goods. In general, factoring of foreign accounts receivable is less common than with
domestic receivables. Compare it with Forfaiting.
Français: Affacturage
Español: Factorización, descuento de facturas, gestión de deudas con descuento, factoring

Factoring houses:
These are companies specialised in the purchase of receivables at a discounted price, usually about 2-4 % lower than
their face value.
Français: Sociétés d'affacturage
Español: Empresa de factorización

Factors of production:
These are the elements which determine a country's output of goods and services. They consist of land, labour, capital
and enterprise, although some textbooks only consider the first three. Variations in the availability of these factors and
in the efficiency of their utilization influence a country's economic growth.
Français: Facteurs de production
Español: Factores de producción

F.A.S.:
See Free Alongside Ship.
Français: F.A.S.
Español: F.A.S.

Federal funds:
USA mandatory reserve assets deposited by US commercial banks at their district Federal Reserve Banks.
Français: Fonds fédéraux
Español: Fondos federales

Federal funds market:

This is the market within which several hundred US banks borrow or lend Federal funds, allowing banks temporarily
short of reserves at the Federal Reserve Banks to borrow from banks which have excess reserves.
Français: Marché des fonds fédéraux
Español: Mercado de fondos federales

Federal funds rate:

The rate at which US banks will lend each other their surplus of reserves held with the Federal Reserve Banks. The
Fed Funds rate, as it is called, often indicates the direction in which U.S. interest rates will move.
Français: Taux des fonds fédéraux
Español: Tasa de los fondos federales, tipo de los fondos federales

Federal Reserve System:

Usually referred to as the Fed, this is the Central Bank of the United States. It is governed by the Federal Reserve
Board located in Washington, D.C. and includes 12 district Federal Reserve Banks.
Français: Système de la Réserve Fédérale
Español: Sistema de la Reserva Federal

Fees:
Additional charges to be paid to lenders. Sometimes referred to as Management fee, Negotiation fee or Agency fee.
Français: Honoraires, Commissions
Español: Honorarios, derechos

F.I.:
See Free In.
Français: F.I.
Español: F.I.

FIFO:
See First in, first out.
Français: FIFO
Español: FIFO

Fiduciary deposits:
A speciality of Swiss banking whereby the depositor’s funds are lent directly to a corporate borrower, while the risks
remain with the depositor. This technique benefits the bank, as the deposits remain off its balance sheets while the
transaction yields a profit. It is also advantageous for the depositor in terms of higher interest rates on lending.
Français: Dépôts fiduciaires
Español: Depósito fiduciario, depósito sin garantía

Final delivery:
A term indicating the date on which the final delivery is carried out.
Français: Livraison finale
Español: Entrega final

Final dividend:
The dividend paid out by a corporation at the end of the year (annual dividend) after quarterly, bi-annual or other
interim dividends have been distributed during the year.
Français: Dividende final
Español: Dividendo complementario

Final maturity:
The due date for the final repayment of the principal.
Français: Echéance finale
Español: Vencimiento final

Finance bill:
A form of bill of Exchange issued without any direct connection to an actual business transaction. It usually offers less
security to the bank compared with a bill linked to a specific commercial transaction. Finance bills frequently take the
form of banker's acceptances and treasury bills issued by public authorities.
Français: Effet financier
Español: Letra de cambio financiera

Financed portion:
The portion of the total contract value or invoice after deduction of the down payments. It serves as the basis for the
calculation of the guarantee/insurance coverage, the risk retention and the guarantee/insurance fees.
Français: Part financée
Español: Porción financiada
Financial engineering:
the process of creating, combining or dividing different financial instruments in order to achieve a specific financial
objective within certain tax and legal constraints.
Français: Ingénierie financière
Español: Técnicas financieras

Financial Futures:
See futures.
Français: Contrats financiers à terme
Español: Financial futures

Financial loan; medium-term financing:

A bank loan granted to domestic or foreign borrowers for a fixed amount and a fixed term, without linking the use of the
loan to a specific commercial transaction. Compare with Export financing credit.
Français: Prêt financier, Financement à moyen terme
Español: Crédito financiero

Financial markets:
A general term indicating the wide array of markets where people buy and sell money and financial instruments.
Financial markets include markets in currencies, bonds, Treasury bills, equities, financial futures, options, bank
deposits, commercial paper, etc.
Français: Marchés financiers
Español: Mercado financiero

Financial Times (FT) index:

London's stock exchange indicator. The index is published daily in the Financial Times newspaper. The main FT index
is the "industrial ordinary", which covers the movements in the shares of the thirty largest industrial companies. A more
widely based index has been developed by the Financial Times and the London Stock Exchange which is known as
the Footsie, standing for FT-SE. See also Dow Jones Index and Nikkei Index.
Français: Indice du Financial Times
Español: Indice del Financial Times

Financing:
Obtaining or supplying money or credit for an investment or trade purpose.
Français: Financement
Español: Financiación, financiamiento

Financing of month-end closing:

This refers to borrowing in order to bridge temporary liquidity shortages at the end of the month.
Français: Financement de bouclement de fin de mois
Español: Financiación para el cierre mensual
F.I.O.:
See Free In and Out.
Français: F.I.O.
Español: Franco de gastos de carga y descarga

First in, first out (FIFO):

An accounting method for evaluating a company's inventories (stocks). As the term indicates, FIFO assumes that
stocked items are used, or sold from stock, in the order in which they arrived. The LIFO method (Last in, first out)
assumes that the newest items are used or are sold first. Using the FIFO method stocks are valued at their original
cost while LIFO values all stocks at current price. As a result, FIFO tends to show a lower level of profits than LIFO
because it excludes the gains from stock appreciation.
Français: 1er entré -1er sorti (FIFO)
Español: (Método de) Primera entrada, primera salida; primero en entrar, primero en salir; PEPS; salida en el orden
de adquisición; salida en el orden de entrada

First loss:
In case of damage, this is the amount which has to be borne by the insured and absorbed before any percentage
refund payment is calculated. Also called a deductible.
Français: 1ère Perte/Franchise
Español: Primer riesgo

First of exchange:
The original of a draft drawn in original and duplicate.
Français: Premier de l'effet
Español: Primera de cambio

Fixed advance:
This a loan which must be repaid at an agreed due date (as a rule in 6 weeks, 3 months or 6 months) or when called.
It is listed in the bank’s balance sheet under the fixed loans and advances heading.
Français: Avance fixe
Español: Préstamo fijo

Fixed assets:
A term indicating tangible assets such as real estate, buildings, land, plant and machinery, bought by the firm for long-
term use rather than for resale or immediate consumption. Increasingly, fixed assets include intangible assets such as
patents, trademarks and customer recognition. Fixed assets are retained in the business for long periods and a portion
of their original cost will be written off annually against profits for amortization to reflect their diminishing value over
time. In the firm’s balance sheet fixed assets are therefore usually shown at cost, less depreciation charged to date. It
should however be noted that certain fixed assets, such as property, tend to appreciate in value. The figures on the
balance sheet thus need to be periodically revalued to keep in line with market values.
Français: Immobilisations
Español: Activos fijos

Fixed charge:
A security or collateral given by a borrower to a lender, in the form of a claim on specific assets of the borrower should
he fail to pay. If the borrower goes bankrupt, only these specific assets may be taken over by the lender. Compare with
Floating charge.
Français: Droit de gage fixe, limité
Español: Cargo fijo

Fixed costs:
Costs which are fixed in total for a given period of time and for given production levels, such as factory rents or staff on
contracts. They cannot be altered in the short-term and are therefore a constraint on the immediate flexibility of the
firm.
Français: Coûts fixes
Español: Costos fijos, gastos fijos

Fixed-date bill:
A bill of Exchange which becomes due and payable at a specified date after the issue date. Also known as after-sight
bill, it is frequently employed in international transactions.
Français: Effet à date fixe
Español: Letra con fecha fija

Fixed exchange rate:

A currency’s exchange rate which is officially kept fixed at a specified level over time or is allowed to float within a
permitted margin of fluctuation. The fixed level of the exchange rate is ensured by the Central Bank through purchases
and sales of foreign reserves on the foreign exchange markets.
Français: Taux de change fixe
Español: Tipo de cambio fijo

Fixed exchange rate system:

A system where the exchange rates of the participating currencies are tied to (i.e. fixed in terms of) some common
standard, such as gold, another country’s currency, a basket of currencies, etc. Limited fluctuations from such
common standards may be allowed, leading to an adjustable peg-rate system. Examples of fixed exchange rate
systems include the Bretton Woods agreement (1945-1973), whereby the U.S. tied the dollar to gold, with other
countries pegging their currencies to the dollar. The European Monetary System is another example, within which the
participants' currencies were allowed to float within a fluctuation margin fixed around the relative ECU rate.
Français: Système de taux de change fixe
Español: Sistema de tipo de cambio fijo

Fixed-interest financial securities:

Any financial security which has a predetermined fixed interest rate attached to its par value (such as Treasury bills,
bonds, debentures, notes and preference shares etc.). The borrower of a fixed-interest financial security must pay
interest at the set rate for its entire maturity. For example, a debenture with a par value of £100 at 5% will pay out a
fixed rate of interest of £5 per annum until maturity.
Français: Titres financiers à taux d'intérêt fixe
Español: Valor de renta fija

Fixed price:
Usually used in the same sense as lump sum, but referring to goods rather than services. It is a fixed sum, agreed at
the signature of the contract, to be paid to the seller for the goods traded.
Français: Prix fixe
Español: Precio fijo

Fixed rate loan/lending:

A term loan for which the interest rate has been set at an agreed fixed rate for the entire life of the loan.
Français: Prêt à taux fixe / financement
Español: Préstamo con tipo de interés fijo

Flat:
(1) In bond trading, a flat price refers to the price of a security traded without accrued interest.
(2) The underwriter's position if all securities are sold.
(3) A position on the foreign exchange markets where buying commitments are equal to selling commitments (squared
position).
Français: Flat
Español: Fijo, uniforme

Flight capital:
A term used for capital transferred to another country in violation of capital export control laws. See also Hot money.
Français: Evasion de capital
Español: Fuga de capitales

Flight to quality:
A process whereby investors move towards safer government bonds during periods of economic uncertainty.
Français: Refuge dans la qualité
Español: Desplazamiento hacia las emisiones de mayor calidad

Float:
(1) The issue of a security (equity or loan stock). The term may also refer to the number of shares actively tradable in
the market, excluding shares held by major stakeholders who have a binding agreement not to sell.
(2) Flexible foreign exchange rates, with no intervention by the authorities in the foreign exchange market (see also
clean floating)
Français: Flotter/Emettre
Español: Float

Floating charge:
A security/collateral for a loan given by the borrower as a guarantee against his company’s assets. The lender will
register a floating charge on the total assets of the borrower, without listing them. This allows a certain flexibility e.g.
over stocks or plant/machinery which needs to be replaced.
Compare with Fixed charge.
Français: Droit de gage global
Español: Cargo flotante

Floating debt:
Short-term, non-funded and non-consolidated debt of a public authority. Opposite: consolidated (funded) debt.
Français: Dette flottante
Español: Deuda flotante

Floating (flexible) exchange rate:

The situation when a currency value is determined by trading on the foreign exchange markets and is allowed to move
or "float" freely, without any, or minimal, Central Bank intervention. It is sometimes referred to as clean float, as
opposed to a dirty float when the Central Bank intervenes to restrict exchange rate fluctuations. Opposite: Fixed
exchange rates.
Français: Taux de change flottant (flexible)
Español: Tipo de cambio flotante, tipo de cambio flexible

Floating rate:
An interest rate based on a variable interest rate benchmark, such as a specific-maturity Treasury bill yield. A fixed
margin is usually added to such a benchmark.
Français: Taux variable
Español: Tipo flotante, tasa flotante, tipo variable

Floating Rate Note (FRN):

A short-term bond issued (typically on the Euromarkets) with a variable (floating) coupon or interest rate, which varies
in line with a reference short-term market interest rate (usually, the LIBOR or prime rate). Adjustments to the bond’s
rates are made at intervals of three or six months to account for changes in the reference rate, and interest is usually
paid twice a year to the note holder. Popular with international banks, FRNs contrast with conventional bonds on which
the coupon rate is fixed until maturity. Borrowers prefer FRNs if they expect a fall in market interests rates, or if they
have already issued a lot of fixed-rate debt and wish to diversify their debts. See also Capped FRNs.
Français: Obligation à taux variable
Español: Bono de interés flotante, bono de interés variable

Floor:
(1) The place where trading in a stock exchange actually takes place
(2) The minimum rate of interest on a floating rate note.
Français: Corbeille ou Plancher
Español: Bono con interés flotante mínimo

Floored FRN/Floor:
A Floating rate note with a minimum interest rate.
Français: FRN à taux minimum
Español: Floored FRN

F.O.:
See Free Out.
Français: F.O.
Español: F.O.

F.O.B.:
See Free on Board.
Français: F.A.B.
Español: F.O.B.

Footsie (FT-SE 100 stock index):

Introduced in 1994 by the Financial Times and the London Stock Exchange, it is a computerised financial index of 100
major British companies.
Français: Footsie Indice FT-SE des 100 actions
Español: Indice de la bolsa de Londres y del Financial Times

Force majeure:
A standard clause (for example in marine contracts) which exempts the parties for non-fulfilment of their obligations as
a result of conditions beyond their control, such as earthquakes, floods, war or other events over which none of the
parties has control or influence. (Act of God).
Français: Force majeure
Español: Cláusula de fuerza mayor

Forced sale of collaterals:

The forced sale of the assets pledged as security for a loan if the credit utilised exceeds the value of the pledged
collaterals, or if the borrower has defaulted in repaying the principal or paying the due interest.
Français: Vente forcée des actifs mis en gage
Español: Venta forzada de garantías

Foreign assets:
Credit balances or claims towards foreign debtors. Foreign assets may for instance take the form of loans granted by
the banks to customers abroad, holdings in foreign enterprises, direct investments abroad, foreign real estate etc.
Opposite: Foreign liabilities.
Français: Actifs étrangers
Español: Activos en el exterior, activos exteriores

Foreign bond:
A bond issued and sold outside the country of the borrower in the currency of the country of issue. For example, a
Swiss franc bond issued by an American company and sold in Switzerland. Opposite: Domestic bond.
Français: Obligation étrangère
Español: Bono extranjero, obligación extranjera

Foreign content:
The share of a product which may be attributed to foreign goods or services (i.e. not completely produced with
domestic inputs). Foreign content requirements are, for example, frequently imposed in the public procurement sector.
Foreign content may also play a role in the provision of export credit support, as the Export Credit Agency may restrict
its support of foreign content to a percentage of the total contract, or in proportion to the domestic content of the
contract.
Français: Contenu étranger
Español: Contenido extranjero

Foreign Credit Insurance Association (FCIA):

An agency of the Export-Import Bank (Eximbank) of the United States offering comprehensive insurance cover against
political and commercial risks on export receivables. FCIA was founded in 1961 as a partnership between a group of
private insurance companies and Eximbank. While the FCIA directly underwrites commercial credit risks, Eximbank is
responsible for the political risks and may underwrite or reinsure the commercial risk. FCIA acts as an agent
responsible for the marketing and daily administration of the programme.
Français: Association de l'assurance de crédit étranger
Español: Asociación de Seguros a Créditos en el Extranjero

Foreign currency account:

An account denominated in another country’s currency.
Français: Compte en monnaie étrangère
Español: Cuenta en divisas

Foreign currency option:

An option which gives the right to buy or sell a specified amount of foreign currency at a specified price within a
specified period of time.
Français: Option en monnaie étrangère
Español: Opción en divisas

Foreign currency swap:

A swap operation whereby a currency is traded against another currency, with the agreement that the transaction will
be reversed at some specified future date.
Français: Swap en monnaie étrangère
Español: Swap en divisas

Foreign direct investment (FDI):

The purchase of foreign physical assets such as real estate, plant and equipment, involving the acquisition of a certain
degree of management control. FDIs are defined by the International Monetary Fund as "investments made to acquire
a lasting interest in an enterprise operating in an economy other than of the investor, the investor's purpose being to
have an effective voice in the management of the enterprise". The element of management control is what
differentiates FDIs from mere portfolio investments.
Français: Investissement étranger direct
Español: Inversión extranjera directa, IED, inversión directa extranjera

Foreign draft:
A draft drawn by a bank or another drawer on a bank or another drawee in a foreign country. The draft may be
denominated in any currency.
Français: Traite étrangère
Español: Giro extranjero

Foreign exchange:
A general term indicating foreign currencies. A country earns foreign exchange by exporting goods and services.
Français: Devises
Español: Divisas

Foreign exchange contract:

A contract between a bank and its client to purchase or sell foreign exchange at a fixed rate with delivery at a specific
time. It allows the client to protect himself from adverse fluctuations in foreign exchange rates.
Français: Contrat de devises
Español: Contrato en divisas

Foreign exchange controls:

Various forms of control imposed by government authorities on the purchase/sale of foreign currencies by residents, or
on the purchase/sale of domestic currency by non-residents.
Français: Contrôle des devises
Español: Control de cambio

Foreign investment:
The purchase of assets (foreign direct investment) or securities (portfolio investment) abroad by a company or
individual.
Français: Investissement étranger
Español: Inversión extranjera

Foreign leasing:
A leasing contract whereby the lessor is an entity domestic to the lessee’s country but owned by an entity located
outside the lessee’s country.
Français: Crédit-Bail étranger
Español: Arrendamiento en divisas

Foreign liabilities:
Financial obligations towards foreign creditors, for example debts towards a bank located abroad. Opposite: Foreign
assets.
Français: Dettes étrangères
Español: Pasivos exteriores, pasivos en el exterior, deudas en cuenta extranjera, pasivos externos

Foreign market value:

The price at which merchandise is sold, or is offered for sale, on the main foreign markets of the country of export.
Français: Valeur marchande étrangère
Español: Valor en el mercado extranjero

Foreign Sales Agent:

An individual or a firm acting as the foreign representative of a domestic supplier for its sales abroad.
Français: Agent de vente étranger
Español: Agente de ventas en el exterior

Foreign Sales Corporation (FSC):

A corporation which may be established by a US exporter to shelter some of his income from taxation. Special tax
treatment is granted if the FSC fulfils certain conditions, such as being a foreign corporation, maintaining an office
outside US territory and having at least one director resident outside of the United States.
Français: Société de ventes à l’étranger
Español: Sociedad de venta al exterior

Foreign Trade Organizations (FTO):

Agencies organized along product lines, responsible for handling foreign sales and purchases in most centrally
planned economies.
Français: Organisations de commerce extérieur
Español: Organización de comercio exterior

Foreign trade zones (FTZ):

Special physical sites where firms are allowed by the government to delay or avoid paying tariffs on imports. Domestic
goods for export may be considered exported for excise tax rebates and drawback purposes upon entering the FTZ
zone. See also Export Processing Zones.
Français: Zones de commerce avec l'étranger (FTZ)
Español: Zona franca

Forex:
Abbreviation for Foreign exchange.
Français: Forex
Español: Forex

Forfaiting:
A form of non-recourse export financing, whereby the exporter sells the forfaiter its export receivables at a Discount, in
exchange for cash. Usually the receivables are guaranteed by a bank in the importer’s country, and sometimes also by
the Central Bank or the government of the importer’s country. Forfaiters typically work with Bills of exchange or
Promissory notes, i.e. unconditional and negotiable debt instruments. Under this technique, the forfaiting company
carries all the risks, with no right of recourse against the exporter in case of the failure of the importer to make due
payment. The exporter is enabled to extend credit terms to importers and will incorporate the discount into the selling
price. The main characteristics of forfaiting are:

Forfaiters work on the basis of single transactions.

Forfaiters generally work with medium-term receivables (180 days to seven years)
Forfaiters usually work with capital goods, commodities and large projects.
It should be noted that, as forfaiters usually require a bank guarantee, they are generally willing to work with
receivables from developing countries. Compare with Factoring.
Français: Escompte sans recours
Español: Descuento de bonos a plazo medio; descuento de pagarés a plazo medio

Formation of capital coverage:

A financing technique used by insurance companies and pension funds, whereby the contributions of the insured
parties are accumulated to form the capital required for the payment of insurance benefits.
Français: Constitution de capital de couverture
Español: Formación de cobertura de capital

Forward contract:
A contract to deliver an asset (such as foreign currency, security, commodity, etc) at a specified future date and at a
specified price. Unlike futures, forward contracts are not standardized and are not traded on organized exchanges.
Français: Contrat à terme
Español: Contrato de futuros, contrato a término, contrato a plazo

Forward dollars:
The price of US dollars, for delivery at a fixed future date (e.g. in 3 months).
Français: Dollars à terme
Español: Dólar a futuro

Forward (exchange rate) market:

A market where traders, dealers and market makers purchase and sell foreign currencies for delivery or acceptance
beyond the spot date. Market expectations determine whether a currency forward rate stands at a premium (higher) or
at a discount (lower) in relation to its spot rate.
Français: Marché des changes à terme
Español: Mercado de futuro

Forward rate:
A contractually-established exchange rate between a foreign exchange trader and the client for delivery of foreign
currency at a specific date in the future. It is the price applicable for a future transaction or on the future markets.
Opposite: Spot rate.
Français: Taux à terme
Español: Tipo de interés futuro, tasa de interés futura

Forwarder's receipt:
The certificate issued by a forwarding agent confirming the receipt of goods for shipment. It is not a security but it is
often necessary for the execution of a documentary credit.
Français: Récépissé du transporteur
Español: Recibo de la agencia de transporte

Foul Bill of Lading:

A receipt issued by a carrier indicating that the goods were damaged when received. Compare with Clean Bill of
Lading.
Français: Connaissement avec réserve
Español: Conocimiento de embarque sucio

F.P.A.:
Free of Particular Average.
Français: F.P.A.
Español: Libre de avería particular, libre de avería simple

Fractional reserve:
The reserve held by banks as a precautionary measure. The sums devoted to reserves are generally much lower than
the amounts loaned and re-loaned to borrowers.
Français: Réserve partielle
Español: Reserva fraccionaria
Franchising:
A sales and distribution method whereby one party (the franchisor) gives an independent party (the franchisee) the
authorisation to distribute his products or services under an established name. This is not a branch of the franchisor's
business, but a separate business under the original trademark and business concept. The franchisor provides
continual assistance to the operation of the franchisee network in order to ensure that their activities conform to the
agreed standards.
Français: Franchisage
Español: Franquicia

Free (of charge):

See Freight prepaid.
Français: Libre de frais
Español: Free of charge

Free Alongside Ship (F.A.S.):

A term commonly used in international trade contracts indicating that the quoted price by the seller includes insurance
and charges for delivery of the goods alongside a designated vessel at the port of departure. The seller bears the
costs of unloading and wharfage, whilst loading, ocean transportation and insurance costs are left to the buyer. F.A.S.
is also a reference for export and import valuation.
Français: Franco long du bateau
Español: Franco al costado del buque (FAS)

Free carrier:
This indicates that the seller’s obligations are fulfilled upon delivery of the goods, cleared for export, to the carrier
named by the buyer at an agreed shipping place. If no precise place is indicated by the buyer, the seller may select
from a stipulated range of places where the carrier should take the goods into his charge. This term may be used for
any mode of transport, including rail, air and multimodal transport. When, according to commercial practice, the seller
provides assistance to organise the transport of the goods by a carrier, he may act at the buyer's risk and expense.
Français: Franco transporteur
Español: Franco transportista

Free in:
A pricing term indicating that the charterer of a vessel is responsible for the cost of loading the merchandise onto the
vessel.
Français: Free in
Español: Franco de gastos de carga

Free in and out:

A pricing term indicating that the charterer of a vessel is responsible for the costs of loading and unloading goods from
the vessel.
Français: Free in and out
Español: Franco de gastos de carga y descarga
Free of Particular Average (F.P.A.):
A clause used in marine insurance relating to the recoverability of partial and total losses from perils of the sea. The
American and English coverage vary as follows:
(1) American Conditions (FPAAC). The underwriter does not assume responsibility for partial losses unless caused by
sinking, stranding, burning or collision with another vessel.
(2) English Conditions (FPAEC). The underwriter assumes responsibility for partial losses if the vessel is sunk,
stranded, burned, on fire or in collision, even though such an event did not actually cause the damage suffered by the
goods.
Compare with All Risks Coverage and With Average.
Français: Libre d’avarie particulière
Español: Libre de avería particular, libre de avería simple

Free on Board (F.O.B.):

Under this term, the price of the good quoted by a seller includes transport, insurance and loading costs incurred until
the merchandise is loaded on board the ship. The seller fulfils his obligations when the goods are boarded (i.e. have
passed over the ship’s rail) at the named port of shipment. The buyer has to bear all costs and risks of loss or damage
arising from the point of loading. The term FOB can only be used for sea or inland waterway transport. When the
ship’s rail serves no practical purpose, such as in the case of roll-on/roll-off container traffic, the Free Carrier term is
more appropriate. FOB values also serve as a reference for import and export valuation
Français: Franco à bord (F.A.B.)
Español: Franco a bordo (F.O.B.)

Free on rail/free on truck:

Contractual terms used when the goods are to be carried by rail ("trucks" refers to the railway wagons).
Français: Franco sur rail / Franco sur wagon
Español: Franco en vagón

Free out:
A pricing term indicating that the quoted price is inclusive of the costs of unloading the goods from the vessel.
Français: Free out
Español: Franco de gastos de descarga

Free port:
An area of the port where merchandise may legally be unloaded and stored duty-free, pending re-export or sale within
that country.
Français: Port franc
Español: Puerto franco

Free Trade Area (FTA):

A regional trade agreement integration whereby tariffs on trade between member states are abolished, but participants
maintain their own external tariffs towards imports from countries outside the area. Compare to Custom Union.
Français: Zone de libre échange
Español: Zona de libre comercio, zona franca

Freight/Carriage... paid to:

A contractual term indicating that it is the seller who pays the freight for the carriage of goods to the named
destination. Any additional costs and the risk of loss or damage to the goods are transferred from the seller to the
buyer when the goods are delivered into the custody of the first carrier, and not at the ship's rail. The term may be
used for all modes of transport.
Français: Fret, transport...payé à
Español: Flete pagado hasta, porte pagado hasta

Freight/Carriage… and insurance paid to:

A term indicating that, in addition to the "Freight/Carriage... paid to" obligations, the seller also has to undertake
transport insurance against the risk of loss or damage to the goods during carriage. It is thus the seller’s responsibility
to establish a contract with the insurer and to pay the relevant premium.
Français: Fret/Transport ...et assurance payés à
Español: Flete y seguro pagado hasta, porte y seguro pagado hasta

Freight collect:
A term used on shipping documents and in price quotations indicating that the buyer or consignee must pay all
shipping charges.
Français: Port avancé
Español: Flete debido, porte debido

Freight Forwarder:
An independent service company which specialises in the handling of export shipments on behalf of the exporter,
remunerated on a fee basis. The forwarder provides services to facilitate the expedition of the shipment to its overseas
destination, such as preparing the shipping documentation, counselling the exporter when applying for trade financing,
booking and arranging space for shipments, arranging cargo insurance, advising the shipper on overseas
requirements on marking and labelling, etc.
Français: Transitaire
Español: Agente de transportes, agente expedidor

Freight prepaid:
A term used in price quotations showing that the seller has paid the costs of freight from one named point to a second
named point, but that the title to the shipment passes to the buyer at the first named point.
Français: Fret payé d’avance
Español: Flete pagado por anticipado

FRN:
Abbreviation for Floating rate note.
Français: FRN
Español: FRN

Front end costs:

Commission fees or other payments, taken at the outset of a loan or other financial operation.
Français: Frais payés au début
Español: Costos iniciales

Front end finance:

In international trade transactions, a commercial loan provided to the buyer, under which separate credit facilities are
provided to finance down payment and/or other direct payments not covered under buyer credit or supplier credit
financing.
Français: Financement au début
Español: Financiación suplementaria, financiación sin garantía, financiación sin asegurar

Full convertibility:
A situation in which both residents and non-residents can purchase unlimited amounts of any currency.
Français: Convertibilité totale
Español: Convertibilidad total

Full service bank:

A bank operating in all banking sectors. See also: Mortgage bank.
Français: Service bancaire complet
Español: Banco múltiple, multibanco

Full set:
Term used in a documentary credit transaction for a bill of lading which has been drawn up in three original copies.
Français: Jeu complet
Español: Conjunto completo

Functional currency:
The currency of reference when converting a group’s financial statements expressed in different foreign currencies. It
is typically the currency of the country where the firm has its base or core operations.
Français: Monnaie de référence
Español: Moneda funcional

Funds:
(1) Cash or other assets easily convertible into cash which have been set aside or reserved for a particular purpose,
such as the pension fund of a company.
(2) Abbreviation for investment funds.
Français: Fonds
Español: Fondos

Futures; Future transactions:

A type of derivative, represented by contracts for the sale or purchase of an agreed quantity of a specified asset, for
delivery at a specified future date and at a predetermined price. The assets underlying a futures contract may be
represented by commodities, foreign exchange, shares and other securities. When commodities are used in futures
trading they are not intended to be delivered physically (although this is not ruled out) but entail the settlement of price
differences. Trade in financial futures is standardised and takes place on specialized markets such as the Chicago
Board Options Exchange (CBOE), the New York Futures Exchange (NYFE) and MATIF. Compare with forward
contract. See also option.
Français: Opérations à terme
Español: Futuros, futuros financieros, operaciones a término

Futures market or forward exchange market:

A market where commodities (rubber, tin, etc.), foreign currencies and securities are bought and sold for delivery at
some future point in time, as opposed to the spot market which provides for immediate delivery. Unlike the spot
market, where commodities are traded in the physical sense, on the futures market it is only the contracts which are
bought and sold. While traders in commodities, or financial assets whose price fluctuates greatly over time, may
engage on the forward/futures market in order to minimize risk and future uncertainty (i.e. hedge against adverse price
movements), dealers and speculators do so hoping to earn profits from correctly anticipating price movements. e.g. a
producer of chocolate may buy a future on a given amount of cocoa at today's price, plus a percentage risk premium,
for delivery in two months' time. Even if cocoa prices rise steeply, the manufacturer will still able to buy at the contract
price and can therefore plan his raw materials accordingly. Similarly, cocoa growers can contract to sell the commodity
at an agreed current price for delivery in the near future in order to protect themselves from adverse price changes.
Français: Marché à terme
Español: Mercado de futuros
G
GATS:
See General Agreement on Trade in Services.
Français: GATS
Espa ٌ◌ol: GATS

GATT:
See General Agreement on Tariffs and Trade.
Français: GATT
Espa ٌ◌ol: GATT

GDP:
See Gross Domestic Product.
Français: GDP
Espa ٌ◌ol: GDP

Gearing:
This indicates the degree of a company’s indebtedness. The most common measures of corporate indebtedness are
the debt ratio (measuring the share of the company’s capital which is in the form of debt) and the debt-equity ratio (the
ratio between the company’s debt and the equity provided by its shareholders). The higher the gearing ratios, the more
critical is the company’s financial situation and the more vulnerable it is to bankruptcy. The term gearing may also refer
to the ratio between ordinary shares and preference shares in the company’s equity. The expression "income gearing"
refers to the proportion of the company’s profits used to pay interest. The US expression for gearing is leverage.
Français: Effet de levier
Espa ٌ◌ol: Apalancamiento

General Agreement on Tariffs and Trade (GATT):

An international agreement, established in January 1994, providing the legal framework for international trade, whose
primary mission is the reduction of barriers to free trade between member countries. The GATT is now managed by
the World Trade Organisation, based in Geneva, Switzerland.
Français: Accord Général sur les Tarifs Douaniers et le Commerce (AGETAC)
Espa ٌ◌ol: Acuerdo General sobre Aranceles Aduaneros y Comercio (GATT )

General Agreement for Trade in Services (GATS):

Created in the Uruguay Round as a comprehensive system establishing multilaterally-agreed and legally enforceable
rules and disciplines covering international trade in services. The Agreement contains a framework of general rules
and disciplines, annexes addressing special conditions relating to individual sectors and liberalization commitments
specific to the service sectors listed in each country's schedule.
Français: Accord Général pour le Commerce des Services
Espa ٌ◌ol: Acuerdo General sobre el Comercio de Servicios (AGCS)
General Arrangement to Borrow:
A credit line set up in 1962 by the Group of Ten on behalf of the International Monetary Fund. Until January 1983, this
credit line was limited to loans to G10 members but since then it has been open to all IMF members.
Français: Disposition Générale pour Emprunter
Espa ٌ◌ol: Acuerdos Generales para la Obtenci َ◌n de Préstamos (AGP)

General creditor:
An unsecured creditor.
Français: Créancier général
Espa ٌ◌ol: Deudor general

General Export License:

This gives its holder the right to export to specified countries without requiring any additional formal application or prior
written authorisation. Compare with Validated Exports License.
Français: Licence d’Exportation Générale
Espa ٌ◌ol: Licencia general de exportaci َ◌n

General tariff:
A tariff which applies to countries which do not enjoy preferential or Most Favoured Nation (MFN) tariff treatment.
Where the general tariff rate differs from the MFN tariff rate, the general tariff rate is usually the higher.
Français: Tarif général
Espa ٌ◌ol: Arancel general

Generalized System of Preferences (GSP):

A preferential trade framework under which exports of developing countries are allowed to enter the markets of
industrialised countries at a lower preferential tariff rate. However, the GSP framework includes a number of important
exceptions, mainly in relation to exports of textiles and agricultural goods from developing countries. In general, the
GSP is one element of a co-ordinated effort by the industrial trading nations to bring developing countries more fully
into the international trading system.
Français: Système Généralisé des Préférences (Privilèges)
Espa ٌ◌ol: Sistema Generalizado de Preferencias (SGP)

Gilt-edged bonds:
Highly rated bonds, whose issuers have a long-standing reputation of paying interest on time. See also Gilt-edge
securities.
Français: Obligations de premier ordre
Espa ٌ◌ol: Gilt-edged bonds

Gilt-edged securities:
A UK term indicating the loans made to the government. This type of security is considered practically "risk free", since
the risk of default associated with the government is the lowest possible. Some types of gilt-edged securities are
known also as Treasury bills.
Français: Titres de premier ordre
Espa ٌ◌ol: Gilt-edged security

Giro:
A payment system set up by a group of banks or postal authorities which allows customers of one bank to make
payments to customers of any other bank without the use of cash or cheques. The customer simply needs to fill in an
instruction form which is passed through a central clearing system operated by the group.
Français: Giro
Espa ٌ◌ol: Giro bancario, transferencia bancaria

Global policy:
A credit insurance policy which covers all export activities of the exporter during an agreed period, usually one year.
Français: Police globale
Espa ٌ◌ol: P َ◌liza global

Global quota:
An import quota applying to the total imports of a specific product coming from all countries.
Français: Quota global
Espa ٌ◌ol: Contingente global

GNP:
Gross National Product.
Français: PNB
Espa ٌ◌ol: GNP

Good delivery:
A term used in purchase or sales contracts indicating that the merchandise, securities or precious metals which are
the object of the transactions meet the general delivery conditions of the market.
Français: Bonne livraison
Espa ٌ◌ol: Buena entrega

Grace period:
The period during which no repayments of principal (sometimes principal plus interest) are due from the borrower to
the lender. With reference to public sector debt rescheduling, it indicates the period, usually of several years, during
which no payments (either principal or interest) need to be made. See also rescheduling agreement.
Français: Période de grâce
Espa ٌ◌ol: Per‫ي‬odo de gracia, per‫ي‬odo de amortizaci َ◌n diferida
Grant element:
A measure of the degree of concessionality of a loan. It is defined by the OECD's Development Assistance Committee
(DAC) as the difference between the face value of the loan and the present value of the stream of repayment on that
loan (discounted at a flat rate of 10 percent regardless of the currency of denomination), expressed as a percentage of
the face value.
Français: Elément de subvention
Espa ٌ◌ol: Factor concesionario, factor de donaci َ◌n

Green clause credit:

A clause in a letter of credit enabling the buyer to receive pre-shipment advances against a collateral represented by,
for example, warehouse receipts/warrants. It is commonly used in the export of agricultural commodities, where the
company may raise funds to harvest new crops for export by pledging available stocks as collateral.
Français: Crédit à clause verte
Espa ٌ◌ol: Carta de crédito con cl‫ل‬usula verde

Gross:
The total amount of money given before any deductions have been made. For example, Gross income refers to
income before taxation, Gross Domestic Product indicates the value of a country's output of goods and services before
any deduction is made for the depreciation of the country's capital investment or for taxation. Opposite: Net.
Français: Brut
Espa ٌ◌ol: Bruto

Gross Income:
See Gross.
Français: Revenu Brut
Espa ٌ◌ol: Ingreso bruto

Gross interest:
Interest paid before deductions for withholding tax are made from the original amount Opposite: net interest.
Français: Intérêt brut
Espa ٌ◌ol: Interés bruto

Gross Domestic Product (GDP):

A measure of the market value of all goods and services produced in a given country during the reference period of
time, regardless of the asset’s ownership. Unlike Gross National Product, GDP excludes receipts from that country’s
assets invested abroad, such as the earnings of foreign affiliates of domestic corporations.
Français: Produit Intérieur Brut (PIB)
Espa ٌ◌ol: Producto interno bruto (PIB)

Gross National Product (GNP):

A measure of the value of a nation's output of goods and services during a particular time period produced by
domestic assets. It thus includes the revenues from the country’s business operations conducted abroad, as well as
earnings from foreign investments. Nominal GNP measures the value of output expressed in present day prices, while
Real GNP measures output value in constant prices (i.e. taking account of inflation). The latter is the better indicator of
the country’s economic growth.
Français: Produit National Brut (PNB)
Espa ٌ◌ol: Producto Nacional Bruto (PNB)

Gross profit:
The difference between a company’s sales revenues and its production costs (such as inventories, raw materials,
wages, etc.) before taxation.
Français: Profit brut
Espa ٌ◌ol: Beneficio bruto

Gross weight:
The full weight of a shipment, including both goods and packaging. Compare with Tare weight.
Français: Poids brut
Espa ٌ◌ol: Peso bruto

Gross yield:
The revenue produced by investments (such as securities, real estate, property, etc.) before any deductions, such as
for charges or taxes, are made. Net yield is the opposite.
Français: Rendement brut
Espa ٌ◌ol: Rendimiento bruto, producto bruto

Group of Ten:
The group of wealthy industrial countries ready to lend their currencies to the International Monetary Fund under the
General Agreements to Borrow, up to specified amounts when supplementary resources are needed. The finance
ministers of these countries comprise the Group of 10. Its members include: Belgium, Canada, France, Germany, Italy,
Japan, The Netherlands, Sweden, Switzerland, the United Kingdom and the United States. The numerical name
persists, although the number has increased to 11 with the addition of Switzerland in 1984.
Français: Groupe des dix
Espa ٌ◌ol: Grupo de los Diez

Guarantee:
A contractual engagement protecting the holder of the guarantee against default, bankruptcy or failure of a third party.
The guarantor will pay the debt to the obligee if the third party (principal debtor or obligor) fails to perform. It also refers
to the commitment provided by an Export Credit Agency to reimburse the lender (frequently a commercial bank) if the
exporter fails to repay a loan. In return for this coverage, the lender pays a guarantee fee. Although guarantees may
be unconditional, they frequently have conditions attached to them.
Français: Garantie
Espa ٌ◌ol: Garant‫ي‬a
 Guarantee credit:
A bank credit not involving the actual provision of funds by the bank, but rather the bank’s assumption of liabilities or
obligations on behalf of its customers, e.g. bill guarantee, acceptance or surety credit. Compare with money loan.
Français: Garantie de crédit
Espa ٌ◌ol: Crédito de garant‫ي‬a

Guarantee Fee:
A fee charged by an Export Credit Agency to provide assurance of payment or compliance by a third party. Sometimes
also called Premium.
Français: Honoraires, commission de garantie
Espa ٌ◌ol: Comisi َ◌n de garant‫ي‬a

Guaranteed bond:
A bond issue where a third party (e.g. parent company) guarantees the fulfilment of the terms of the issue
Français: Obligation garantie
Espa ٌ◌ol: Obligaci َ◌n garantizada

Guaranteed credit:
A credit secured by one or several guarantees. In some European countries, special guarantee co-operatives have
been founded for this purpose, such as mortgage guarantee co-operatives. The bank usually requires joint and several
guarantees before agreeing to extend credit..
Français: Crédit garanti

H
Hard currency:
A freely convertible currency which is not expected to depreciate in value in the foreseeable future. Hard currencies
are typically in strong demand and their exchange rate tends to appreciate because of the persistently high demand
relative to supply. Opposite: Soft currency.
Français: Monnaie forte
Espa ٌ◌ol: Moneda fuerte, moneda dura

Harmonized System (HS):

A system for classifying goods in international trade under a single commodity code, developed under the control of
the Customs Co-operation Council. The full title is Harmonized Commodity Description and Coding System.
Français: Système harmonisé
Espa ٌ◌ol: Sistema Armonizado, Sistema Armonizado de Designaci َ◌n y Codificaci َ◌n de Mercanc‫ي‬as (SA)

Hedge/Hedging:
A technique of protecting one’s business, assets or business transactions from adverse changes in market prices or
rates. The basic principle of hedging is to take an equal but opposite position on the market. Derivatives, such as
futures and options, are also commonly employed to reduce the risk of a transaction. Hedging is widely used in
merchandise, commodities, foreign exchange and securities transactions for security rather than speculative purposes.
Français: Protéger/Couverture
Espa ٌ◌ol: Cobertura

Helsinki Package:
An agreement reached by OECD participants of the Consensus limiting the use of tied-aid credits to projects which
would not be commercially viable without an aid element.
Français: Paquet d’ Helsinki
Espa ٌ◌ol: Paquete de Helsinki

Holding company:
A company with participation in other firms for the purpose of financial investment and control. In order to constitute a
holding, the parent company should own enough voting shares to be able to control its subsidiaries' management and
operations. The holding’s subsidiaries frequently operate in different lines of business.
Français: Société de contrôle, Société de participations, Société-faîtière, Société-mère
Espa ٌ◌ol: Sociedad tenedora, sociedad holding

Horizontal export trading company:

An export trading company which exports a range of similar or identical products supplied by different manufacturers
or producers.
Français: Société commerciale d’exportation horizontale
Espa ٌ◌ol: Compa‫◌ٌ ي‬a comercial horizontal de exportaciones

Hours purposes:
The time specified in a charter for the loading and discharging of the shipment.
Français: Horaire
Espa ٌ◌ol: Prop َ◌sito horario

Hot issues:
Newly issued securities, strongly oversubscribed in the primary market, which are often traded at higher-than-issue
prices in the secondary market.
Français: Emisions à succès
Espa ٌ◌ol: Emisiones calientes

Hot money:
In the presence of capital export restrictions or exchange controls, this is a synonym for flight capital, i.e. money
illegally exported outside the country. In general, this refers to money moved across country borders in response to
interest rate differences which is moved away again when the interest rate differential disappears.
 Français: Fuite de capitaux
Espa ٌ◌ol: Capital especulativo, dinero especulativo

Hyperinflation:
A situation of high and rapidly accelerating inflation.
Français: Hyperinflation
Espa ٌ◌ol: Hiperinflaci َ◌n

I
IBRD:
Abbreviation for International Bank for Reconstruction and Development.
Français: BIRD
Español: IBRD

IBOR:
See Interbank Offered Rate.
Français: IBOR
Español: IBOR

ICOR:
See Capital-output ratio.
Français: ICOR
Español: ICOR

IDA:
bbreviation for International Development Association.
Français: IDA
Español: IDA

IFC:
Abbreviation for International Finance Corporation.
Français: IFC
Español: IFC

IMF:
International Monetary Fund.
Français: FMI
Español: IMF

Import certificate:
A means by which the government of the country of final destination monitors and controls the importation of the
goods covered by the certificate.
Français: Certificat d’importation
Español: Certificado de importación, declaración de importación

Import License:
A document required and issued by some governments to allow the importation of goods into their countries.
Français: Licence d’importation
Español: Licencia de importación, permiso de importación

Import quota:
A quantitative restriction by a government on its country’s imports. Once the total amount of the goods to be allowed
for import during a specified period has been determined, the authorities may issue a number of licenses to importers,
assigning each one a quota. Import licenses may also specify the country from which the importers must purchase the
goods.
Français: Quota d’importation
Español: Contingente de importación, cupo de importación

Import substitution:
An economic policy and development strategy focusing on the replacement of imports with domestically produced
goods, usually accomplished through protectionism, as the route to economic growth. Compare with export oriented
strategy.
Français: Importation de substitution
Español: Sustitución de importaciones

Import tariff:
A duty placed on goods entering a country.
Français: Taxe d’importation
Español: Arancel de importación

In bond:
A term applied to merchandise admitted temporarily into a country without payment of duties, either for storage in a
bonded warehouse or for trans-shipment to another point where duties will eventually be imposed.
Français: En dépôt
Español: Bajo control aduanero
In-bond industry:
An industry specialised in the processing of imported raw materials and components allowed to enter the country free
of duty, provided that they will be re-exported.
Français: Industrie en dépôt
Español: Industria de zona franca

In case of need:
A term used of the agent or representative of a shipper abroad, to whom a bank may apply for instructions if so
instructed by the shipper.
Français: En cas de besoin
Español: En caso de necesidad

Income statement (USA); Profit and loss account (UK):

The statement of revenues received and expenses incurred by a firm during a particular time period, leading to the
calculation of net income or net profit.
Français: Compte de pertes et profits
Español: Estado de pérdidas y ganancias

Income warrant:
A warrant which carries pre-agreed interest at the time of issue.
Français: Certificat d’option à revenu
Español: Warrant de ingresos

INCOTERMS:
Rules developed by the International Chamber of Commerce to standardize international trade practices, facilitate
trade and minimise misunderstandings over commercial terminology. The terms used in foreign trade contracts are
codified to define which parties incur the costs and at what specific point the costs are incurred. They are usually
referred to in the contact of sale or are implicit according to international trade practices.
Français: INCOTERMS
Español: INCOTERMS

Indemnity:
An undertaking issued by a beneficiary or his bank to reimburse a settling bank if the documents are rejected.
Français: Indemnité
Español: Indemnización, compensación, reparación

Indemnity clauses:
This refers to the indemnity provisions inserted in a lease or loan contract.
Français: Clauses d’indemnité
Español: Cláusulas de indemnización
Indexation:
An automatic revision of the nominal prices to take account of inflation. Wages, unemployment benefits, the value of
financial assets and other sources of income are revised upwards to keep in line with inflation and protect their real
value.
Français: Indexation
Español: Indización, indexación

Index futures:
Contracts for future delivery based on the development of a share or price index within a specified period. See also
Financial futures; share index.
Français: Indice sur les contrats à terme
Español: Indice de futuros

Indirect quote:
A foreign exchange quote expressed in terms of the number of units of foreign currency for one unit of domestic
currency. Also known as European terms. Compare with Direct quote.
Français: Cotation indirecte
Español: Cotización indirecta

Indirect selling:
A selling method whereby the manufacturer deals through another domestic firm before entering the international
markets.
Français: Vente indirecte
Español: Venta o exportación indirecta

Inflation Rate Coverage:

An insurance or guarantee cover which protects the supplier against a significant increase in the manufacturing costs
of capital goods, when a long lead time between the signing of the contract and the delivery of the final products is
entailed. It is also known as cost escalation coverage.
Français: Couverture du taux d’inflation
Español: Cobertura del índice de inflación, cobertura de la tasa de inflación

Inland Bill of Lading:

A bill of lading issued in connection with the transport of goods overland to the exporter's international carrier. Although
a through bill of lading may sometimes be used, it is usually necessary to prepare both an inland bill of lading and
ocean bill of lading for export shipments. Compare with air waybill, ocean bill of lading and through bill of lading.
Français: Connaissement sur l’intérieur
Español: Conocimiento de embarque terrestre
Inland Carrier:
A carrier who hauls export or import traffic between ports and inland points.
Français: Transporteur sur l’intérieur
Español: Transportista interno

Insolvency:
The inability of a borrower to honour debts when due. Opposite: Solvency.
Français: Insolvabilité
Español: Insolvencia

Inspection certification:
A statement, required by some buyers or importing countries, issued and signed by the appropriate authority (a
governmental entity or a private independent inspection company) providing evidence that the shipment has been
inspected, and giving specifications of the shipped goods.
Français: Certificat d’inspection
Español: Certificado de inspección

Instalment credit:
A loan which is repaid over time through a specified series of regular and equal instalments. Instalment credits are
often used in consumer credit, while they are relatively rare in trade financing.
Français: Crédit à tempérament
Español: Crédito para compras a plazos

Insurance:
A contract whereby the insurer undertakes to reimburse the policyholder in the event of a specified contingency or
peril, against the payment of a premium. See also export credit insurance and Export Credit Agency.
Français: Assurance
Español: Seguro

Insurance certificate:
A certificate assuring the consignee that insurance is provided to cover loss or damage to the cargo while this is in
transit.
Français: Certificat d’assurance
Español: Certificado de seguro

Intangible assets:
Intangible items such as goodwill, patents and patent rights, deferred charges, etc.
Français: Actifs intangibles, incorporels
Español: Activos intangibles, bienes inmovilizados
Inter-American Development Bank (IADB):
An international financial organization established in 1959 aimed at improving economic and social conditions in Latin
America and the Caribbean, primarily by providing funds for public projects.
Français: Banque Inter-Américaine de Développement
Español: Banco Interamericano de Desarrollo (BID)

Interbank Offered Rate (IBOR):

Also known as the interbank rate, this is the interest rate applied on short term loans between banks and which serves
as a reference rate for other types of loans, including buyer credit or supplier credit. The interest rate terms are
calculated daily and determined according to the length of and currency of the loan. A number of financial centres offer
an IBOR, including London (LIBOR), Paris (PIBOR), Singapore (SIBOR), Zurich (ZIBOR), etc. The US Federal Funds
Rate is also an example of an interbank rate.
Français: Taux interbancaire offert
Español: Tasa de oferta interbancaria, tipo de oferta interbancaria

Interbank market:
A market where banks borrow and lend to each other, usually for very short-term periods.
Français: Marché interbancaire
Español: Mercado interbancario

Interbank transactions:
Foreign exchange or lending transactions between banks as opposed to transactions between banks and non-bank
clients.
Français: Transactions interbancaires
Español: Transacciones interbancarias

Interest arbitrage:
A type of arbitrage consisting of investment in interest-bearing instruments in different currencies, with the aim of
earning a profit by taking advantage of existing or expected interest rate and exchange rate differentials.
Français: Intérêt d’arbitrage
Español: Arbitraje de intereses

Interest charge:
Interested charged i.e. negative interest. See also Negative charge.
Français: Charge d’intérêts
Español: Interest charge

Interest during construction (IDC), Pre-commissioning interest:

Interest on loans accruing during the performance of the supply contract, which are in general capitalized and added to
the principal amount outstanding
Français: Intérêts pendant la construction
Español: Intereses intercalarios

Interest make-up agreement (IMU):

An arrangement involving an export credit agency or an EXIMBANK whereby these make possible the granting of a
concessional fixed rate loan to support exporters. See also Interest Rate Equalization.
Français: Interest make-up agreement (IMU)
Español: Acuerdo de composición de los intereses

Interest rate:
(1) The rate at which interest is due on any obligation, or is paid on interest bearing assets.
(2) The interest charged to the customers of a bank for the opportunity of borrowing other people's money. Conversely
the interest paid to the bank’s customers for agreeing to lend their money to someone else.
Français: Taux d’intérêt
Español: Tipo de interés, tasa de interés

Interest Rate Coverage:

(1) The extent of coverage granted by an insurance policy or guarantee facility on loan interest specified in a
guarantee/insurance facility.
(2) Coverage against adverse fluctuations in interest rates
Français: Couverture du taux d’intérêt
Español: Cobertura del tipo de interés

Interest rate differential:

The spread between two different facilities or between spot and forward rates. (An indicator of future changes in the
spot exchange rate).
Français: Différence entre les taux d’intérêt
Español: Diferencial de los tipos de interés

Interest Rate Equalization:

A service offered by Export Credit Agencies or EXIMBANKS providing commercial banks with the difference between
the subsidized rate payable on the bank’s ECA supported loan and the bank’s market cost of funds, plus an agreed
interest spread. Also called subsidization or make-up.
Français: Egalisation des taux d’intérêts
Español: Igualación del tipo de interés

Intermediation:
An activity performed by banks and other financial institutions, aimed at matching the financial needs of certain
companies with the financial surpluses of other companies. Banks can purchase direct claims from deficit units, while
issuing secondary claims to depositors. Opposite: disintermediation.
Français: Intermediation
Español: Intermediación

Intermediate consignee:
The bank, forwarding agent or other intermediary, acting as agent in the foreign country on behalf of the exporter,
purchaser or ultimate consignee, charged with the delivery of the exported merchandise to the ultimate consignee.
Français: Consignataire intermédiaire
Español: Consignatario intermedio

Intermodal transport:
The ability to use different means of transport for a shipment, such as from ship to train to truck etc.
Français: Modes de transport multiples
Español: Transporte multimodal, transporte plurimodal, transporte combinado

Internal rate of return:

A measure used in project evaluation. It is the annual percentage of profitability on the initial investment.
Français: Taux de rendement interne
Español: Tasa de rentabilidad interna (TRI)

International Bank for Reconstruction and Development (IBRD):

A multi-government owned bank, set up in 1945 as part of the World Bank group. It aims to promote projects in
developing countries, primarily in infrastructure and agriculture, through the extension of low interest rate loans and
guarantees on private loans.
Français: Banque Internationale pour la Reconstruction et le Développement (BIRD)
Español: Banco Internacional de Reconstrucción y Fomento (BIRF)

International Chamber of Commerce:

A private, politically independent organization set up in 1919 in Paris, France, to facilitate and improve trade and
business relations between countries. It also represents private business interests at national and international levels.
Its activities include the definition of INCOTERMS.
Français: Chambre Internationale de Commerce
Español: Cámara de Comercio Internacional (CCI)

International Development Association (IDA):

A multi-government owned organization of the World Bank group to which industrialised countries assign funds to be
lent to developing countries on more liberal terms than ordinary development loans. The IDA provides soft loans, i.e.
loans which bear no interest and with long repayment periods.
Français: Association Internationale de Développement
Español: Asociación Internacional de Fomento
International Finance Corporation (IFC):
Established in 1956, it is a member of the World Bank group and provides loans to promote private sector investment
in LDCs and developing countries. The loans are extended at market rates and the IFC seeks profitable returns from
its investments.
Français: Société Internationale de Financement
Español: Corporación Financiera Internacional

International Monetary Fund (IMF):

A multi-government organization established in 1945 at Bretton Woods, it is the most important organization for
international monetary policy co-operation. It acts as the banker of last resort for countries experiencing foreign
exchange deficiencies and balance of payments deficits, and monitors the monetary and foreign exchange policies of
its member states. Each member of the IMF has a quota, expressed in Special Drawing Rights, which determines its
voting power and access to the Fund’s financial resources. See also World Bank and Group of Ten.
Français: Fonds Monétaire International (FMI)
Español: Fondo Monetario Internacional (FMI)

International Standards Organization (ISO):

Established in 1947 in Geneva as a world-wide federation of national standardisation bodies, the ISO is a system for
the establishment of voluntary quality standards at international level. For instance, ISO 9000 is the general name for
the quality standard accepted within the European Community, covering activities such as design, development,
production, installation, servicing, inspection, testing, etc.
Français: Organisation internationale de normalisation (ISO)
Español: Organización Internacional de Normalización (ISO)

International Trade Administration:

A US Department of Commerce agency providing assistance to US exporters.
Français: Administration du Commerce International
Español: Administración de Comercio Internacional

Inventory:
Raw materials, work-in-progress and goods ready for sale. In the UK the word stock is generally used instead.
Inventories may be valued individually using various techniques such as cost or current market value, or collectively
using FIFO or LIFO techniques. In securities companies, the term inventory refers to securities bought and held by a
broker or dealer for resale.
Français: Inventaire
Español: Existencias

Inventory-turnover ratio:
A measure of management’s control of its investment in inventory, i.e. the speed inventory is produced and sold. It is
measured as the ratio of annual sales to average inventory. A low ratio is an unhealthy sign, indicating excess stocks
and/or poor sales.
Français: Ratio Inventaire/chiffres d’affaires
Español: Razón de movimiento de existencias
Investment bank:
A financial intermediary specialised in offering a variety of services, such as acting as a broker in share and bond
deals, underwriting new security issues, facilitating mergers and other corporate reorganizations, providing long-term
loans and/or equity capital, etc., rather than in lending out its own funds. More specifically, the term refers to US banks
like Merrill Lynch, Goldman Sachs and Salomon Brothers which underwrite and deal in securities and do not take
deposits directly from the public. In the UK investment banks are frequently known as Merchant banks.
Français: Banque d’investissement
Español: Banco de inversiones

Investment Fund:
A holding company usually managed by an investment banker which collects savings from investors to be used to
acquire participation in agreed sectors and countries.
Français: Fonds d’investissement
Español: Fondo de inversión

Investment paper:
Securities which are particularly suitable for long term investments.
Français: Papier (effet) d’investissement
Español: Efecto de inversión

Investment risk guarantee:

A guarantee scheme, usually government-operated, covering part of the risks connected with investments abroad.
Français: Garantie pour le risque relatif à l’investissement
Español: Garantía contra riesgos de inversión

Invisibles/Invisible trade:
Non-merchandise trade, including transport services (freight, shipping, etc.), most types of services (banking,
insurance, tourism etc.) and investment.
Français: Invisibles/Commerce Invisible
Español: Invisibles, comercio de invisibles, comercio invisible

Irrevocable:
An agreement which cannot be cancelled unless all the parties concerned agree to do so. For instance, an irrevocable
letter of credit, once issued, cannot be amended or cancelled without the agreement of all the named parties.
Français: Irrévocable
Español: Irrevocable

Irrevocable Letter of Credit:

See letter of credit.
Français: Lettre de Crédit Irrévocable
Español: Carta de crédito irrevocable

Irrevocable Negotiable Letter of Credit/Documentary Credit:

A payment technique whereby the issuing bank's engagement is extended to third parties who negotiate or purchase
the beneficiary's draft/documents presented under the documentary credit. This assures anyone who is authorized to
negotiate the draft/documents that they will be duly honoured by the issuing bank, provided the terms and conditions
of the documentary credit are fulfilled. A bank which effectively negotiates the draft/documents buys them from the
beneficiary, thereby becoming a holder in due course.
Français: Lettre de Crédit Irrévocable Négociable/ Crédit Documentaire
Español: Carta de crédito irrevocable y negociable

Irrevocable Straight Letter of Credit/Documentary Credit:

A payment technique implying that the obligation of the issuing bank is extended only to the beneficiary in honouring
the draft/documents and usually expires at the counter of the issuing bank. This kind of Documentary Credit carries no
commitment or obligation by the issuing bank towards any person other than the named beneficiary.
Français: Lettre de Crédit Irrévocable Nominative/ Crédit Documentaire
Español: Carta de crédito directa e irrevocable

ISO:
See International Standards Organization.
Français: ISO
Español: ISO

Issue price:
The price at which shares or bonds are first issued to the public. See also At par, Below par.
Français: Prix d’émission
Español: Precio de emisión

Issued share capital:

The amount of share capital of a company, at par value, which has been subscribed by shareholders.
Français: Capital action émis
Español: Capital social emitido, capital accionario emitido

Issuer; borrower:
A private corporation or public authority raising funds for its own use by issuing and selling securities on the public
market.
Français: Emetteur, emprunteur
Español: Emisor
 Issuing bank:
A bank which opens a letter of credit, thereby assuming the obligation to pay the beneficiary or the correspondent
bank if the documents presented are in accordance with the terms of the letters of credit.
Français: Banque émettrice
Español: Banco emisor

J
J-curve:
A graphic description of the evolution of a country's current account balance following a devaluation. With devaluation,
the cost of exports decreases while that of imports increases. As it takes time for the volumes of exports and imports
to adjust to the new relative prices, the current account may initially worsen before improving in response to the
devaluation of exchange rates.
Français: Courbe J
Espa ٌ◌ol: Curva en J, curva en forma de J

Joint and several guarantee:

A guarantee by which the guarantor or guarantors commit themselves jointly and severally with the principal debtor.
The guarantor or guarantors may each be sued independently of the principal debtor.
Français: Garantie conjointe et solidaire
Espa ٌ◌ol: Garant‫ي‬a mancomunada y solidaria

Joint guarantor:
A guarantor who jointly and severally pledges to become legally liable for the debt or default of another person. Legal
entities can also act as a joint guarantor. Also known as joint surety.
Français: Garant solidaire
Espa ٌ◌ol: Garante solidario, avalista solidario

Joint Venture:
A business undertaking between two or more companies or organizations which will share ownership and control of
the joint company’s activities.
Français: Entreprise en participation
Espa ٌ◌ol: Empresa conjunta, empresa mixta, operaci َ◌n conjunta, proyecto mixto, proyecto en com ْ◌n, proyecto de
riesgos compartidos

Junior creditors:
Second-line creditors in case of a debtor’s default, vis-à-vis senior creditors who have priority in the distribution of
assets.
Français: Créanciers de rang inférieur
Espa ٌ◌ol: Acreedor no prioritario
 Junk bonds:
High-risk bonds issued by companies with credit ratings below investment grade (a ranking given by the credit rating
agencies). Such bonds are also called high-yield bonds as they offer investors higher yields than bonds of financially
sound companies. They are usually issued to finance leverage buy-out operations.
Français: Obligations à haut risque
Espa ٌ◌ol: Bono basura

Just-in-time (JIT):
A manufacturing system which minimises inventories by arranging that components and parts be delivered as they are
needed in the production process.
Français: Juste à temps
Espa ٌ◌ol: Justo a tiempo (JAT)

L
Lag strategy:
A foreign exchange management strategy consisting of delaying payments or receipts in a foreign currency, on the
expectation of the evolution of the foreign exchange rate. Opposite: Lead strategy.
Français: Stratégie de retardement
Español: Estrategia de atraso

Latin American Integration Association (LAIA):

A regional economic and trade integration agreement involving most Latin American nations.
Français: Association d’intégration des pays d’Amérique Latine
Español: Asociación Latinoamericana de Integración (ALADI)

Last in, first out (LIFO):

LIFO is a method of evaluating and calculating a company's inventories (stocks, in the UK). See also First in, first out
(FIFO).
Français: Dernier entré-premier sorti
Español: (método de) Ultima entrada, primera salida (UEPS)

L/C:
Abbreviation for Letter of credit.
Français: L/C
Español: L/C

Lead strategy:
The opposite of the lag strategy defined above. This strategy implies that firms will pay off foreign currency debts and
collect foreign currency receipts early. This, typically, because the local currency is expected to weaken.
Français: Stratégie d'anticipation
Español: Estrategia de adelanto

Leasing:
A contract whereby an asset is supplied by its owner (the lessor) to another party (the lessee) for a specific period
(usually long term), in return for periodic compensation (lease payments). The lessor retains title to the asset, while the
lessee acquires the right to use it during the specified time without acquiring ownership rights. Leasing is an indirect
form of financing, as it permits the use of an asset whose purchase would otherwise have had to be financed by a
loan. It also entails fiscal advantages compared with long-term loans. Leasing contracts are usually signed for the use
of industrial equipment, facilities and capital goods (such as machines, technical installations, vehicles, etc.).
International leasing is a form of financing increasingly used in the export of equipment.
Français: Crédit-bail
Español: Arrendamiento financiero

Legal lien:
See Lien.
Français: Droit de rétention
Español: Legal lien

Lending limit:
The maximum value of a particular asset which may be used as collateral for a loan or mortgage (sometimes
expressed as a percentage of the asset’s total value).
Français: Limite de crédit
Español: Límite de crédito

Letter of credit (L/C):

A financial document issued by an issuing bank at the request of a buyer (applicant) to a seller (beneficiary), which
guarantees payment to the seller if the terms and conditions specified in the L/C are fulfilled. It usually contains a brief
description of the goods, the documents required, shipping date and an expiry date after which payment will no longer
be made. There are different types of L/C, according to the level of security they grant the beneficiary (seller/exporter).
(1) Irrevocable Letter of Credit: This can neither be modified nor cancelled without the agreement of all the parties
concerned. The payment by the issuing bank is guaranteed provided that the beneficiary (seller/exporter) satisfies all
the terms and conditions of the L/C.
(2) Revocable Letter of Credit: This may be modified or cancelled by the issuing bank at any time and without notice to
the beneficiary. However, payments or drafts negotiated within the terms of the credit before receipt of the revocation
or amendment notice from the issuing bank remain validly binding for all parties. Negotiability is restricted to the
advising bank and confirmation is usually not available. The revocable letter of credit gives maximum flexibility to the
buyer but involves risks for the seller.
(3) Confirmed Irrevocable Letter of Credit: A L/C in which the responsibility of another bank (the confirming bank,
which is usually the same as the advising bank) has been added to that of the issuing bank, upon authorization or
request of the latter. The confirmation represents a definite undertaking by the confirming bank, which obligates itself
in the same manner as the issuing bank. It is used to back up the credit standing of the issuing bank and to mitigate
risk by replacing a foreign bank risk with a domestic bank risk.
(4) Irrevocable Unconfirmed Letter of Credit: A L/C which has been advised through an advising bank, acting as an
agent of the issuing bank, without however assuming any responsibility towards the beneficiary except for taking
reasonable care to check the apparent authenticity of the documentary credit which it advises.
(5) Revolving Letter of Credit: A type of L/C issued only once and through which the money made available to the
seller, after being drawn within a stated period of time, will again become available in the future, usually under the
same terms and without another L/C being issued. This type of credit is used in connection with regular and ongoing
purchases from a foreign supplier. Revolving L/Cs may be revocable or irrevocable, and the revolving element may be
linked to time and/or value.
(6) Documentary Letter of Credit: A L/C where the issuing bank stipulates that certain documents should accompany
the draft. These documents assure the applicant (buyer/importer) that the merchandise has been shipped, is in good
condition and that title to the goods has been transferred to the importer.
(7) Negotiable Letter of Credit: A L/C issued in such form that it allows any bank to negotiate the documents.
See also Irrevocable Negotiation Letter of Credit, Irrevocable Straight Letter of Credit, Back-to-Back letter of credit,
Red Clause credit, Green Clause credit, Standby Letter of Credit.
Français: Lettre de crédit (L/C)
Español: Carta de crédito

Letter of Credit -Traveller’s (circular):

A L/C issued on behalf of a customer who plans to travel extensively. The customer pays for the L/C when it is issued
and can request payments from the correspondent banks indicated by the issuing bank, during a specified period of
time. The correspondent banks will honour the drafts up to the amount of credit. Each bank which honours a draft
endorses the L/C with the date the payment was made, the bank's name, the amount drawn against the L/C and the
charges to the issuing bank's account. See also Advised L/C.
Français: L/C lettre de voyage circulaire
Español: Carta di credito - Traveller's

Leverage:
A US term to indicate the degree to which a business is funded by loans rather than by shareholders' equity (i.e. the
indebtedness of a firm compared to its equity structure). This is equivalent to gearing in UK terms.
Français: Effet de levier
Español: Apalancamiento financiero

Leveraged buy-out (LBO):

The take-over/acquisition of a company, financed largely by debt (i.e. loans and bonds) rather than equity. The loans
extended and the bonds issued to finance the take-over are usually secured against the assets and cash flow of the
target company (i.e. being bought). Due to the large amount of debt relative to equity in the newly bought company, its
bonds are typically junk bonds.
Français: Acquisition par effet de levier
Español: Compra apalancada de empresas

Leveraged lease:
A Lease arrangement whereby the lessor borrows a large proportion of the funds needed to purchase an asset and
then grants the lender a Lien on such asset, together with pledging the
lease payments to secure the borrowing.
Français: Bail à effet de levier
Español: Arrendamiento apalancado
Liabilities:
A company’s obligations towards its creditors, suppliers, customers etc., as distinguished from those to its owners,
partners or shareholders. Liabilities consist of borrowed funds and must be paid in the short-, medium- or long-term.
Short-term debts, bank loans and overdrafts are often known as current liabilities. With reference to banks, their
liabilities are made up of deposits, bonds and bills. Opposite: Assets.
Français: Dettes
Español: Pasivos, obligaciones

Liability on bills of exchange:

A liability created by the signature on the bill of Exchange .
Français: Dette sur lettre de change
Español: Obligaciones basadas en la letra de cambio

LIBID:
An abbreviation for London Interbank Bid Rate (interbank rate), i.e. the rate paid by a first-rate bank on time deposits
from other first-rate banks.
Français: LIBID
Español: LIBID

LIBOR:
See London Inter Bank Offer Rate.
Français: LIBOR
Español: LIBOR

Licensing agreement:
A business agreement whereby one firm gives another the right to use assets such as trademarks, patents, copyrights
or other know-how, against the payment of a fee.
Français: Contrat de licence
Español: Acuerdo sobre concesión de licencia

Licensing arrangement (in trade):

A procedure requiring potential importers or exporters to secure permission from government authorities in order to be
able to conduct trade transactions.
Français: Disposition relative à la licence (dans le commerce)
Español: Acuerdo de licencia

Lien:
A legal term indicating the right or claim of a creditor against the property of a debtor in connection with secured debt
financing. The creditor is entitled to hold such property until the debt is paid or some other obligation is fulfilled.
Français: Privilège, Droit de rétention, Nantissement
Español: Gravamen, prenda, privilegio
Lien in rem, right of lien:
A restricted right to hold and retain a property until the creditor’s claim is satisfied. If the claim is not met, the creditor is
entitled to realize the property securing the lien and satisfy his claim out of the resulting proceeds.
Français: Droit de rétention
Español: Derecho prendario, derecho de retención

LIFFE (London International Financial Futures Exchange):

An exchange market dealing in futures contracts (on currencies, commodities, stocks, bonds, treasury bills, etc.).
Standardized financial futures have been traded on this exchange since 1982.
Français: LIFFE (London International Financial Futures Exchange)
Español: LIFFE (London International Financial Futures Exchange)

LIFO:
See Last in, first out.
Français: LIFO
Español: LIFO

Lighter:
A vessel transferring cargo between ship and shore, used mainly in harbours and inland waterways.
Français: Allège, Péniche
Español: Barcaza, gabarra

Lighterage:
The cost of loading or unloading a vessel by barges.
Français: Déchargement par allèges
Español: Gabarraje

Limit:
(1) The highest/lowest acceptable price for the purchase/sale of securities, where the transaction may be conducted
either directly or through a broker. Price limits are set to avoid the danger of adverse or unexpected price changes.
(2) The upper limit for the utilization of a line of credit.
Français: Limite
Español: Límite

Limited recourse financing:

A financing technique for major capital projects where the lender's decision to extend funds is based mainly on the
project's assets as collateral and the expected cash flows and earnings as a source of funds for repayment, rather
than on the general creditworthiness of the borrower.
Français: Financement à recours limité
Español: Financiamiento con derecho de recurso limitado

Line of credit:
A credit arrangement whereby the bank puts at its client’s disposal a maximum loan balance and agrees to finance
within this balance several contracts subsequently entered into by the client. Lines of credit may set up for
miscellaneous capital goods purchases (usually known as general purpose lines of credit) or for contracts associated
with one project (usually known as project lines of credit).
Français: Ligne de crédit
Español: Line of credit

Liquid assets:
Assets which can be readily and cheaply turned into cash, notably cash itself and short-term securities.
Français: Actifs liquides
Español: Activos líquidos, valores realizables a corto plazo, disponibilidades líquidas, haberes líquidos, fondos
líquidos

Liquidation:
(1) The dissolution of an asset or of a company through its sale to settle outstanding debts.
(2) The settlement of forward or future transactions on the corresponding market.
Français: Liquidation
Español: Liquidación

Liquidity:
The speed with which a financial asset may be liquidated. Within a company, it refers to the availability of liquid funds,
which may be used to honour its payment obligations on time or to finance new projects. In a broader sense, it refers
to the width of a country’s financial markets: a market is said to be liquid when the level of trading activity is high, thus
allowing buying and selling with minimum price disturbance.
Français: Liquidité
Español: Liquidez

Liquidity Adequacy:
This indicates whether the institution has met pre-set liquidity standards and ratios for that particular sector of activity.
Liquid assets are graded according to their marketability and liquidity risk.
Français: Suffisance de liquidités
Español: Suficiencia de liquidez

Liquidity preference:
The inclination of individuals and corporations to keep their assets in varying degrees of liquidity. One argument is that
greater liquidity allows better investment flexibility at times of market upheaval.
Français: Préférence pour les liquidités
Español: Preferencia por la liquidez

Liquidity ratios:
These are ratios which measure a firm's liquidity, i.e. its ability to meet its short-term financial obligations on time, such
as the acid test or current ratio. In banking these refer to the ratios set by the Central Bank, requiring that commercial
banks keep a certain share of their assets in liquid form (e.g. cash and short-term marketable instruments such as
Treasury bills) in order to meet day-to-day demands for cash.
Français: Rapports, ratios de liquidités
Español: Coeficientes de liquidez

Liquidity risk:
The risk arising from the difficulty of liquidating (i.e. selling) an asset. It consists of the difference between the true
value of the asset and the likely sale price, less commissions.
Français: Risque de liquidité
Español: Riesgo de liquidez, riesgo de tesorería

Listed stocks:
Stocks which are traded on an exchange.
Français: Actions cotées
Español: Acción registrada en bolsa, cotizada en la bolsa

Loan against pledge:

A loan secured by the pledging of collateral, such as securities, merchandise, etc.
Français: Prêt contre nantissement
Español: Préstamo contra prenda

Loan against pledged bill:

A loan secured by the pledging of a bill of Exchange , blank endorsed by the customer.
Français: Prêt contre nantissement d'effets
Español: Préstamo contra letras en prenda

Loan stock:
That part of a company's capital which is raised through interest-bearing long-term loans and the issue of bonds. See
Debenture. Compare with Equity.
Français: Emprunt obligataire
Español: Obligación sin garantía

Local bill:
A bill of Exchange accepted by a bank for collection or discounting, which is payable where the accepting bank is
located.
Français: Effet local
Español: Letra nacional

Local costs:
The costs incurred by the supplier in the buyer's country for locally sourced goods and services, necessary for the
performance of the export sales contract. These costs are not usually covered by Export Credit Agencies' finance and
guarantees.
Français: Coûts locaux
Español: Costo en moneda nacional

Lombard loan (UK); Collateral loan (USA):

A loan granted against the pledging of securities (broker's loan) or goods (advance against goods as security). It
carries interest based on the Lombard rate.
Français: Prêt Lombard (GB), Prêt garanti (USA)
Español: Lombard préstamos

Lombard rate:
An interest rate used for private credit lines (Lombard loan). In some countries the rate is published.
Français: Taux Lombard
Español: Tasa Lombard; Tasa de préstamos con garantía prendaria

Lomé Convention:
An agreement concluded at Lomé, Togo in 1975, to which several additional agreements have subsequently been
added. The Convention enables market access preferences, as well as a package of technical and financial
assistance programmes, to be extended by the European Union to African, Caribbean and Pacific (ACP) countries
(mostly former colonies of the EU members).
Français: Convention de Lomé
Español: Convenio de Lomé

London Club:
A creditor cartel of private commercial banks, set up in the early ‘80s to deal with debt rescheduling. The Paris Club,
while also concerned with debt repayment from developing countries, is an association of official creditors.
Français: Club de Londres
Español: Club de Londres

London Interbank Offered Rate (LIBOR):

The London interbank base borrowing rate, i.e. the interest rate for large interbank transactions in the international
banking market (e.g. Eurodollars and Eurocurrency markets). It is a floating rate, varying according to market
conditions and depending upon the loan period as well as the currency of reference (usually specific periods of time,
such as one, three or six months). See also Interbank Offered Rate.
Français: Taux interbancaire offert à Londres
Español: Tipo de interés interbancario en el mercado de capitales de Londres (LIBOR)

London International Financial Futures Exchange:

See LIFFE
Français: London International Financial Futures Exchange
Español: London International Financial Futures Exchange

Long hedge:
The purchase of a futures contract in anticipation of the actual purchase on the cash market. It is frequently practised
by processors or exporters as a protection against an increase in the cash price. Opposite of Short hedge. See also
Hedge.
Français: Acheter à terme
Español: Cobertura con posición larga

Long position:
In the securities or commodity trade, the position of owning or holding more of a given security or commodity than one
has contracted to deliver in future (i.e. the number of contracts bought exceeds the number of contracts sold). One
goes long in the expectation that prices will rise, so as to realize a profit from the sale of the underlying security or
commodity. Opposite: short position.
Français: Position en titres ou en devises
Español: Posición larga

Long term:
Usually any credit period over five years.
Français: Long terme
Español: Largo plazo

Long-term debt:
For a development bank this refers to obligations (such as loans and bonds) with a maturity of more than five years
from the date of issue. For a commercial bank long-term debt is that of one year or longer.
Français: Dette à long terme
Español: Deuda a largo plazo

Long-term debt ratio:

An indicator of financial gearing/leverage. It is determined by dividing long-term debt by the capital available, i.e. the
sum of long-term debt, preferred shares and common shareholder equity.
Français: Ratio d'endettement à long terme
Español: Coeficiente de endeudamiento a largo plazo
 Longs:
British government securities (gilts) with a maturity of more than fifteen years.
Français: Longs
Español: Largo

Loro account:
An old fashioned name for vostro account.
Français: Compte Loro
Español: Cuenta loro

Lump sum:
A fixed sum agreed at the initiation of a contract, payable for the performance of a specific task. It is frequently used to
define payment for services.
Français: Somme globale/forfaitaire
Español: Suma global, monto global, suma fija

M
Management Fee:
A fee charged by a commercial bank or an ECA for the arrangement of a financial facility. Sometimes called
arrangement fee or negotiation fee.
Français: Honoraires, commission de direction
Español: Comisión de dirección, comisión de gestión

Manufacturing period:
The period during which goods are manufactured, extending from the signature of the contract to the shipment of the
final items.
Français: Période de fabrication
Español: Tiempo de fabricación

Margin:
(1) In banking, the difference between the bank’s interest rate applied on lending and that applied on deposits (also
known as spread).
(2) On the exchange market, the difference between the market value of a security and the loan which investors can
raise through a broker, where the loan funds will be used to purchase such a security.
(3) The lending limit, a percentage of the total assets pledged for Lombard loans.
Français: Marge
Español: Margen
Margin account:
An account with which securities can be purchased by a combination of cash and loans. Such loans are collateralized
by the security and, if the value of the security drops significantly, the owner will be asked to put more cash into the
account or sell a portion of the security.
Français: Compte de marge
Español: Cuenta de margen, cuenta de adelantos

Margin call:
A demand by a securities broker or a futures clearing house for additional funds to offset position losses on a margin
account for securities or financial futures.
Français: Appel de marge
Español: Cobertura complementaria, margen complementario

Marine Insurance:
An insurance covering loss or damage of goods at sea. Marine insurance will compensate the owner of the goods for
losses sustained due to fire, shipwreck, piracy and various other causes, beyond those losses which can be legally
recovered from the carrier. The most common types of marine insurance coverage are the All Risk Coverage, Free of
Particular Average and With Average.
Français: Assurance maritime
Español: Seguro marítimo

Market access:
The openness of a national market to foreign products, reflecting the government's willingness to allow imports to
compete freely with domestically produced goods and to limit the existence of barriers to free trade.
Français: Ouverture du marché
Español: Accesibilidad del mercado

Market discount rate:

Also called private discount rate. See prime rate.
Français: Taux d'escompte du marché
Español: Market discount rate

Market disruption:
When a flow of imports of a particular product prompts a significant decline in the sales of domestically produced
goods, causing major economic difficulties for domestic producers.
Français: Rupture du marché
Español: Desorganización del mercado, perturbación del mercado

Market maker:
A Dealer who buys and sells securities for his own account, without necessarily being immediately able to match a
buyer and a seller. Market makers can have a major influence on trading.
Français: Teneur de marché
Español: Creador de mercado

Market value:
The price at which goods or securities are traded on the market (in the case of shares or bonds the reference market
is the stock exchange). It may also refer to the value investors believe a firm to be worth, calculated as the number of
outstanding shares multiplied by the price at which shares are traded on the market.
Français: Valeur du marché
Español: Valor de mercado, valor de venta, cotización

Marketable:
A term indicating securities or other assets which can be easily sold or otherwise liquidated. In the case of securities,
good marketability implies the existence of an active secondary market within which they may be easily resold.
Français: Négociable
Español: Negociable, comerciable

Marketable collateral:
A security pledged as collateral which can be easily sold (such as stocks and bonds listed on a stock exchange).
Opposite: Non-marketable collateral.
Français: Garantie négociable
Español: Garantía corriente, garantía negociable

Matching:
In banking, this indicates the ability of a bank to match a loan by taking a deposit of the same maturity. A bank with
matched books is one where the distribution of maturities of its assets and liabilities are the same. In export credit
insurance, the term refers to the capacity of an export credit agency to match the credit terms and conditions offered
by the ECA of another country, under the Consensus arrangement.
Français: Appariement
Español: Contrapartida, adaptación

MATIF (Marché à Terme International de France):

A securities and commodities' futures market in France.
Français: MATIF
Español: MATIF

Maturity date:
The date when a note, draft, acceptance, loan or a debt in general becomes due for payment. For a bond, it indicates
the date when the principal is required to be repaid. See also Due date.
Français: Date d'échéance
Español: Fecha de vencimiento (del plazo), fecha de cumplimiento
Maximum coverage:
The highest percentage of a loan principal which can be guaranteed or insured.
Français: Couverture maximum
Español: Cobertura máxima

Mean commissioning:
The date on which 50% of the value of the capital goods contracted to be commissioned and delivered to the buyer,
have been delivered.
Français: Mise en exploitation moyenne
Español: Comisión media

Mean delivery:
The date by which 50% of the value of the goods to be delivered or the services to be rendered, have actually been
delivered or rendered.
Français: Livraison moyenne
Español: Entrega media

Medium term:
Usually any credit period of between two to five years.
Français: Moyen terme
Español: Plazo medio

Merchandise trade balance:

The balance between a country’s imports and exports of goods within its overall balance of payments. Also known as
balance of trade.
Français: Balance commerciale des marchandises
Español: Balanza comercial

Merchant bank:
A financial institution whose financial business gradually evolved from its merchant business. The merchant banker's
local knowledge of the countries with which they traded made them specialists in estimating the creditworthiness of
their customers, which in turn enabled them to accept bills of exchange and arrange loans at the request of foreign
traders. Their business has extended beyond normal banking transactions to include dealings in foreign exchange, the
issue of long-term loans for governments and companies abroad, advice to companies, underwriting of new issues,
management of takeover bids, engagement in insurance business, investment trust management, etc. See also
investment bank.
Français: Banque d'affaires
Español: Banco comercial, banco de inversiones, banco de negocios

Mercosur:
A regional trade agreement set up in 1994 between Argentina, Brazil, Paraguay and Uruguay. It is modelled on the
European Community and has established a common external tariff and eliminated most barriers to trade in services.
Français: Mercosur
Español: Mercosur

MITI:
The Ministry of International Trade and Industry in Japan. It also acts as the Export-Import bank of Japan.
Français: MITI
Español: MICI

Mixed Credit/Mixed loan:

Export credits combining concessional and market-rate financing, extended as an export promotion mechanism. The
loan will consist of a tranche offered on preferential terms (government tranche, concessional rate) and a tranche on
market conditions (bank tranche, market rate). The concessional component reflects the presence of an aid element,
either in the form of a grant or of subsidized interest rates. Under the Consensus, if the aid portion is greater than 25%
of the total credit then the whole financial arrangement is considered aid. Mixed loans are generally granted on
transactions with economically weak countries in order to promote exports and facilitate trade relations. See also
Concessionality level and Grant element.
Français: Crédit mixte/Prêt mixte
Español: Crédito mixto

Mixed venture:
A joint venture between the government and a private company.
Français: Société en participations mixtes
Español: Inversión mixta

Modaraba:
An Islamic financing contract enabling Islamic financial institutions to provide funds to any client who would like to start
an entrepreneurial activity but without the financial strength required. The institution is entitled to the profit of the
activity, while the client receives a percentage of this profit as a fee for the know-how and management services
provided.
Français: Modaraba
Español: Modaraba

MONEP (Marché des Options Négotiable de Paris):

A French market dealing with negotiable options contracts.
Français: MONEP
Español: MONEP

Monetary assets:
Assets denominated in monetary terms or with a face value (cash, account receivables, bonds etc.). Non-monetary
assets on the other hand include assets such as land, buildings and equipment.
Français: Actifs monétaires
Español: Activo monetario

Money loan:
A financing arrangement whereby the bank extends payments directly, such as in the form of loans or discount credit.
Opposite: Guarantee credit.
Français: Prêt monétaire
Español: Préstamo en dinero

Money market:
The market for lending or borrowing short-term funds and dealing in negotiable instruments and securities (such as
treasury bills and commercial paper). In addition to the national money markets, the Euromoney market has developed
in recent years into an efficient international market place for dealing in short-term funds. Compare with Capital
market.
Français: Marché monétaire
Español: Mercado del dinero, mercado monetario

Moody's:
A credit rating agency.
Français: Moody's
Español: Moody’s

Mortgage:
The written transfer of title to some specified real estate property, but not of its possession, to secure the payment of a
debt or the performance of some obligation. See also Lien.
Français: Hypothèque
Español: Hipoteca

Mortgage bank:
A bank specialized in granting mortgage loans. See also Mortgage note.
Français: Banque hypothécaire
Español: Banco hipotecario, sociedad de crédito hipotecario

Mortgage loan:
A loan secured by a mortgage on real estate property as collateral, which obliges the borrower to make a
predetermined series of payments.
Français: Prêt hypothécaire
Español: Préstamo hipotecario
Mortgage note:
A security with repayments spread over an agreed long period of time
Français: Cédule hypothécaire
Español: Cédula hipotecaria

Most Favoured Nation Treatment (MFN):

A GATT term indicating a country’s commitment to extend the trade concessions applied to a particular trading partner
to all the other countries eligible for MFN treatment. Thus, when a country cuts tariffs on a particular product imported
from one country, this tariff reduction automatically applies to imports of this product from any other country eligible for
MFN treatment.
Français: Traitement de la nation la plus favorisée
Español: Trato de la nación más favorecida, trato NMF

Multi-currency credit line:

An internationally used financial expression for a credit line which the borrower may draw in one or several of the
currencies mentioned in the credit agreement.
Français: Ligne de crédit multi-monnaies
Español: Línea de crédito con múltiples divisas, línea de crédito multidivisas

Multilateral Investment Fund:

This provides grants to promote market-oriented investment policy initiatives and reforms, encouraging domestic and
foreign investment in Latin America and the Caribbean. The Fund complements the activities undertaken by the Inter-
American Development Bank.
Français: Fonds d'investissement multilatéral
Español: Fondo Multilateral de Inversiones

Multilateral Investment Guarantee Agency (MIGA):

Set up in 1988 as part of the World Bank Group, to encourage equity and other types of direct investment flows
towards developing countries. It provides investors with coverage and guarantees against non-commercial risks, and
advises local governments in developing countries on policies and programmes to foster foreign investments.
Français: Agence multilatérale de garantie d'investissement
Español: Organismo Multilateral de Garantía de Inversiones (OMGI)

Multinational corporation:
A company which owns and controls subsidiaries and plants outside the country in which it is based. Being present in
many different countries enables it to use world resources where they are cheaper and of higher quality, to service
many different national markets and to reduce risks by diversification.
Français: Multinationale
Español: Empresa multinacional, empresa transnacional

Multiple exchange rate system:

 A system by which the government sets different exchange rates for different transactions.
Français: Système de taux de changes multiples
Español: Sistema de tipos de cambio múltiples

Multilateral Lending Agency:

A general term indicating a financial institution jointly owned by a group of countries and designed to promote
international and regional economic co-operation. Examples include the Asian Development Bank, the African
Development Bank, the World Bank through the International Bank for Reconstruction and Development, the
International Finance Corporation, etc.
Français: Agence de prêt multilatérale
Español: Organismo multilateral de crédito

Multi sourcing:
An expression used to describe the provision of inputs (in the form of goods or services) from a number of different
countries
Français: Ressources multiples
Español: Suministro múltiple

Mutual fund:
A pool of money managed by an investment company, offering investors a variety of services according to the fund’s
investment strategy and policy. For instance, some funds seek to generate a regular income for their investors, some
are set up to preserve investors' money, while others prefer to invest in rapidly growing and risky companies.
Français: Fonds de placement
Español: Fondo (común) de inversión

N
NASDAQ:
The National Association of Securities Dealers Automated Quotations System. This is the electronic quotation and
computerized trading system in the United States for over-the-counter securities.
Français: NASDAQ
Español: NASDAQ

NAFTA:
See North American Free Trade Agreement.
Français: NAFTA
Español: NAFTA

National interest account:

The account under which an Export Credit Agency agrees to cover those transactions which would not be considered
eligible on the basis of its normal criteria, for instance because of the size of the risk connected with the transaction.
Coverage is extended with the support of the government, when the transaction is seen as beneficial or of special
interest to the national economy.
Français: Compte d'intérêt national
Español: Cuenta de interés nacional

National Treatment:
When foreign companies are given the same competitive opportunities, including market access, and are subject to
the same legal framework as domestic companies.
Français: Traitement national
Español: Trato nacional

Nature of buyer:
A term referring to the type of corporate ownership, as this may affect the credit risk (commercial or political) and the
guarantee/insurance fees. The buyer can thus be private (private companies and public sector buyers without full faith
and credit status) or public (government agencies and other public buyers with full faith and credit status).
Français: Nature de l'acheteur
Español: Características del comprador

Negative amortization:
A loan repayment schedule whereby the outstanding principal balance increases, rather than being amortized,
because the scheduled periodic payments do not cover the full amount required to amortize the loan. The unpaid
interest is added to the outstanding principal, for repayment at a later stage.
Français: Amortissement négatif
Español: Amortización negativa

Negative interest or interest charge:

Interest which is deducted from the principal.
Français: Intérêt négatif ou charge d'intérêt
Español: Gastos (fiscales) por concepto de intereses

Negotiating bank:
In a letter of credit, the bank which accepts the documents for examination and, if these are found in order, credits the
due amount to the beneficiary.
Français: Banque négociatrice
Español: Banco negociador

Negotiation fee:
Also known as management fee, thus is a once-only fee for the arrangement of a financial facility by an ECA or a
commercial bank.
Français: Honoraires, commission de négociation
Español: Negotiation fee

Negotiable instrument:
A financial instrument which may be transferred from one owner to another without informing the original issuer. It
provides evidence of the debt, and the holder of the instrument acquires legal title to the goods or property regardless
of whether the previous holder had a defect in his title. Negotiable instruments include bank notes, bearer bonds,
cheques, certificates of deposit, etc.
Français: Instrument négociable
Español: Instrumento negociable

Net:
The opposite of Gross. This refers to what is left after the applicable deductions have been made. For instance, Net
profit/Net income indicates income after tax. Net cash flow is a company's cash flow after dividends have been made.
Français: Net
Español: Neto

Net assets/Net worth:

The company’s worth calculated by deducting total liabilities from its total assets. If this is negative, the company is
considered technically insolvent.
Français: Actifs nets/Valeur nette
Español: Valor neto, patrimonio neto

Net book value:

See Book value.
Français: Valeur comptable nette
Español: Net book value

Net buyer range:

The price range within which the buffer stock manager must buy more of the commodity in order to prevent prices from
falling excessively. See also Buffer stock system and Net seller range.
Français: Champ acheteur net
Español: Margen neto del comprador

Net current asset:

See Working capital.
Français: Actif circulant net
Español: Capital de explotación
Net income (USA) / Net profit (UK):
See Net.
Français: Revenu net (USA) / Profit net (GB)
Español: Ingresos netos

Net interest:
The interest left after the deduction of withholding tax (tax at source) on interest or dividend.
Français: Intérêt net
Español: Interés neto

Net present value (NPV):

Used in project evaluation, this is the present value of expected future cash flows, minus the cost.
Français: Valeur actuelle nette
Español: Valor actual neto (VAN)

Net seller range:

The price range within which the buffer stock manager must sell more of the commodity in order to keep prices from
rising too far. See also Buffer stock system and Net buyer range.
Français: Champ vendeur net
Español: Margen neto del vendedor

Net weight:
The weight of the goods, excluding their packing.
Français: Poids net
Español: Peso neto

Net worth:
See Net assets.
Français: Valeur nette
Español: Net worth

New Industrial Country (NIC):

An OECD term indicating those countries which, after having experienced a rapid economic growth, have become
"middle-income" countries (such as Brazil, South Korea, etc.).
Français: Nouveau pays industrialisé
Español: País de reciente industrialización (PRI)

New issues:
A general term for all forms of new long-term capital raising by borrowers. A primary market is one on which a new
issue of securities is offered for the first time to investors.
Français: Nouvelles émissions
Español: Nuevas emisiones

New York Commodity Exchange:

The Futures market for trading in commodities in New York.
Français: Bourse des matières premières de New-York
Español: New York Commodity Exchange

New York Futures Exchange (NYFE):

Set up in 1979 as a subsidiary of the New York Stock Exchange for futures trading.
Français: New York Futures Exchange (NYFE)
Español: New York Futures Exchange (NYFE)

New York Stock Exchange (NYSE):

Established in 1792, it is among the oldest and largest exchange both in the US and word-wide. It is located in Wall
Street in New York City.
Français: New York stock Exchange (NYSE)
Español: New York Stock Exchange (NYSE)

Nikkei index:
A quoted measure of stock price movements on the Tokyo stock exchange. The Nikkei is an index (average) of 225
stocks on the Tokyo stock exchange.
Français: Indice Nikkei
Español: Indice Nikkei

Nominal exchange rate:

The actual foreign exchange quotation, as compared to the real exchange rate adjusted for changes in purchasing
power caused by inflation.
Français: Taux de change nominal
Español: Tipo de cambio nominal

Nominal value:
"In name only". The value of anything (wages, GDP, exports, commodities, shares) expressed in current prices, not
taking into consideration inflation. Opposite: Real values.
Français: Valeur nominale
Español: Valor nominal
 Non-accrual loan:
A loan on which principal and/or interest have not been paid for 90 days.
Français: Prêt en souffrance
Español: Préstamo no redituable, préstamo improductivo

Non-bank financial institution:

A financial institution without a banking licence which cannot, therefore, collect deposits from the public.
Français: Institution financière sans caractère-bancaire
Español: Institución financiera no bancaria

O
OAU (Organization of African Unity):
An organization of African nations, primarily with political goals.
Français: OAU
Espa ٌ◌ol: OAU

Obligation to provide additional cover:

An obligation by the borrower to supply additional collateral if the value of the objects pledged as security declines.
Français: Obligation d’accorder une couverture additionnelle
Espa ٌ◌ol: Obligaci َ◌n de proporcionar cobertura adicional

Ocean Bill of Lading:

A bill of lading (B/L) signed by the ocean carrier indicating that the exporter has consigned a shipment to the carrier for
transportation to a specific foreign market. It provides written evidence, and a receipt for the conveyance and delivery
of merchandise. Unlike an Inland B/L, the ocean B/L also serves as a collection document. If it is a Straight B/L, the
foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a Negotiable B/L is used,
the buyer must first pay for the goods, then post a bond or meet other conditions agreed by the seller. The Ocean B/L
may also be used as an instrument of ownership which can be bought, sold or traded while the goods are in transit.
For this purpose, it must be a Negotiable Order Bill of Lading. See also bill of lading , On Board Bill of lading, Clean Bill
of Lading. Compare with Air Waybill, Inland Bill of Lading, Through Bill of Lading.
Français: Connaissement maritime
Espa ٌ◌ol: Conocimiento de embarque mar‫ي‬timo, conocimiento de embarque a la orden

Ocean Marine Insurance Policy:

A policy to cover the insured from losses arising from unforeseen circumstances or damage to merchandise shipped.
The basic policy provides coverage from transportation perils but may be amended to cover additional hazards. Other
types of marine insurance policies include:
(1) Open (insurance) Policy: an insurance automatically applying to all of the exporter’s shipments during a specified
period of time, rather than just to one shipment. The insured agrees to report the shipments to the insurer and pay the
corresponding premium.
(2) Special Marine Policy: sometimes known as marine insurance certificate, this is a policy covering a specific
shipment, most frequently used to provide evidence of insurance.
Français: Police d'assurance maritime
Espa ٌ◌ol: P َ◌liza de seguro mar‫ي‬timo oce‫ل‬nico

OECD (Organization for Economic Cooperation and Development):

A multilateral organization of industrial and semi-industrialized countries founded in 1960 and based in Paris, France.
Its aim is "to achieve the highest sustainable economic growth and employment and a rising standard of living in
member countries while maintaining financial stability and thus contribute to the world economy". It is essentially a
forum for discussion of common economic and social issues, and assists member states in formulating their economic
policies. See also Consensus.
Français: Organisation de Coopération et de Développement Economique (OCDE)
Espa ٌ◌ol: Organizaci َ◌n de Cooperaci َ◌n y Desarrollo Econ َ◌micos (OCDE)

OECD Export Credit and Credit Guarantees Group, OECD Trade Committee:
A forum in which 22 OECD member countries participate in the Arrangement on Guidelines for Officially Supported
Export Credits (the Consensus). Turkey and Mexico also attend the Group as observers. Besides co-ordinating export
credit terms, the group also serves as a forum for exchanging information on debtor country situations and on Export
credit agencies' practices.
Français: Crédit à l’Export et Groupe des Garanties de Crédit de l’OCDE, Comité du Commerce de l’OCDE
Espa ٌ◌ol: OECD Export Credit and Credit Guarantees Group, OECD Trade Committee

Off-balance-sheet financing:
Financing not shown as a liability on the company's balance sheet
Français: Financement hors bilan
Espa ٌ◌ol: Financiaci َ◌n no incluida en el balance de situaci َ◌n, financiaci َ◌n complementaria

Off-cover:
A term used by Export credit agencies to indicate those countries considered not creditworthy, and towards which the
ECA will refuse to guarantee bank loans for export financing. In such cases, either the domestic bank takes the risk on
the credit being extended to the off-cover country, the exporter himself accepts the risk or the business transaction is
called off.
Français: Hors-couverture
Espa ٌ◌ol: Excluido de la cobertura

Offer/Offers:
(1) A general term indicating the willingness to sell an asset at a given price. An offer may, for instance, be the price on
which a loan may be based, the price at which a security is sold on the market or the conditions on which a bill is
discounted. Related: Bid
(2) In credit insurance, the term indicates the amounts for which an export credit agencies is committed to provide
cover if the exporter succeeds in obtaining a contract. It usually refers to medium-term business, given that most
agencies do not make offers for normal short-term business.
Français: Offres/Offres
Espa ٌ◌ol: Oferta
Official development assistance (ODA):
The financial resources granted on concessional terms to developing countries and multilateral development
institutions for the pursuance of economic development objectives. They are provided by government agencies and
have a grant element of at least 25%.
Français: Assistance de développement officielle
Espa ٌ◌ol: Asistencia oficial para el desarrollo (AOD)

Official reserves:
The holdings of gold, foreign currency and Special Drawing Rights (SDR) of a country’s Central Bank.
Français: Réserves officielles
Espa ٌ◌ol: Reservas oficiales

Officially supported export credits:

Credits extended to finance the export of goods and services for which the official export credit agencies of the creditor
country provides guarantees, insurance or direct financing. Under OECD Consensus rules on export credits of two
years or longer, up to 85% of the export contract value may be financed. The financing element, as opposed to the
guarantee/insurance element, may take different forms. It may either be extended directly by the exporter (suppliers'
credit), or by a commercial bank in the form of a financial trade-related credit provided to the supplier (supplier's credit
again) or to the importer (buyers' credit). It can also be extended directly by an official institution within the country of
export, usually in the form of medium-term finance for the promotion of exports of capital equipment or for the
implementation of large-scale, medium-term projects.
Français: Crédits à l'export officiellement soutenus
Espa ٌ◌ol: Créditos de exportaci َ◌n concedidos con apoyo oficial

Offset:
In general, the elimination of a position (and thus of the related risks) through an equal and opposite transaction. For
example, selling a security forward if you are long.
Français: Compensation
Espa ٌ◌ol: Compensaci َ◌n

"Offset" agreements:
See Countertrade.
Français: Contrats de compensation
Espa ٌ◌ol: Acuerdo de compensaci َ◌n

Off-shore:
Outside the jurisdiction of a particular country.
Français: Offshore
Espa ٌ◌ol: Extraterritorial
Offshore Bank:
A foreign bank involved in domestic money market, Eurocurrency and foreign exchange financial transactions. It is not
allowed to accept domestic deposits but its activities are unrestricted by domestic authorities. Offshore banks are
located in major financial centres characterised by very liberal reserve, tax and capital market requirements.
Français: Offshore Bank
Espa ٌ◌ol: Banco extraterritorial

Off-take:
The output of a given project.
Français: Ecoulement de marchandises
Espa ٌ◌ol: Producto

Off-take agreement:
An agreement between the project company and the purchaser (off-taker) of the project’s final output, specifying the
terms and conditions of the purchase, including price, quantity and conditions of tenor of the agreement to purchase
the off-take.
Français: Contrat d’écoulement
Espa ٌ◌ol: Acuerdo de prelevo

On board bill of lading:

A bill of lading certifying that the goods accepted for transportation have actually been shipped on board. On Board
B/L are usually referred to in letter of credit transactions for the shipper to obtain payment from the bank.
Français: On board bill of lading
Espa ٌ◌ol: Conocimiento de embarque a bordo

On demand; On sight:
A notation on a claim document implying that the specified amount becomes due and payable immediately upon
presentation of the debt certificate or payment order by the creditor to the debtor.
Français: A la demande, à vue
Espa ٌ◌ol: A requerimiento, a la vista

OPEC:
See Organization of Petroleum Exporting Countries.
Français: OPEC
Espa ٌ◌ol: OPEC

Open account:
A means of payment whereby the exporter extends credit directly to the importer. The goods are delivered and
payment is provided for at some specified future date, without the buyer issuing any negotiable instrument evidencing
his legal commitment. The final payment by the buyer is via cheque or money transfer, with the bank's role being
limited to moving the funds from the buyer to the seller. In some cases, the open accounts receivable may be
discounted with a financial institution. An open account transaction requires the seller to have absolute trust in the
integrity of the buyer, since the seller assumes all the risks of the transaction, as opposed to cash in advance. Open
account is thus common in markets characterized by long-standing commercial relationships between the two parties.
Français: Compte ouvert
Espa ٌ◌ol: Cuenta abierta

Open contract:
A contract in which some of the key elements, such as quantity and/or price will be determined at a later stage under
specific sub contracts.
Français: Contrat ouvert
Espa ٌ◌ol: Contrato pendiente

Open-market operations:
A Central Bank’s dealings in the domestic money market or securities market, aimed at adjusting and controlling the
credits and money supply in the economy.
Français: Opérations sur le marché public, opérations d'"open market"
Espa ٌ◌ol: Transacciones de mercado libre

Open (insurance) Policy:

See Ocean Marine Insurance Policy.
Français: Police d'assurance ouverte
Espa ٌ◌ol: P َ◌liza flotante, p َ◌liza abierta

Open Tender:
An invitation to bid, open to all suppliers willing to submit offers. See Restricted tender.
Français: Soumission ouverte
Espa ٌ◌ol: Licitaci َ◌n p ْ◌blica

Operating risk:
The inherent risk of a firm, also known as business risk.
Français: Risque d'exploitation
Espa ٌ◌ol: Riesgo de explotaci َ◌n

Operational risk:
Operational risk arises from the potential for loss due to significant deficiencies in system reliability or integrity. Banks
may be subject to external or internal attacks on their systems or products, as well as customer misuse and
inadequately designed or implemented electronic banking and electronic money systems.
Français: Risque opérationnel
Espa ٌ◌ol: Riesgo operacional
Operator:
Within a project, the party responsible for the project’s operation and maintenance.
Français: Opérateur
Espa ٌ◌ol: Operador, empresario

Opportunity cost of capital:

The expected return which is foregone when funds are invested in a project rather than in financial securities with a
comparable level of risk.
Français: Coût d'opportunité du capital
Espa ٌ◌ol: Costo de oportunidad del capital, costo de opci َ◌n del capital

Option:
A derivative contract which gives the buyer the right, though not the obligation, to buy or sell a specific quantity of the
underlying asset (e.g. security, commodity, currency, etc) at a stated strike price, within a specific period or on a
specified date. In return for this right, the buyer of the option will have to pay a premium. Options are issued by
investors, not by companies. Companies may buy them as a means of cover against risk (for instance, exchange rate
fluctuations). See also Seller of an Option, Call option, Put option.
Français: Option
Espa ٌ◌ol: Opci َ◌n

Order instrument:
A paper which may be transferred by endorsement (i.e. a negotiable instrument). Legal order instruments (such as
cheques, drafts and bills of exchange) are always order instruments, even when they do not bear a "to the order to"
notation. On the other hand, instruments such as Bills of lading and bill-like papers become negotiable only after such
a notation is added.
Français: Instrument d'ordre
Espa ٌ◌ol: Instrumento a la orden

Ordinary share (UK); common stock (USA):

A regular share, without any special features such as those characterising preference shares/preferred stocks.
Français: Action ordinaire
Espa ٌ◌ol: Ordinary share (UK)

Organization for Economic Cooperation and Development:

See OECD.
Français: Organisation de Coopération et de Développement Economique
Espa ٌ◌ol: Organizaci َ◌n de Cooperaci َ◌n y Desarrollo Econ َ◌micos (OCDE)

Organization of African Unity:

See OAU.
Français: Organisation de l’Unité Africaine
Espa ٌ◌ol: Organizaci َ◌n de la Unidad Africana (OUA)

Organization of Petroleum Exporting Countries (OPEC):

A cartel agreement to co-ordinate production and prices among major world oil exporting countries.
Français: Organisation des Pays Producteurs de Pétrole (OPEC)
Espa ٌ◌ol: Organizaci َ◌n de Pa‫ي‬ses Exportadores de Petr َ◌leo (OPEP)

Outsourcing:
When a domestic company uses foreign suppliers for components or finished products.
Français: Approvisionnement extérieur
Espa ٌ◌ol: Contrataci َ◌n de terceros

Overdraft:
A technique whereby a bank’s client is allowed to overdraw his account, i.e. withdraw funds exceeding his credit
balance. The bank gives its client a general credit facility, by which the client, through an overdraft, extends himself a
short-term loan, without needing a formal loan agreement. The advantage for the client is that he will pay for only as
much as he has borrowed.
Français: Découvert
Espa ٌ◌ol: Descubierto

Overdraw:
To draw in excess of the deposit balance or credit limit given by the bank.
Français: Tirer à découvert
Espa ٌ◌ol: Girar en descubierto

Overdue bill; dishonoured bill:

A bill of exchange which was not paid at maturity.
Français: Effet dû, effet exigible, effet non honoré, effet en souffrance
Espa ٌ◌ol: Letra vencida

Overseas investment finance:

Designed to cover the requirements of local firms establishing joint-ventures abroad, to enable them to finance their
contribution to the equity of the joint-venture.
Français: Financement de l'investissement d'outre-mer
Espa ٌ◌ol: Financiaci َ◌n de inversiones en el extranjero

Over-the-counter market (OTC market):

 A decentralised exchange market in which dealers from different geographical areas are linked by telephone and
computer (as opposed to an official stock market where dealings are conducted on a floor). Dealings in the OTC
market involve securities not listed on the official stock exchanges, typically securities of small or new companies
which cannot afford the expense of being traded on a major market. The NASDAQ market is an OTC market for U.S.
stocks.
Français: Hors coté
Espa ٌ◌ol: Mercado extraburs‫ل‬til

O
OAU (Organization of African Unity):
An organization of African nations, primarily with political goals.
Français: OAU
Espa ٌ◌ol: OAU

Obligation to provide additional cover:

An obligation by the borrower to supply additional collateral if the value of the objects pledged as security declines.
Français: Obligation d’accorder une couverture additionnelle
Espa ٌ◌ol: Obligaci َ◌n de proporcionar cobertura adicional

Ocean Bill of Lading:

A bill of lading (B/L) signed by the ocean carrier indicating that the exporter has consigned a shipment to the carrier for
transportation to a specific foreign market. It provides written evidence, and a receipt for the conveyance and delivery
of merchandise. Unlike an Inland B/L, the ocean B/L also serves as a collection document. If it is a Straight B/L, the
foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a Negotiable B/L is used,
the buyer must first pay for the goods, then post a bond or meet other conditions agreed by the seller. The Ocean B/L
may also be used as an instrument of ownership which can be bought, sold or traded while the goods are in transit.
For this purpose, it must be a Negotiable Order Bill of Lading. See also bill of lading , On Board Bill of lading, Clean Bill
of Lading. Compare with Air Waybill, Inland Bill of Lading, Through Bill of Lading.
Français: Connaissement maritime
Espa ٌ◌ol: Conocimiento de embarque mar‫ي‬timo, conocimiento de embarque a la orden

Ocean Marine Insurance Policy:

A policy to cover the insured from losses arising from unforeseen circumstances or damage to merchandise shipped.
The basic policy provides coverage from transportation perils but may be amended to cover additional hazards. Other
types of marine insurance policies include:
(1) Open (insurance) Policy: an insurance automatically applying to all of the exporter’s shipments during a specified
period of time, rather than just to one shipment. The insured agrees to report the shipments to the insurer and pay the
corresponding premium.
(2) Special Marine Policy: sometimes known as marine insurance certificate, this is a policy covering a specific
shipment, most frequently used to provide evidence of insurance.
Français: Police d'assurance maritime
Espa ٌ◌ol: P َ◌liza de seguro mar‫ي‬timo oce‫ل‬nico

OECD (Organization for Economic Cooperation and Development):

A multilateral organization of industrial and semi-industrialized countries founded in 1960 and based in Paris, France.
Its aim is "to achieve the highest sustainable economic growth and employment and a rising standard of living in
member countries while maintaining financial stability and thus contribute to the world economy". It is essentially a
forum for discussion of common economic and social issues, and assists member states in formulating their economic
policies. See also Consensus.
Français: Organisation de Coopération et de Développement Economique (OCDE)
Espa ٌ◌ol: Organizaci َ◌n de Cooperaci َ◌n y Desarrollo Econ َ◌micos (OCDE)

OECD Export Credit and Credit Guarantees Group, OECD Trade Committee:
A forum in which 22 OECD member countries participate in the Arrangement on Guidelines for Officially Supported
Export Credits (the Consensus). Turkey and Mexico also attend the Group as observers. Besides co-ordinating export
credit terms, the group also serves as a forum for exchanging information on debtor country situations and on Export
credit agencies' practices.
Français: Crédit à l’Export et Groupe des Garanties de Crédit de l’OCDE, Comité du Commerce de l’OCDE
Espa ٌ◌ol: OECD Export Credit and Credit Guarantees Group, OECD Trade Committee

Off-balance-sheet financing:
Financing not shown as a liability on the company's balance sheet
Français: Financement hors bilan
Espa ٌ◌ol: Financiaci َ◌n no incluida en el balance de situaci َ◌n, financiaci َ◌n complementaria

Off-cover:
A term used by Export credit agencies to indicate those countries considered not creditworthy, and towards which the
ECA will refuse to guarantee bank loans for export financing. In such cases, either the domestic bank takes the risk on
the credit being extended to the off-cover country, the exporter himself accepts the risk or the business transaction is
called off.
Français: Hors-couverture
Espa ٌ◌ol: Excluido de la cobertura

Offer/Offers:
(1) A general term indicating the willingness to sell an asset at a given price. An offer may, for instance, be the price on
which a loan may be based, the price at which a security is sold on the market or the conditions on which a bill is
discounted. Related: Bid
(2) In credit insurance, the term indicates the amounts for which an export credit agencies is committed to provide
cover if the exporter succeeds in obtaining a contract. It usually refers to medium-term business, given that most
agencies do not make offers for normal short-term business.
Français: Offres/Offres
Espa ٌ◌ol: Oferta

Official development assistance (ODA):

The financial resources granted on concessional terms to developing countries and multilateral development
institutions for the pursuance of economic development objectives. They are provided by government agencies and
have a grant element of at least 25%.
Français: Assistance de développement officielle
Espa ٌ◌ol: Asistencia oficial para el desarrollo (AOD)
Official reserves:
The holdings of gold, foreign currency and Special Drawing Rights (SDR) of a country’s Central Bank.
Français: Réserves officielles
Espa ٌ◌ol: Reservas oficiales

Officially supported export credits:

Credits extended to finance the export of goods and services for which the official export credit agencies of the creditor
country provides guarantees, insurance or direct financing. Under OECD Consensus rules on export credits of two
years or longer, up to 85% of the export contract value may be financed. The financing element, as opposed to the
guarantee/insurance element, may take different forms. It may either be extended directly by the exporter (suppliers'
credit), or by a commercial bank in the form of a financial trade-related credit provided to the supplier (supplier's credit
again) or to the importer (buyers' credit). It can also be extended directly by an official institution within the country of
export, usually in the form of medium-term finance for the promotion of exports of capital equipment or for the
implementation of large-scale, medium-term projects.
Français: Crédits à l'export officiellement soutenus
Espa ٌ◌ol: Créditos de exportaci َ◌n concedidos con apoyo oficial

Offset:
In general, the elimination of a position (and thus of the related risks) through an equal and opposite transaction. For
example, selling a security forward if you are long.
Français: Compensation
Espa ٌ◌ol: Compensaci َ◌n

"Offset" agreements:
See Countertrade.
Français: Contrats de compensation
Espa ٌ◌ol: Acuerdo de compensaci َ◌n

Off-shore:
Outside the jurisdiction of a particular country.
Français: Offshore
Espa ٌ◌ol: Extraterritorial

Offshore Bank:
A foreign bank involved in domestic money market, Eurocurrency and foreign exchange financial transactions. It is not
allowed to accept domestic deposits but its activities are unrestricted by domestic authorities. Offshore banks are
located in major financial centres characterised by very liberal reserve, tax and capital market requirements.
Français: Offshore Bank
Espa ٌ◌ol: Banco extraterritorial
Off-take:
The output of a given project.
Français: Ecoulement de marchandises
Espa ٌ◌ol: Producto

Off-take agreement:
An agreement between the project company and the purchaser (off-taker) of the project’s final output, specifying the
terms and conditions of the purchase, including price, quantity and conditions of tenor of the agreement to purchase
the off-take.
Français: Contrat d’écoulement
Espa ٌ◌ol: Acuerdo de prelevo

On board bill of lading:

A bill of lading certifying that the goods accepted for transportation have actually been shipped on board. On Board
B/L are usually referred to in letter of credit transactions for the shipper to obtain payment from the bank.
Français: On board bill of lading
Espa ٌ◌ol: Conocimiento de embarque a bordo

On demand; On sight:
A notation on a claim document implying that the specified amount becomes due and payable immediately upon
presentation of the debt certificate or payment order by the creditor to the debtor.
Français: A la demande, à vue
Espa ٌ◌ol: A requerimiento, a la vista

OPEC:
See Organization of Petroleum Exporting Countries.
Français: OPEC
Espa ٌ◌ol: OPEC

Open account:
A means of payment whereby the exporter extends credit directly to the importer. The goods are delivered and
payment is provided for at some specified future date, without the buyer issuing any negotiable instrument evidencing
his legal commitment. The final payment by the buyer is via cheque or money transfer, with the bank's role being
limited to moving the funds from the buyer to the seller. In some cases, the open accounts receivable may be
discounted with a financial institution. An open account transaction requires the seller to have absolute trust in the
integrity of the buyer, since the seller assumes all the risks of the transaction, as opposed to cash in advance. Open
account is thus common in markets characterized by long-standing commercial relationships between the two parties.
Français: Compte ouvert
Espa ٌ◌ol: Cuenta abierta

Open contract:
A contract in which some of the key elements, such as quantity and/or price will be determined at a later stage under
specific sub contracts.
Français: Contrat ouvert
Espa ٌ◌ol: Contrato pendiente

Open-market operations:
A Central Bank’s dealings in the domestic money market or securities market, aimed at adjusting and controlling the
credits and money supply in the economy.
Français: Opérations sur le marché public, opérations d'"open market"
Espa ٌ◌ol: Transacciones de mercado libre

Open (insurance) Policy:

See Ocean Marine Insurance Policy.
Français: Police d'assurance ouverte
Espa ٌ◌ol: P َ◌liza flotante, p َ◌liza abierta

Open Tender:
An invitation to bid, open to all suppliers willing to submit offers. See Restricted tender.
Français: Soumission ouverte
Espa ٌ◌ol: Licitaci َ◌n p ْ◌blica

Operating risk:
The inherent risk of a firm, also known as business risk.
Français: Risque d'exploitation
Espa ٌ◌ol: Riesgo de explotaci َ◌n

Operational risk:
Operational risk arises from the potential for loss due to significant deficiencies in system reliability or integrity. Banks
may be subject to external or internal attacks on their systems or products, as well as customer misuse and
inadequately designed or implemented electronic banking and electronic money systems.
Français: Risque opérationnel
Espa ٌ◌ol: Riesgo operacional

Operator:
Within a project, the party responsible for the project’s operation and maintenance.
Français: Opérateur
Espa ٌ◌ol: Operador, empresario

Opportunity cost of capital:

The expected return which is foregone when funds are invested in a project rather than in financial securities with a
comparable level of risk.
Français: Coût d'opportunité du capital
Espa ٌ◌ol: Costo de oportunidad del capital, costo de opci َ◌n del capital

Option:
A derivative contract which gives the buyer the right, though not the obligation, to buy or sell a specific quantity of the
underlying asset (e.g. security, commodity, currency, etc) at a stated strike price, within a specific period or on a
specified date. In return for this right, the buyer of the option will have to pay a premium. Options are issued by
investors, not by companies. Companies may buy them as a means of cover against risk (for instance, exchange rate
fluctuations). See also Seller of an Option, Call option, Put option.
Français: Option
Espa ٌ◌ol: Opci َ◌n

Order instrument:
A paper which may be transferred by endorsement (i.e. a negotiable instrument). Legal order instruments (such as
cheques, drafts and bills of exchange) are always order instruments, even when they do not bear a "to the order to"
notation. On the other hand, instruments such as Bills of lading and bill-like papers become negotiable only after such
a notation is added.
Français: Instrument d'ordre
Espa ٌ◌ol: Instrumento a la orden

Ordinary share (UK); common stock (USA):

A regular share, without any special features such as those characterising preference shares/preferred stocks.
Français: Action ordinaire
Espa ٌ◌ol: Ordinary share (UK)

Organization for Economic Cooperation and Development:

See OECD.
Français: Organisation de Coopération et de Développement Economique
Espa ٌ◌ol: Organizaci َ◌n de Cooperaci َ◌n y Desarrollo Econ َ◌micos (OCDE)

Organization of African Unity:

See OAU.
Français: Organisation de l’Unité Africaine
Espa ٌ◌ol: Organizaci َ◌n de la Unidad Africana (OUA)

Organization of Petroleum Exporting Countries (OPEC):

A cartel agreement to co-ordinate production and prices among major world oil exporting countries.
Français: Organisation des Pays Producteurs de Pétrole (OPEC)
Espa ٌ◌ol: Organizaci َ◌n de Pa‫ي‬ses Exportadores de Petr َ◌leo (OPEP)
Outsourcing:
When a domestic company uses foreign suppliers for components or finished products.
Français: Approvisionnement extérieur
Espa ٌ◌ol: Contrataci َ◌n de terceros

Overdraft:
A technique whereby a bank’s client is allowed to overdraw his account, i.e. withdraw funds exceeding his credit
balance. The bank gives its client a general credit facility, by which the client, through an overdraft, extends himself a
short-term loan, without needing a formal loan agreement. The advantage for the client is that he will pay for only as
much as he has borrowed.
Français: Découvert
Espa ٌ◌ol: Descubierto

Overdraw:
To draw in excess of the deposit balance or credit limit given by the bank.
Français: Tirer à découvert
Espa ٌ◌ol: Girar en descubierto

Overdue bill; dishonoured bill:

A bill of exchange which was not paid at maturity.
Français: Effet dû, effet exigible, effet non honoré, effet en souffrance
Espa ٌ◌ol: Letra vencida

Overseas investment finance:

Designed to cover the requirements of local firms establishing joint-ventures abroad, to enable them to finance their
contribution to the equity of the joint-venture.
Français: Financement de l'investissement d'outre-mer
Espa ٌ◌ol: Financiaci َ◌n de inversiones en el extranjero

Over-the-counter market (OTC market):

A decentralised exchange market in which dealers from different geographical areas are linked by telephone and
computer (as opposed to an official stock market where dealings are conducted on a floor). Dealings in the OTC
market involve securities not listed on the official stock exchanges, typically securities of small or new companies
which cannot afford the expense of being traded on a major market. The NASDAQ market is an OTC market for U.S.
stocks.
Français: Hors coté
Espa ٌ◌ol: Mercado extraburs‫ل‬til
P
Packing credit:
A loan granted against the presentation of a warehouse receipt, forwarder's receipt or any other document proving that
the goods are no longer in the seller's possession.
Français: Crédit d’emballage
Espa ٌ◌ol: Crédito de empaque

Packing list:
A list describing the number and kind of the shipped items, as well as other information needed for transportation
purposes.
Français: Liste d'emballage
Espa ٌ◌ol: Lista de especificaci َ◌n de embalajes, nota de embarque, lista de bultos

Paid-in surplus:
The surplus (excess) paid by investors in the purchase of a company's shares. When shares are issued at above par,
the capital paid in is divided into share capital (at par) and paid-in surplus (the excess above par). Also called Share
premium.
Français: Payé en-sus
Espa ٌ◌ol: Prima de emisi َ◌n (de acciones), prima pagada por venta de acciones

Paper:
A general term indicating commercial paper such as bills of exchange or promissory notes. It may also be used to refer
to any kind of security.
Français: Papier
Espa ٌ◌ol: Efectos, t‫ي‬tulos, valores

Par:
(1) Par price; Par rate: A term indicating that the market price of a security is equal to its nominal or face value.
(2) Par value: The value of the security as printed on its face (i.e. the security’s face or nominal value). It also indicates
the maturity value, i.e. the amount that the issuer agrees to pay at the maturity date of the security.
(3) Currency at par: A currency whose spot and forward prices are the same.
Français: Pair
Espa ٌ◌ol: Par

Par of exchange:
The equivalent of a unit of a currency expressed in the currency of another country, using gold as the standard value.
Français: Par of exchange
Espa ٌ◌ol: Paridad del cambio
Parallel loan:
See Back-to-back loan.
Français: Prêt parallèle
Espa ٌ◌ol: Parallel loan

Parallel Market:
A secondary currency market where currency rates are different from those applied in the official market. The term
may sometimes also apply to the black market.
Français: Marché parallèle
Espa ٌ◌ol: Mercado paralelo

Paris Club:
A term designating the international meetings convened to negotiate the rescheduling of the "official debt" (i.e. public
sector debt) of heavily indebted developing countries. Negotiations take place between creditor and debtor countries to
consider opportunities for rescheduling or consolidating the debt-service payments on loans extended, insured or
guaranteed by the creditor countries' governments or official agencies. The broad terms of the agreed rescheduling
are then set forth in an Agreed Minute, which the representatives will submit to their respective governments. The
Paris Club has neither a fixed membership nor an institutional structure and is open to all official creditors who accept
its practices and procedures. Comparable meetings occasionally take place in London (London Club) and in New York
for countries which wish to renegotiate repayment terms for their debts to private banks. These are sometimes called
"creditor clubs".
Français: Club de Paris
Espa ٌ◌ol: Club de Par‫ي‬s

Paris Inter-Bank Offered Rate:

See PIBOR.
Français: Taux interbancaire offert à Paris
Espa ٌ◌ol: Paris Inter-Bank Offered Rate

Parity: Currency parity:

The official ratio of a currency in terms of another. Dollar parity, for example, is the value ratio of a currency against US
dollars.
Français: Parité: Parité monétaire
Espa ٌ◌ol: Paridad cambiaria

Partial acceptance:
An acceptance which differs from the terms stated in the bill, e.g. an acceptance calling only for partial payment of the
amount or at a different time than that originally agreed upon.
Français: Acceptation partielle
Espa ٌ◌ol: Aceptaci َ◌n parcial

Payable in advance:
An expression used in connection with interest payments, indicating that the interest is payable at the beginning of the
reference interest period (e.g. year, six months, etc.). Opposite: Payable in arrears.
Français: Payable à l'avance
Espa ٌ◌ol: Pagadero por anticipado

Payable in arrears:
A term used in connection with interest payments, showing that the interest is payable at the end of the reference
interest period. Opposite: Payable in advance.
Français: Payable à termes échus
Espa ٌ◌ol: Pagadero a plazo vencido

Pay-back method:
A technique for project appraisal, based on the length of time it takes to recover the initial cost required to undertake a
project, without regard to the time value (i.e. opportunity cost) of the money.
Français: Méthode de remboursement
Espa ٌ◌ol: Método de reembolso, método de amortizaci َ◌n

Payee:
The person or company to whom a draft, bill, cheque or other negotiable instrument is made payable.
Français: Bénéficiaire
Espa ٌ◌ol: Beneficiario (del pago)

P/E ratio:
Price/earnings ratio.
Français: Rapport, ratio: Prix/Bénéfice
Espa ٌ◌ol: Relaci َ◌n precio-beneficio (por acci َ◌n) (PB), relaci َ◌n entre cotizaci َ◌n y precio (PER)

Peg:
To fix the value of a currency to a benchmark, such as another currency or the value of gold.
Français: Peg
Espa ٌ◌ol: Peg

Performance bond:
A bond provided by the bank or the insurer of a supplier to assure the buyer that the supplier will perform as agreed,
i.e. fulfil his obligations within the terms and conditions agreed upon in the contract. The bond will compensate the
buyer should the supplier fail to perform. It is usually issued to cover 10% of the contract value.
Français: Garantie de bonne exécution
Espa ٌ◌ol: Fianza de cumplimiento, aval de cumplimiento, fianza de ejecuci َ◌n
Performance Bond Coverage:
An insurance or guarantee protecting the supplier, or the issuing bank or insurer, from the unjustified or arbitrary
calling of a Performance Bond by the buyer.
Français: Couverture de garantie de bonne exécution
Espa ٌ◌ol: Cobertura de la fianza de cumplimiento

Performance Letter of Credit:

A type of letter of credit issued by a bank, promising the buyer/importer that he will be compensated in the event of a
specifically defined default by the seller/exporter in the performance of an obligation. It is frequently used in place of a
Performance Bond.
Français: Lettre de crédit de bonne d'exécution
Espa ٌ◌ol: Carta de crédito de cumplimiento

Permanent financing:
Financing which is put in place to replace a short-term loan or a contractor/construction loan.
Français: Financement permanent
Espa ٌ◌ol: Financiaci َ◌n permanente

Perpetuity:
"without an end". For instance, a perpetual warrant indicates a warrant which has no expiry date.
Français: Perpétuité
Espa ٌ◌ol: Renta perpetua

PIBOR (Paris Inter-Bank Offered Rate):

This is the interbank rate practiced in Paris on short-term loans (one to twelve months), through which first-class banks
lend and borrow funds.
Français: Taux interbancaire offert à Paris
Espa ٌ◌ol: PIBOR, tipo de interés interbancario en el mercado de capitales de Par‫ي‬s

Place of performance:
The place where the debtor is to fulfil his obligation to pay.
Français: Place d'exécution
Espa ٌ◌ol: Lugar de ejecuci َ◌n

Plain vanilla:
A term referring to relatively simple derivative financial instruments, such a swap or other derivative issued with
standard features. Opposite of Exotic.
Français: Plain vanilla
Espa ٌ◌ol: Cl‫ل‬sico
Pledge:
The transfer of an asset to secure the payment of an obligation, but without transfer of title or ownership. In case of
default, the creditor can acquire the pledged asset as repayment. In banking, the pledging of securities is among the
most common forms of credit collateralizing transactions, especially in the case of overdrafts and loans. See also
Lombard (Collateral) loans.
Français: Nantissement
Espa ٌ◌ol: Prenda, pignoraci َ◌n, garant‫ي‬a, fianza

Pledged collateral:
Assets of value, such as securities, merchandise, etc., deposited and pledged as security for the repayment of a loan.
Français: Gage nanti
Espa ٌ◌ol: Garant‫ي‬a en prenda

Political Risk:
The risk of loss due to default on export credits arising from political causes, such as currency non-convertibility,
expropriation of the obligor, government interference, war or revolution, etc.
Français: Risque politique
Espa ٌ◌ol: Riesgo pol‫ي‬tico

Political-Risk-Only coverage:
A guarantee/insurance policy providing cover against losses arising from political risks.
Français: Couverture uniquement du risque politique
Espa ٌ◌ol: Cobertura de riesgos pol‫ي‬ticos

Portfolio:
A general term indicating a collection of investments, such as real estate or financial instruments.
Français: Portefeuille
Espa ٌ◌ol: Cartera

Portfolio investment:
Any foreign investment which is not a foreign direct investment. Foreign portfolio investments include assets such as
voting securities (stocks) in a foreign company (provided these remain below 10% of the total value of the company’s
shares), foreign bonds, provision of trade finance, government lending, etc.
Français: Investissement de portefeuille
Espa ٌ◌ol: Inversi َ◌n de cartera

Position:
(1) The balance shown by an account.
(2) The commitment undertaken by an investor on the foreign exchange or securities markets, i.e. the number of
contracts bought or sold for which no offsetting transaction has been concluded. See Long position and Short position.
Français: Position
Espa ٌ◌ol: Posici َ◌n

Postage paid:
A pricing term meaning that the seller has paid the mailing charges.
Français: Frais postaux payés
Espa ٌ◌ol: Franqueo concertado

Post shipment financing:

Credit covering the company’s financial needs for the period following the shipment, to ensure sufficient liquidity until
the shipped products have reached the purchaser and payment has been received. Post-shipment financing is
generally of a short-term nature (less than twelve months). Compare with Pre-shipment financing.
Français: Financement après expédition
Espa ٌ◌ol: Financiaci َ◌n posterior a la expedici َ◌n

Post- shipment risk:

The risk of loss due to events occurring after the shipment of the goods.
Français: Risque après expédition
Espa ٌ◌ol: Riesgo de posterior a la expedici َ◌n

Precautionary motive:
The holding of cash to be able to deal with unexpected events which would require a cash outlay.
Français: Motif de précaution
Espa ٌ◌ol: Motivo precauci َ◌n

Pre-commissioning interest:
See Interest during construction.
Français: Intérêt antérieur à la mise en exploitation
Espa ٌ◌ol: Pre-commissioning interest

Preferences:
Trade advantages (such as tariff preferences) given by a country to some of its trading partners in order to promote
their export growth and the development of mutual trade relations. Trade preferences are often granted to developing
countries (as within the framework of the Lomé Convention) to foster their export sector and economic development
prospects.
Français: Préférences
Espa ٌ◌ol: Preferencias
Preference share (UK); Preferred stock (USA):
A share with preference rights, i.e. which has preference over ordinary shares of the same company with regard to
dividend payments and the distribution of assets on liquidation. The full dividend must be paid on preferred shares
before any dividend can be paid on the company’s other shares.
Français: Actions privilégiées
Espa ٌ◌ol: Acci َ◌n preferente

Premium:
(1) In insurance, the amount paid (usually in advance) by the insured to the insurer in return for coverage against
specified risks. It may therefore be seen as the price of an insurance policy and, as such, is a key source of income for
export credit agencies.
(2) In foreign exchange, the difference between a currency’s spot and forward rate in the forward market. When the
domestic currency is quoted on a direct basis, the foreign currency will be selling at a premium when its forward rate
exceeds the spot rate.
(3) In the bond market, the amount paid above the bond’s par value.
Français: Prime
Espa ٌ◌ol: Prima

Premium deal:
A type of forward or option deal in which the buyer or the seller may withdraw from concluding the transaction by
paying a premium agreed upon in advance.
Français: Opération à prime
Espa ٌ◌ol: Operaci َ◌n con prima

Pre-qualification of bidders:
The selection of potential suppliers to whom the tender notices for proposed purchases may be sent. Such selection is
often made through a questionnaire, and on the basis of factors such as technical and financial ability, reputation and
reliability. See also Restricted tender.
Français: Préqualification des enchérisseurs
Espa ٌ◌ol: Precalificaci َ◌n de proponentes, precalificaci َ◌n de licitantes, precalificaci َ◌n de concursantes, precalificaci َ◌n
de postores

Present value:
The future net cash inflows expected from an asset or a planned project, discounted to reflect the present value of the
asset or project.
Français: Valeur actuelle
Espa ٌ◌ol: Valor actual

Pre-shipment financing:
Financing advanced to the exporter to support the costs of activities undertaken prior to shipment of the goods (i.e.
purchase of inputs and components, payment of salaries, wages and overheads etc.) and to provide him with
additional working capital. Pre-shipment financing may take the form of a short-term loan, an overdraft, a cash credit,
etc.
Français: Financement de pré-livraison
Espa ٌ◌ol: Financiaci َ◌n previa a la expedici َ◌n

Pre-shipment risk:
The risk of incurring a loss during the period between the date of signature of the contract and shipment. Such a loss
may be due to the cost of inputs, general overheads and set-up costs, which may be particularly high if the
manufacturing period is long. Insurance or guarantee cover and/or financing are sometimes available to meet the
exporter's needs during this period.
Français: Risque de pré-expédition
Espa ٌ◌ol: Riesgo previo a la expedici َ◌n

Price/book ratio:
A ratio which compares the market value of a company’s shares to the company’s net book value, i.e. the book value
of total assets less total liabilities. It is calculated by dividing the market value of the share by the ordinary shareholder
equity per share (book value).
Français: Prix/valeur comptable
Espa ٌ◌ol: Relaci َ◌n entre el precio y el valor contable

Price/cash flow ratio:

The ratio between the current market price of a company’s share and its cash flow. The cash flow reports the actual
movements of funds into and out of a company's accounts. The price of the share is divided by the cash flow per share
(total cash flow during the past twelve months divided by the number of outstanding shares).
Français: Prix/flux de trésorerie
Espa ٌ◌ol: Relaci َ◌n precio-flujo de caja

Price/earnings ratio (P/E):

The ratio compares a company's share market value to net profit (i.e. after tax profit). It is calculated by dividing the
current market price of the share by the earnings per share of that company. A high P/E implies that investors are
buying expensive shares compared with the present earnings flow of the company. P/E is a useful indicator for the
evaluation of share prices.
Français: Rapport, ratio: Prix/Bénéfice
Espa ٌ◌ol: Relaci َ◌n precio-beneficio (por acci َ◌n) (PB), relaci َ◌n entre cotizaci َ◌n y precio (PER)

Price/sales ratio:
The ratio is determined by dividing the current share price by the revenue per share. The latter is calculated by dividing
the revenue for the past twelve months by the number of outstanding shares.
Français: Rapport Prix/Ventes
Espa ٌ◌ol: Relaci َ◌n precio-ventas

Price elasticity:
The percentage change in the quantity (demanded/offered) of an asset divided by the percentage change in the price
of such asset.
Français: Elasticité du prix
Espa ٌ◌ol: Elasticidad-precio, elasticidad con respecto a los precios

Primary market:
A market for newly issued securities See also Secondary market.
Français: Marché primaire
Espa ٌ◌ol: Mercado primario (de valores)

Prime rate:
The interest rate charged by banks to their first-class (prime) borrowers, usually referring to short-term commercial
loans. See also Market discount rate.
Français: Taux pour les débiteurs de 1er ordre
Espa ٌ◌ol: Tipo preferencial (de interés bancario)

Principal:
(1) In lending, the total amount of money being borrowed or lent, on which interest payments are calculated.
(2) In a principal-agent relationship, the party giving instructions to the agent.
Français: Principal
Espa ٌ◌ol: Principal

Principal-agent relationship:
A situation whereby one person, the agent, acts on the behalf of another person, the principal.
Français: Relation Commettant-agent
Espa ٌ◌ol: Relaci َ◌n entre el mandante y el corredor

Private discount rate:

See Market discount rate.
Français: Taux d'escompte privé
Espa ٌ◌ol: Private discount rate

Private placement:
A situation when bonds or other securities are sold directly to a limited number of investors.
Français: Placement privé
Espa ٌ◌ol: Colocaci َ◌n privada

Profit and loss statement (UK); Income statement (USA):

A document reporting all expenses (costs) and income items (revenues) of a company during a given period (usually a
calendar year), showing its overall profit and loss, how much has been paid out in dividends and how much has been
retained. It complements the company’s balance sheet, which reports the company’s assets and liabilities.
Français: Compte de pertes et profits
Espa ٌ◌ol: Estado de pérdidas y ganancias

Pro forma invoice:

The first draft of the exporter's bill, provided to the importer prior to shipment of the merchandise, informing him of the
kind and quantity of goods to be sent, their estimated price and other characteristics (weight, size, etc.). On the basis
of this information, the importer will decide whether he wants to confirm an order or not.
Français: Facture pro-forma
Espa ٌ◌ol: Factura pro forma

Pro forma statement:

An unaudited financial statement prepared at a date not coinciding with the fiscal year's regular reporting. A company
may thus draw up a pro forma profit and loss statement, balance sheet and cash flow statement.
Français: Relevé pro-forma
Espa ٌ◌ol: Declaraci َ◌n pro forma

Progress payment:
Payments due from the buyer to the supplier during the contractual period, which may be financed under a buyer or
supplier credit.
Français: Paiement d'avancement
Espa ٌ◌ol: Pagos a cuenta, pagos parciales

Project financing:
A term indicating the sources and techniques for the financing of major capital projects. Such financing is typically
extended on the basis of the project’s expected cash flow rather than on guarantees from third parties.
Français: Financement de projet
Espa ٌ◌ol: Financiaci َ◌n de proyectos

Prolongation:
The extension of the maturity, running period or due date of a transaction or an order, for example the postponement
of the due date of a bill. Also called renewal.
Français: Prolongation
Espa ٌ◌ol: Prolongaci َ◌n, posposici َ◌n

Promissory note:
An unconditional written promise issued and signed by the debtor, to pay on demand, or at on a specified date, a
stated amount of money to the order of a specified person or to the note’s bearer. Promissory notes are transferred by
endorsement.
Français: Billet à ordre
Espa ٌ◌ol: Pagaré, reconocimiento de deuda, pagaré a la orden
Prospectus:
A formal document containing information about the borrower and the terms and conditions of the intended securities’
issue. It describes the borrower's current situation, business plan and other information required by investors to make
an informed investment decision. Prospectuses are also issued by Mutual funds to describe the fund objectives, risks
and other information.
Français: Prospectus
Espa ٌ◌ol: Prospecto

Protectionism:
A restrictive trade policy aimed at discouraging imports (by means of tariffs, quotas and other barriers) in order to
artificially help domestic producers competing with foreign suppliers.
Français: Protectionnisme
Espa ٌ◌ol: Proteccionismo

Protracted default:
Usually defined by Export credit agencies as a payment not received six months or longer after its date of maturity.
Français: Défaut
Espa ٌ◌ol: Incumplimiento prolongado

Provide cover:
To provide security (collateral) for an unsecured debt.
Français: Accorder la couverture
Espa ٌ◌ol: Hacer provisi َ◌n

Provisioning:
An allowance made in the accounts of some export credit agencies for potential losses on their exposure. Some
agencies make provision on all new business. Some refuse to make provisioning for political risk, considering that
sovereign debts will, ultimately, be repaid.
Français: Provisionner
Espa ٌ◌ol: Provisi َ◌n de fondos, constituci َ◌n de reservas

Public issue:
See Public offering.
Français: Emission publique
Espa ٌ◌ol: Oferta p ْ◌blica

Public offering:
The sale of registered securities by the issuer (or the underwriter acting on his behalf) on the public market. Also called
public issue.
Français: Offre publique
Espa ٌ◌ol: Oferta p ْ◌blica, colocaci َ◌n p ْ◌blica

Pull:
A promotion method whereby goods and services are pre-sold to consumers, i.e. sold even before consumers reach
the point of purchase, usually by relying on mass media. Compare with Push.
Français: Pull
Espa ٌ◌ol: Vender con antelaci َ◌n

Purchasing Power Parity (PPP):

This is a technique for comparing standards of living in different countries. It states that the ratio between domestic
and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.
Français: Parité des pouvoirs d'achat
Espa ٌ◌ol: Paridad de poder adquisitivo

Pure cover:
A trade financing arrangement providing for coverage of the risk under a credit insurance or bank guarantee contract
not accompanied by the corresponding funding. See Consensus.
Français: Couverture pure
Espa ٌ◌ol: Cobertura pura

Push:
A promotion method which involves direct selling techniques.
Français: Push
Espa ٌ◌ol: Venta directa

Put option:
An option which gives the buyer the right, though not the obligation, to sell a specified number of securities (currency
or commodities) at a stated strike price within a fixed period of time. If the strike price is higher than the spot market
price, the holder will buy the securities spot, and exercise the option, i.e. resell the securities at a profit (the difference
between the strike and spot market price). Compare with Call option.
Français: Option de vente
Espa ٌ◌ol: Opci َ◌n de venta (de acciones)

Pyramid scheme:
An illegal and fraudulent scheme in which a person or institution persuades victims to invest in the scheme by
promising extraordinary returns. In reality such returns simply consist in the distribution of resources contributed by
new investors, rather than being generated by genuinely productive investments.
Français: Plan pyramidal
Espa ٌ◌ol: Régimen piramidal
Q
Quantity controls:
A quantitative restriction imposed by the government, for example a limitation on the amount of foreign currency which
can be used in a specific transaction.
Français: Contrôles de quantité
Espa ٌ◌ol: Control cuantitativo

Quantitative limits:
In credit insurance, the limits set by export credit agencies on the amount of cover offered to a particular country. Such
limits are an important means of limiting exposure to risky countries.
Français: Limites quantitatives
Espa ٌ◌ol: L‫ي‬mite cuantitativo

Quick ratio:
A measure of a company's liquidity and of its ability to pay off short-term obligations without having to sell relatively
illiquid assets. The ratio compares the company's cash plus accounts receivable (quick assets) to its current liabilities.
A ratio of 1:1 (one to one) is considered desirable. See also Acid test.
Français: Ratio de liquidité, Rapport de liquidité
Espa ٌ◌ol: Prueba ‫ل‬cida

Quota:
(1) An instrument of trade control, consisting of limiting the amount of a product allowed for import to or export from a
country without restriction or the imposition of additional duties.
(2) Each member country of the IMF holds a quota, expressed in Special Drawing Rights, which determines its voting
and borrowing powers within the institution.
Français: Quota
Espa ٌ◌ol: Contingente, cuota

Quotation:
An offer to sell goods at a stated price and under specified conditions. See also Bid.
Français: Cotation
Espa ٌ◌ol: Oferta

Quoted companies:
Companies whose shares are listed on the official Stock Exchange
Français: Sociétés cotées
Espa ٌ◌ol: Empresa cotizada en bolsa
 Quoted currency:
An exchange rate is usually quoted by relating one currency to the other. The currency whose numerical value is "one"
is the base currency, while the other is the quoted currency. e.g. if the exchange rate between the pound and dollar
was quoted at £1 = $1.40, the pound would be the base currency and the dollar the quoted currency. See also Direct
and Indirect quote.
Français: Monnaie cotée
Espa ٌ◌ol: Divisa cotizada

R
Rate:
The cost of money, either to borrow or to lend (interest rate) or to exchange for another currency (exchange rate).
Français: Taux
Espa ٌ◌ol: Tipo, tasa, ‫ي‬ndice

Rate for advances against collateral; Lombard rate:

(1) The interest rate for Lombard loans granted by the Central Bank to the commercial banks, against the pledging of
securities eligible for discounting (Official Lombard rate).
(2) The interest rate applied by the commercial banks to Lombard (collateral) loans granted to their clients.
Français: Taux pour des avances garanties, taux avec collatéral, taux lombard
Espa ٌ◌ol: Tasa de préstamos con garant‫ي‬a prendaria; Tasa Lombard

Rate of return:
A ratio calculated as the current value of an asset minus its value at the time of purchase, divided by its value at the
time of purchase. In the case of equities, dividends may be included in the current value.
Français: Taux de rendement
Espa ٌ◌ol: Tasa de rendimiento, tasa de rentabilidad

Rating:
The credit assessment of an individual, or a firm, used particularly in connection with the issue of securities by
corporate borrowers.
Français: Notation
Espa ٌ◌ol: Clasificaci َ◌n

Rating agencies:
Agencies specialised in the analysis of the financial status of a company, and in the subsequent assignment of a
quality (credit) rating. The most important rating agencies include Standard and Poors and Moody's. Rating is also
practised in relation to countries, and provides useful information to investors on the quality of bonds issued by the
local government.
Français: Agences de notation
Espa ٌ◌ol: Agencia de calificaci َ◌n crediticia, agencia de calificaci َ◌n de valores, organismo de clasificaci َ◌n de valores

Real assets:
Identifiable (although not necessarily tangible) assets, such as buildings, equipment, patents and trademarks, as
opposed to financial assets.
Français: Actifs réels
Espa ٌ◌ol: Bienes ra‫ي‬ces, bienes inmuebles, activo real

Real exchange rate:

The exchange rate adjusted for the inflation differential between the two countries.
Français: Taux de change réel
Espa ٌ◌ol: Tipo de cambio real

Real Income per Capita:

This measures real GNP (deducting inflation) per head. If real GNP increases faster than population growth, this
should lead to a higher standard of living, although in reality this will depend upon income distribution.
Français: Revenu réel par tête d'habitant
Espa ٌ◌ol: Renta real por habitante, ingreso real per capita

Real value:
As opposed to nominal value, a real value takes into consideration inflation (i.e. deducts the effects of inflation).
Français: Valeur réelle
Espa ٌ◌ol: Valor real

Rebate Rate:
The discount made on the bill of Exchange or draft if it is paid before the due time.
Français: Taux de rabais
Espa ٌ◌ol: Tasa de descuento

Receivables; Debtors (UK):

A general term for what is due and collectable, i.e. the total amounts due on goods sold, services rendered or money
loaned and yet to be received. Also known as Account receivables.
Français: Débiteurs
Espa ٌ◌ol: Receivables, debtors (UK)

Recession:
A general decline in the level of economic activity and growth at country, region or world level. It is generally
associated with an increase in unemployment and a decline in the rate of inflation.
Français: Récession
Espa ٌ◌ol: Recesi َ◌n, contracci َ◌n econ َ◌mica

Reciprocity:
The reduction of a country's tariffs or other trade restraints in return for comparable trade concessions by another
country.
Français: Réciprocité
Espa ٌ◌ol: Reciprocidad

Recourse:
The right of a person, bank or Export credit agency to whom a note or other obligation has been endorsed, to demand
payment from the endorser of the note, if the original borrower fails to pay.
Français: Recours
Espa ٌ◌ol: Recurso, acci َ◌n

Recoveries:
Repayments made to agencies or banks by borrowing countries, relating to the claims paid out by agencies to
exporters, or loans granted by banks.
Français: Recouvrements
Espa ٌ◌ol: Recuperaciones

Recycling:
In finance, this refers to the transfer of funds from units with a financial surplus to those with a deficit. When this
transfer occurs through financial intermediaries, it is referred to as intermediation.
Français: Recyclage
Espa ٌ◌ol: Reciclaje

Red Clause:
A clause (originally typed in red) added to a letter of credit authorizing the advising/negotiating bank to make an
advance payment to the beneficiary (exporter) before the actual shipment to the buyer. The advance may be up to
100% of the export contract value and may be used by the exporter to buy the inputs for manufacturing or shipment.
Red clause credits are used primarily when the buyer (importer) has a agent in the exporting country. To finance its
purchases, the importer may arrange for the opening of a red clause letter of credit. Negotiations of red clause credits
are limited to the bank making the advances in order to assure that revenues from the shipment are used to repay the
advances made.
Français: "Clause rouge"
Espa ٌ◌ol: Carta de crédito con cl‫ل‬usula roja

Redeemable shares:
Shares which may be bought back by the company which originally issued them.
Français: Actions rachetables
Espa ٌ◌ol: Acci َ◌n amortizable
Redemption:
Cancellation of a security, either by cash payment or exchange against another security. Redemption may be
mandatory on a specified date, at the option of the borrower after a certain date or conditional upon certain defined
events (such as a change in the tax law which might jeopardise the borrower's position).
Français: Remboursement/amortissement
Espa ٌ◌ol: Rescate

Rediscount:
To sell or discount a negotiable instrument which has already been discounted once.
Français: Ré-escompte
Espa ٌ◌ol: Redescuento

Refinance:
(1) Paying off existing debts with new (and cheaper) loans.
(2) Funding provided by an ECA to a commercial bank to assure liquidity and to enable it to finance export
transactions. The bank may be required to provide collateral for the funding.
Français: Refinancement
Espa ٌ◌ol: Refinanciaci َ◌n, refinanciamiento

Registered bond:
A bond whose owner is registered with the issuer, as opposed to a bearer bond.
Français: Obligation nominative
Espa ٌ◌ol: Bono nominativo, obligaci َ◌n nominativa

Regress:
Recourse by the holders of bills, drafts and cheques against previous holders, endorsers or issuers etc.
Français: Recours
Espa ٌ◌ol: Regreso

Reimbursable:
This denotes an arrangement whereby the contractor is reimbursed by the client for the cost of goods and services
purchased for implementation of the contract.
Français: Remboursable
Espa ٌ◌ol: Reembolsable

Reinsurance:
A means of sharing risk in the insurance business. Typically, the amount originally insured (usually by a private sector
insurer) is totally or partially reinsured by an official (government) insurance agency. The private insurer might wish to
keep the commercial component of the risk on its own books, while seeking reinsurance against political risks. Some
large official agencies also provide reinsurance for smaller official agencies.
Français: Réassurance
Espa ٌ◌ol: Reaseguro

Re-lending:
Funding provided by an ECA to a commercial bank in support of the credits extended by the latter (generally for
buyer's credit only). Re-lending does not usually require the pledging of collateral.
Français: Re-prêter
Espa ٌ◌ol: Reciclaje de préstamos

Remittance:
A sum of money transferred from one party to another, either by cash or a negotiable instrument, usually as payment
for the purchase of goods or services.
Français: Remise
Espa ٌ◌ol: Remesas

Remitting Bank:
The bank instructed to handle collections, which in turn instructs the collecting bank.
Français: Remitting Bank
Espa ٌ◌ol: Banco remitente

Renewal:
In banking, the extension of a credit agreement, whereby the old credit arrangement is replaced by the establishment
of a new one.
Français: Renouvellement
Espa ٌ◌ol: Renovaci َ◌n

Repayment period; credit period:

The period during which repayments of a credit are due to be made. In a commercial contract, this usually starts on
completion of the contract.
Français: Période de remboursement
Espa ٌ◌ol: Per‫ي‬odo de reembolso

Repo:
Also known as repurchase agreement, this is an agreement by which one party sells a security to another party and
agrees to repurchase it on a specified date at a specified price.
Français: Contrat de rachat
Espa ٌ◌ol: Acuerdo de recompra
Rescheduling:
See Debt Rescheduling.
Français: Ré-échelonnement
Espa ٌ◌ol: Rescheduling

Reserve for bad debts:

A reserve set aside in the books of a business or a bank to provide for unexpected bad debt losses which may occur in
the current or following years. Also known as provision for doubtful accounts.
Français: Réserve pour dettes douteuses
Espa ٌ◌ol: Reserva para deudas incobrables

Reserve currency:
Currencies held by Central Banks as foreign reserves. These currencies are universally accepted in international debt
settlement and are fully convertible.
Français: Monnaie de réserve
Espa ٌ◌ol: Divisa de reserva, moneda de reserva

Reserves:
A general accounting term denoting an amount of money set aside from profits (and not distributed to shareholders as
dividends) which is transferred into a special liability account to meet unexpected future expenditure or loss.
Français: Réserves
Espa ٌ◌ol: Reservas

Reserve ratio:
A requirement by a country’s monetary authorities for commercial banks to set aside a specified percentage of their
deposits, to meet unforeseen eventualities.
Français: Ratio de réserve
Espa ٌ◌ol: Coeficiente de reservas

Residual or residual (value):

In leasing, the value of equipment at the end of the term of lease.
Français: Résiduel ou valeur résiduelle
Espa ٌ◌ol: Valor residual, valor de recuperaci َ◌n

Residual insurance:
An insurance policy stipulating that equipment will have a certain residual value after a period of time.
Français: Assurance résiduelle
Espa ٌ◌ol: Seguro residual
Residual Risk:
The proportion of an export credit which is not insured/guaranteed by an export credit agency.
Français: Risque résiduel
Espa ٌ◌ol: Riesgo residual

Restricted Tender:
An invitation to Bid addressed only to certain pre-qualified suppliers. See also Open Tender; Pre-qualification of
Bidders.
Français: Soumission limitée
Espa ٌ◌ol: Licitaci َ◌n selectiva

Retained earnings; Retained profit:

The earnings of preceding year(s), not yet paid out as dividends, which the firm has retained for reinvestment in its
operations.
Français: Bénéfices non-distribués
Espa ٌ◌ol: Beneficios no distribuidos, utilidades no distribuidas

Retention:
(1) In dividend payments, the company’s practice of holding back or retaining current earnings;
(2) In a supply contract, the sums retained by the buyer which are gradually extended to the supplier as he fulfils his
contractual obligations.
Français: Rétention
Espa ٌ◌ol: Retenci َ◌n

Return On Assets (ROA):

An indicator of profitability, calculated as net profits after tax divided by the company’s total assets. The ratio helps a
firm examine how effectively it uses its available assets. i.e. its ability to generate profits from available assets.
Français: Rentabilité des actifs
Espa ٌ◌ol: Rendimiento de los activos

Return On Equity (ROE):

An indicator of profitability, calculated as net profits after tax divided by ordinary shareholders' equity. Investors use
ROE as a measure of how efficiently a company is using the money they have provided.
Français: Rentabilité des fonds propres
Espa ٌ◌ol: Rendimiento del capital

Return on investment (ROI):

A ratio which is calculated as net profits after tax divided by investment.
Français: Rentabilité de l'investissement
Espa ٌ◌ol: Rendimiento de las inversiones
Revaluation:
(1) The upward revision in the value of a company's assets;
(2) The upward movement of an exchange rate which is pegged to other currencies or gold, by a formal and official
action of the country’s monetary authorities. Opposite: Devaluation.
Français: Réévaluation
Espa ٌ◌ol: Revalorizaci َ◌n, revaloraci َ◌n

Revocable letter of credit:

See Letter of credit.
Français: Lettre de crédit révocable
Espa ٌ◌ol: Carta de crédito revocable

Revolving credit:
A credit which can be automatically renewed without additional negotiation with the bank. It is available up to a
specified amount which remains constant during a given period of time, such that whenever it is drawn upon, it
becomes available again for its full amount. The lender is legally committed to make available to the borrower the
funds agreed upon, while the client can withdraw funds according to his needs. A revolving credit may be granted for
short-term credits (less than one year), but also for medium term financing (up to three years). The borrower must pay
a commitment fee for the unused amount of the credit facility (usually around 0.5%), in addition to the interest rate
charges on the borrowed funds (about 0.5% above the short-term rate). Compare with Overdraft.
Français: Crédit revolving (renouvelable)
Espa ٌ◌ol: Crédito rotatorio, crédito renovable

Revolving Letter of credit:

See letter of credit.
Français: Lettre de crédit revolving (renouvelable)
Espa ٌ◌ol: Carta de crédito rotatoria

Risk averse:
A person who prefers investments characterised by low levels of risk. Opposite of Risk taker.
Français: Répugnance au risque
Espa ٌ◌ol: Agente econ َ◌mico que rehuye el riesgo

Risk Lay off:

The shifting of all or part of the commercial or political risk to an ECA, commercial bank or both.
Français: Déplacement de risque
Espa ٌ◌ol: Traspaso de riesgos
Risk taker:
A person hoping to gain high expected returns on investments in return for taking on higher amounts of risk. Opposite
of Risk averse.
Français: Preneur de risque
Espa ٌ◌ol: Agente econ َ◌mico dispuesto a aceptar riesgos

Risk Retention:
The portion of the invoice value or portion financed by a bank, not covered by the guarantee/insurance, which is
retained for the account of the exporter and/or the commercial bank. The exporter's risk retention may sometimes be
purchased by the bank without recourse.
Français: Rétention de risque
Espa ٌ◌ol: Retenci َ◌n del riesgo

Roll over:
A financial technique whereby funds received from a maturing security are reinvested in a new issue of a similar
security.
Français: Roll over
Espa ٌ◌ol: Renovaci َ◌n

Roll-over credit:
A medium to long-term loan which is periodically re-priced at a pre-determined interest rate spread over the reference
interest rate. Most medium-long term loans on the Euromarket are on a roll-over basis, where the interest rate is
usually reset every three, six or twelve months and the basis for the periodic interest rate adjustment is the current
London Interbank Offered rate (LIBOR).
Français: Crédit "roll-over"
Espa ٌ◌ol: Crédito de refinanciaci َ◌n

Royalties:
The payments made for the use of a patent.
Français: Droits d'auteur
Espa ٌ◌ol: Regal‫ي‬as, derechos de patente

Rules of origin:
Rules which set the criteria for determining the "economic nationality" of a product. They serve as a differentiating
mechanism to determine whether a particular discriminatory trade arrangement, providing for either preferential or
detrimental treatment, will be applied to a given product.
Français: Règle d'origine
Espa ٌ◌ol: Normas de origen
S
Sale and leaseback:
A transaction whereby a person or a company purchases an asset from its owner and then Leases it back to him. The
lessee therefore receives the sale price and continues to enjoy the use of the asset against payment of the lease fee.
Français: Vente couplée à un crédit-bail
Español: Venta y retrocesión en arrendamiento

Sales Representatives:
An Agent who distributes, represents, provides sale services or sells goods on behalf of a supplier from the same or
another country.
Français: Représentant de ventes
Español: Representante de ventas

Salvage value:
The estimated selling price of an asset (such as plant or equipment) once its Book value has been fully Depreciated.
Français: Valeur de récupération
Español: Valor residual

Samurai bonds:
Yen-denominated Bonds issued in Japan by foreign borrowers. Compare with Bulldog bonds and Yankee bonds.
Français: Obligations Samouraï
Español: Bono samurai

Samurai lease:
A yen-denominated Lease subsidized by MITI to finance the purchase of equipment located outside Japan.
Français: Bail Samouraï
Español: Arrendamiento Samurai

Saving bank:
A bank whose main business is accepting interest-bearing Savings deposits of varying amounts.
Français: Banque d'épargne
Español: Caja de ahorros

Savings deposits:
Accounts which pay interest, generally at below-market interest rates. They do not have a specific maturity and may
usually be withdrawn upon demand.
Français: Dépôts d'épargne
Español: Depósito (en caja) de ahorro
Script certificate:
(1) A written obligation by the bank, acting as paying agent for a security issue, to deliver the definitive certificates as
soon as issued to the subscriber.
(2) A type of Waybill accompanying merchandise shipments.
Français: Script certificate
Español: Certificado provisional, título provisional

SDR:
Abbreviation for Special Drawing Right.
Français: DTS
Español: SDR

Second of exchange:
The duplicate of a draft drawn in original and duplicate.
Français: Deuxième de l'échange
Español: Duplicado de una letra de cambio

Secondary market:
A market where securities are traded after having been issued and distributed on the Primary market. This is the
market for "second-hand" trading of financial instruments. Most trading is done on the secondary markets. The New
York Stock Exchange and other world stock exchanges, bond markets, etc. are all secondary markets.
Français: Marché secondaire
Español: Mercado secundario

Secured creditor:
A creditor who owns debt obligations backed by pledged assets.
Français: Créancier garanti
Español: Acreedor garantizado

Securities:
Debt certificates (such as Notes, Equity, loan stocks, Bonds or other debt instruments) which prove the ownership (or
rights of ownership) of the same.
Français: Titres
Español: Títulos, valores, efectos

Securitization:
(1) The securing of a loan or another debt instrument by the pledge of assets.
(2) The phenomenon whereby corporate borrowers find it cheaper to raise money by issuing negotiable securities on
the Capital market, rather than borrowing from the bank.
Français: Sécuritization
Español: Securitization

Security lending:
The lending of securities over a period of time.
Français: Prêt de titres
Español: Préstamo en valores

Security requirement:
A guarantee of payment required by export credit agencies before agreeing to extend cover in certain markets,
depending on the legal and administrative system of the borrowing countries. Such a guarantee usually consists of an
irrevocable Letter of credit, a confirmed irrevocable letter of credit or a guarantee issued by the local government or
Central Bank.
Français: Exigence de garantie
Español: Requisición de garantía

Self-liquidating loan:
A loan extended to finance the purchase of current assets. The sale of such assets provides the cash to repay the
loan.
Français: Prêt auto-amortissable
Español: Préstamo autoamortizable

Seller (writer) of an option:

The seller of an option is committed to deliver/buy the underlying security if the buyer of the option exercises his right
on a Call/Put option at the strike price.
Français: Vendeur d'une option
Español: Vendedor de una opción

Seller's option:
A provision in a contract which allows the seller to vary the quantities to be delivered by a certain percentage. The
contract may also provide options on any other contractual clause, for example the delivery schedule.
Français: Option du vendeur
Español: Opción del vendedor

Selling group:
This refers to the banks and other financial institutions brought together by a Syndicate manager to sell or market a
new issue of securities to the public.
Français: Groupe de vente
Español: Sindicato de venta, sindicato de colocación
Semi-convertible currency:
A currency which may be bought or sold only through the Central Bank and at specific fixed exchange rate.
Français: Monnaie-semi convertible
Español: Divisa parcialmente convertible

Separate entity approach:

A tax system whereby each economic unit is taxed when it receives income, e.g. a firm will be taxed on its profits and
the firm’s shareholders will also be taxed on the Dividends paid to them from the firm's profits.
Français: Approche séparée des entités
Español: Enfoque unitario

Settlement dates:
The specified days on which the Forward and futures transactions previously concluded are paid, and delivery of the
underlying assets is made (i.e. the Liquidation dates).
Français: Dates de règlement
Español: Fecha de liquidación

Share capital (UK); Capital stock (US):

The amount of money subscribed by the shareholders, At par, to a company.
Français: Capital actions, Capital de dotation
Español: Capital en acciones, capital social

Shareholders:
The persons or entities owning a share in a corporation. Compare with Bondholders.
Français: Actionnaires
Español: Accionista

Shareholders' equity:
The Book value of the company’s net assets (i.e. total assets less total liabilities).
Français: Fonds propres
Español: Patrimonio neto

Share premium:
See Paid in surplus.
Français: Prime sur action
Español: Share premium

Share index:
An index showing the changes in the average prices of shares or a group of shares on the stock market.
Français: Indice sur actions
Español: Indice de cotización de las acciones

Ship's manifest:
A written instrument signed by the captain of a vessel, listing the individual shipments constituting the vessel's cargo.
Français: Manifeste du bateau
Español: Manifiesto de buque

Shipment:
All of the cargo carried under the terms of a single bill of lading .
Français: Expédition
Español: Expedición, embarque

Shogun bonds:
Non-yen denominated bonds issued in Japan by non-residents. See also Foreign bonds.
Français: Obligations Shogun
Español: Bono shogun

Short hedge:
The sale of a futures contract to hedge a market position, i.e. to eliminate or decrease the risk of a decline in the value
of an asset (securities, commodities, foreign exchange etc.), or to anticipate a borrowing need. Opposite: Long hedge.
Français: Vendre à terme
Español: Cobertura con posición corta, cobertura corta

Shogun lease:
A cross border loan (characterized as a Lease) offered by Japanese leasing companies, which may be used as
leverage debt in a Leverage lease or simply as a private placement.
Français: Bail Shogun
Español: Arrendamiento shogun

Short position:
The situation of an investor who has sold securities or commodities without actually owning them, on the expectation
that the price of these securities or commodities will fall. A short position must eventually be covered by an offsetting
purchase of the securities or commodities sold. Opposite: Long position.
Français: Position "short"
Español: Posición corta

Short-term commitments:
Commitments which provide for settlement within a relatively short period of time, usually six months (though short-
term may sometimes refer to commitments with repayment terms of up to two years). Short-term credit is usually
related to the sale of consumer goods and raw materials.
Français: Engagements à court terme
Español: Compromisos a corto plazo

Sight deposits:
Deposits which may be transferred or withdrawn on demand from a bank. They typically earn little or no interest. In
most countries the main kind of sight deposit account is a cheque account. Compare with Saving deposits.
Français: Dépôts à vue
Español: Depósito a la vista

Sight draft; Sight bill:

A bill of Exchange which becomes due for payment as soon as it is presented to the party obligated to pay, and in
general a draft payable upon presentation to the drawee. Compare with Date draft, time draft.
Français: Traite à vue, Effet à vue
Español: Letra a la vista, efecto a la vista

Simple interest:
The interest rate on a loan based only on the initial amount of the loan. Over time, the interest charges grow in a linear
fashion. e.g. a $1000 loan earning simple interest of 10% per annum would accumulate to $1100 at the end of the first
year, $1200 to the end of the second year, etc. Compare with Compound interest.
Français: Intérêt simple
Español: Interés simple

Sinking Fund:
A sum of money usually set aside at regular intervals which will earn compound interest, ultimately sufficient to meet a
known future capital commitment or loan repayment. Sinking funds may, for instance, be used to finance the
replacement of Fixed assets at the end of their useful life or to redeem loans, stocks or other debentures upon
maturity.
Français: Fonds d'amortissement
Español: Fondo de amortización

Sinking fund requirement:

A condition sometimes included in corporate bond contracts whereby the issuer is required to withdraw a specified
portion of debt each year. Any principal due at maturity is called the balloon maturity.
Français: Exigence relative au fonds d'amortissement
Español: Requisito de fondo de amortización

Society of Worldwide Interbank Financial Telecommunication:

See Swift.
Français: Society of Worldwide Interbank Financial Telecommunication
Español: Sociedad para las Telecomunicaciones Financieras Interbancarias Mundiales

Soft currency:
This refers to a weak currency which is a less desirable means of payment than other currencies. Countries with weak
currencies are those which tend to have frequent currency devaluation, balance of payments difficulties or political
instability. A soft currency is usually not fully convertible to all currencies but only perhaps to some other "weak"
currencies. Contrast with Hard or strong currency.
Français: Monnaie faible
Español: Moneda débil, moneda blanda

Soft loan:
A loan by a government or multilateral Development bank which carries no (or below market rate) interest, although
there is usually a small annual service charge. It is typically extended to developing countries and has a long
repayment period. See also Concessional funds.
Français: Prêt bonifié
Español: Préstamo en condiciones favorables

Solvency:
The ability of a borrower to meet obligations as they become due. Opposite: Insolvency.
Français: Solvabilité
Español: Solvencia

Solvency ratio:
The ratio between a bank's capital and its assets. See also Capital ratio.
Français: Rapport de solvabilité
Español: Razón de solvencia

Special drawing right (SDR):

A unit of account issued and allocated by the IMF to its member states. It represents an international, non convertible
paper money created by the IMF, which member countries may use in case of deficit in their balance of international
payments to settle debts with another country, or with the IMF.
Français: Droits de tirages spéciaux (DTS)
Español: Derecho especial de giro (DEG)

Special Marine Policy:

See Ocean marine insurance policy.
Français: Police maritime spéciale
Español: Póliza marítima especial
Special Purpose Corporation (SPC):
An independent corporation especially created, even if sometimes with a nominal capital, with the purpose of holding
property titles, channelling funds for an export project or project financing.
Français: Société à but spécial
Español: Sociedad de carácter especial

Specific duty:
See duty.
Français: Droit spécifique
Español: Derecho específico

Specific Policy/Coverage:
A policy covering an individual export contract against failure to receive the sums due from the foreign buyer. An ECA
may charge a higher premium for Specific Coverage than for Comprehensive Coverage because of the "selected risk"
nature of the coverage.
Français: Police/Couverture spécifique
Español: Póliza específica

Speculator:
A person who takes Positions on the market in an attempt to anticipate price changes, with the aim of earning a profit.
A speculator does not use the market in connection with the production, processing, marketing or handling of a
product. Compare with Trader.
Français: Spéculateurs
Español: Especulador

Spot market:
The market for the purchase and sale of commodities, securities and other financial instruments for immediate
delivery, as opposed to a Futures market which provides for delivery at some future point in time. By consensus,
immediate delivery is understood as two business days.
Français: Marché au comptant
Español: Mercado de entrega inmediata, mercado al contado

Spot price:
The current market price of an actual physical commodity or a security. Also called cash price.
Français: Prix au comptant
Español: Tipo al contado, cotización al contado

Spot rate:
In foreign exchange dealings this is the rate quoted for immediate delivery of a foreign currency.
Français: Taux au comptant
Español: Precio de entrega inmediata
Spread:
(1) The gap between the Bid and ask prices of a security, commodity or foreign exchange.
(2) The difference between the spot and forward rates (in foreign exchange trading), or price (for trade in commodities
or securities).
Français: Ecart de cours
Español: Margen, diferencial

Stagflation:
A term indicating the combination of slow economic growth (stagnation) and price increases (inflation).
Français: Stagnation avec inflation
Español: Estancamiento con inflación, estanflación

Standard and Poors:

One of the top credit Rating agencies.
Français: Standard and Poors
Español: Standard and Poors

Standard International Trade Classification (SITC):

An international trade classification system developed by the United Nations in 1950 and used solely by international
organizations.
Français: Standard International Trade Classification (SITC)
Español: Clasificación Uniforme para el Comercio Internacional (CUCI)

Standby agreement:
In a securities issue, this is an agreement by the underwriter to purchase any stock not taken up by public investors, in
return for a standby fee.
Français: Accord Standby
Español: Acuerdo de compromiso contingente

Stand-by arrangement:
An arrangement whereby members of the IMF have the right to borrow a certain percentage of the quota allocated to
them by the Fund, for a given period of time. The stand-by arrangement specifies the amount the country may borrow,
when, for how long and under what terms. The arrangements are extended for up to three years and are typically
intended as bridging loans for countries with balance-of-payment difficulties.
Français: Accord "standby"
Español: Acuerdo de derecho de giro

Standby Credits:
These are arrangements to lend money in case of need, usually at market rates and sometimes with a commitment
fee. Overdraft facilities are sometimes used as standbys by corporate borrowers.
Français: Crédits "standby"
Español: Línea de crédito

Standby Letter of Credit:

A letter of credit which is usually issued as a guarantee against the non-fulfilment of a contract. Standby letters of
credit do not constitute a means of payment but are a guarantee of indemnity in case of non-execution of the contract
by the exporter. They are generally used to guarantee financial obligations or contractual performance obligations.
Compare with Letter of credit.
Français: Lettre de crédit "Standby"
Español: Carta de crédito contingente

State trading enterprises (STEs):

Government agencies especially established for the conduct of international trading activities, such as government-
operated import/export monopolies and marketing boards with special or exclusive privileges to import and export.
They are sometimes also engaged in the direct manufacturing of certain export products.
Français: Entreprise étatique de négoce
Español: Empresas comerciales del Estado, empresas de comercio de Estado

Stepped FRN:
A Floating Rate Note where the spread changes over time or on a pre-set basis.
Français: FRN à paliers
Español: Bono con interés flotante y escalonado

Stocks:
(1) Ownership of a corporation which is represented by its Shares.
(2) Shares traded on the stock exchange.
(3) Inventories held by companies in warehouses.
Français: Actions; Inventaire
Español: Existencias

Stock-output ratio:
The ratio of Inventories to the company's total output.
Français: Ratio: Stock-production
Español: Relación entre existencias y producción

Straight debt:
A fixed interest rate bond (such as an Eurobond) or loan without the option of Conversion into equity.
Français: Dette sans option
Español: Bono de interés fijo
Straight letter of credit:
A letter of credit in which the opening bank simply promises to pay the beneficiary.
Français: Lettre de crédit normale (directe)
Español: Carta de crédito irrevocable

Straights (straight bonds; straight issues):

A bond or other security issued without any Conversion or Warrant clause, but which yields a fixed interest rate for the
entire period up to maturity.
Français: Ordinaires (obligations ordinaires, émissions ordinaires)
Español: Obligación ordinaria

Strike price:
The price at which Put options and Call options can be exercised (i.e. to sell for a put or to buy for a call). The options
are 'in the money' or 'out the money' depending on whether the difference between the strike price and the spot price
on the markets is positive or negative. The strike price is sometimes called the exercise price.
Français: Prix d'exercice
Español: Precio de ejercicio

Subject to collection:
A clause whereby the bank has the right to reverse or cancel a credit entry if the counter value of the Promissory notes
or other debt certificates (such as Bills of exchange, Drafts and cheques) cannot be collected.
Français: Sujet à encaissement
Español: Sujeto a cobranza

Subordinated bond:
An unsecured bond which ranks after secured debt, Debenture bonds and, in the case of Liquidation of the issuing
company, often also after some general creditors.
Français: Obligation subordonnée
Español: Bono secundario

Subordinated debt:
In the event of bankruptcy of the borrower, senior debt takes priority over subordinated debt in terms of repayment of
the relative debt claims.
Français: Dette subordonnée
Español: Deuda no prioritaria

Subordination:
(1) A clause sometimes inserted in the terms of a share issue whereby the rights of the shareholders rank after the
rights of some, or all, unsecured creditors of the borrower in the event of his Liquidation.
(2) A provision in a bond’s issue whereby, in the event of a new bond issue, the new lenders' claims are subordinated
to the claims of the existing bondholders.
Français: Subordination
Español: Subordinación

Subordination strategy:
A policy of the Paris Club creditors whereby loans extended after the cut-off date are not subject to Rescheduling.
Français: Stratégie subordonnée
Español: Estrategia de subordinación

Subscription policy:
A policy defining the general conditions of the guarantee but leaving the exporter the choice whether to subscribe or
not.
Français: Politique de souscription
Español: Póliza de subscripción

Sunk costs:
Costs which have already been incurred and cannot be reversed.
Français: Sunk costs
Español: Costo irrecuperable

Suppliers' credit:
A financing arrangement under which an exporter extends credit to a foreign importer to finance his purchase. Usually
the importer pays a portion of the contract value in cash and issues a Promissory note or accepts a draft as evidence
of his obligation to pay the balance over a period of time. The exporter thus accepts a deferred payment from the
importer, and may be able to obtain cash payment by discounting or selling the draft or promissory notes created with
his bank. Compare with Buyer’s credit.
Français: Crédit fournisseur
Español: Crédito al proveedor, crédito suministrador, crédito de proveedores

Supplier Credit Financing:

A trade financing arrangement by which a bank or an ECA directly extends a loan to the exporter, often collateralized
by the exporter’s pledge of his export receivables. The bank or ECA may also purchase or discount the exporter’s
receivables with full, limited or no recourse against the supplier.
Français: Financement sous forme de Crédit fournisseur
Español: Financiamiento de crédito suministrador

Supply-or-pay contract:
A contract under which a supplier commits himself to supply a raw material, product or service for a certain price and
at a stated period, or to pay for an alternative supply if he cannot provide it himself as agreed.
Français: Contrat de type "Fourni-ou-paie"
Español: Contrato de suministro o pago

Surety:
American bonds, guarantees and obligations such as performance sureties, completion bonds etc.
Français: Garantie
Español: Surety

Surety credit:
A credit guaranteed by a bond issue.
Français: Crédit garanti
Español: Crédito de garantía

Sushi bonds:
A Eurobond issued by a Japanese corporation.
Français: Obligation Sushi
Español: Bono sushi

Swap:
In general, an arrangement whereby two parties lend to each other on different terms, e.g. in different currencies,
and/or at different interest rates (fixed versus floating).
(1) In a foreign currency swap, two parties exchange on the Spot market (usually at the prevailing spot rate) sums of
money expressed in different currencies and these sums are re-exchanged forward. Fixed interest rates are also
calculated on the swapped principal amounts. Foreign currency swaps are often used by Central Banks to support the
domestic currency, through the swap of the domestic currency for a loan from another Central Bank.
(2) An interest rate swap is an exchange, between two parties, of the cash flows from fixed rate as against floating rate
investments, where the cash flows are usually in the same currency and where there is no exchange of principal.
Français: Swap
Español: Swap

Swaption:
An option on a swap.
Français: Swaption
Español: Swaption

SWIFT:
An acronym for The Society for Worldwide Interbank Financial Telecommunication. This is a closed network providing
secure global communication between financial institutions in over 185 countries.
 Français: SWIFT
Español: SWIFT

Switching:
See Countertrade.
Français: Switching
Español: Switching

Syndicate; consortium:
An association or group of individuals or companies which jointly carries out a financial or industrial project, such as
the underwriting of a new bond issue.
Français: Syndicat, Consortium
Español: Consorcio

Syndicated credit; Syndicated loan:

A credit or loan granted jointly by a group of banks, typically when the loan is too large to be provided by a single bank
(such as eurocredits). Syndicated loans are managed by a lead bank which assesses the borrower's needs and tries
to get other banks to participate in the loan. The syndicate leader receives a management fee.
Français: Crédit syndiqué, prêt syndiqué
Español: Crédito sindicado, préstamo sindicado

T
Take-and-pay contract:
A contractual term indicating that the buyer is required to take and pay for goods or services only if delivered.
Français: Contrat du type : "Prend-et-paye"
Espa ٌ◌ol: Contrato de compra contra entrega

Take-or-pay contract:
A contractual term whereby the buyer is unconditionally obligated to take any product or service that he is offered (and
pay the corresponding purchase price), or to pay a specified amount if he refuses to take the product or service.
Français: Contrat du type : "Prend-ou-paye"
Espa ٌ◌ol: Contrato firme de compra, contrato sin derecho de rescisi َ◌n

Take over:
A general term referring to the transfer of control of a company from one group of shareholders to another group of
shareholders.
Français: Prise de contrôle, achat
Espa ٌ◌ol: Adquisici َ◌n, absorci َ◌n
Tare weight:
The weight of a container and/or the packing materials holding the shipped merchandise. Compare with Gross weight.
Français: Poids à vide
Espa ٌ◌ol: Tara

Tariff:
A tax imposed by a government on goods as they enter (or leave) the country. It may be imposed for Protectionist
reasons and/or to generate revenues for the government. Tariff types include ad valorem, specific, variable or some
combination of these. See also duty.
Français: Tarif
Espa ٌ◌ol: Arancel

Tariff anomaly:
A term indicating a situation where a tariff applied on raw materials or semi-manufactured goods is higher than the
corresponding tariff on finished products.
Français: Tarif anormal
Espa ٌ◌ol: Anomal‫ي‬a arancelaria

Tariff escalation:
A situation where tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate and
tariffs on raw materials are low or non-existent.
Français: Tarif par paliers croissants
Espa ٌ◌ol: Progresi َ◌n arancelaria

Tariff preferences:
See Preferences.
Français: Tarifs préférentiels
Espa ٌ◌ol: Tariff preferences

Tariff quotas:
A two tier tariff system, i.e. when imports within a set quota may enter at a lower tariff rate than imports exceeding
such a quota.
Français: Tarifs par quotas
Espa ٌ◌ol: Contingente arancelario

Tariff schedule:
A comprehensive list of the goods which may be imported into a country, together with the relative tariff rates
applicable to each category.
Français: Barème de tarifs
Espa ٌ◌ol: Arancel de aduanas

Tax haven:
A country with low levels of taxation (including on income from foreign sources) and/or liberal tax incentives for
undertaking specific economic activities.
Français: Paradis fiscal
Espa ٌ◌ol: Para‫ي‬so fiscal

Tax haven subsidiary:

A subsidiary of a company, established in a tax haven in order to minimize the burden of taxation.
Français: Filiale domiciliée dans un paradis fiscal
Espa ٌ◌ol: Filial en para‫ي‬so fiscal

Tender; Bid:
A general offer made by a company or a public sector agency for the purchase of specific goods and services. The
potential suppliers respond to the tender notice or invitation by submitting their proposals, which specify the technical,
commercial and financial aspects of how they would carry out work. See also Open Tender; Restricted Tender.
Français: Soummission, offre
Espa ٌ◌ol: Licitaci َ◌n, oferta

Tender bond:
Another name for a bid bond.
Français: Tender bond
Espa ٌ◌ol: Tender bond

Tender to contract period:

The period of time ranging between the submission of a tender and the actual signature of the contract.
Français: Période comprise entre la soumission et la signature
Espa ٌ◌ol: Per‫ي‬odo de licitaci َ◌n a contrato

Tenor:
The term established for the payment of a draft or a loan, i.e. the draft or loan's maturity. The tenor may be either
(1) At sight, i.e. payable upon presentation.
(2) Time, i.e. payable at some specified future date, for example thirty days after sight or sixty days after bill of lading
date.
Français: Echéance
Espa ٌ◌ol: Vencimiento
Term bonds:
Often referred to as bullet-bonds, whose principal is payable at maturity.
Français: Obligations sans amortissement
Espa ٌ◌ol: Term bond

Term loan:
A business loan with a final maturity of more than one year, payable according to a specified schedule.
Français: Prêt à terme
Espa ٌ◌ol: Préstamo a plazo, crédito a plazo

Terms of trade:
An index expressed as a ratio between the price of exports and the price of imports. When the index rises the terms of
trade improve, and vice versa. Broadly speaking, the index measures the purchasing power of a country's exports in
terms of the imports it buys (i.e. the quantity of imports which can be bought with the country's export revenues.
Français: Termes de l'échange
Espa ٌ◌ol: Relaci َ◌n de intercambio

Through bill of lading:

A single bill of lading covering the inland transport of a cargo from the point of origin to that of final delivery to the
ultimate consignee, when two or more modes of transportation are used. Ocean shipments however usually require
two separate documents. i.e. an Inland bill of lading for the domestic carriage and an Ocean bill of lading for
international carriage. Through bills of lading cannot, therefore, be used. See also Air Waybill.
Français: Connaissement direct
Espa ٌ◌ol: Conocimiento de embarque directo

Tick:
The minimum price fluctuation of a security or commodity, either up or down.
Français: Tick
Espa ٌ◌ol: Movimiento m‫ي‬nimo de precios, variaci َ◌n de precio

Tied aid credit:

This refers to the practice of providing a grant and/or a concessional loan, either alone or combined with an export
credit, which is linked to an export sale from the donor country.
Français: Crédit couplé à une aide
Espa ٌ◌ol: Crédito de ayuda condicionada, crédito de ayuda vinculada

Tied loan:
A loan made by a government agency whereby the foreign borrower is required to spend the related financial
resources in the lender's country.
Français: Prêt lié
Espa ٌ◌ol: Préstamo condicionado, empréstito de uso condicionado
Time deposits; fixed term deposits:
Money placed on deposit for a fixed period determined in advance, in return for relatively high interest. This is
indicated in the bank's balance sheet together with its fixed due date. This type of deposit may not usually be
transferred or withdrawn without notice. If the depositor chooses to withdraw the money before the due time, he
sacrifices all or part of the interest. Notice of withdrawal might be waived for small withdrawals. Sometimes referred to
as saving deposits. Related: Certificate of deposit.
Français: Dépôts à terme, dépôts à terme fixe
Espa ٌ◌ol: Dep َ◌sito a plazo, dep َ◌sito término

Time draft:
A draft calling for payment at a later period than the delivery of the goods or services. Compare with Date Draft, Sight
Draft.
Français: Traite à terme
Espa ٌ◌ol: Letra de cambio a plazo

Tolling contract:
Another name for take-or-pay contract.
Français: Tolling contract
Espa ٌ◌ol: Tolling contract

Trade acceptance:
A draft drawn by the seller of goods on the buyer and accepted by the latter for payment at specified future date.
Français: Acceptation commerciale
Espa ٌ◌ol: Aceptaci َ◌n comercial

Trade account:
See Balance of trade.
Français: Compte commercial
Espa ٌ◌ol: Trade account

Trade creditors (UK); Accounts payable (US):

See Accounts payable.
Français: Dettes passives / Créanciers commerciaux (GB)
Espa ٌ◌ol: Cuentas a pagar

Trade related investment measures (TRIMs):

The Agreement on TRIM's, negotiated in the Uruguay Round, recognizes that certain investment measures can restrict
and distort trade. It requires countries to phase out TRIM's which have been identified as being inconsistent with GATT
rules. The phasing out period, from 1 January 1995, was two years for developed countries, five years for developing
countries and seven years for transitional economies.
Français: Mesures au sujet des investissements en rapport avec le commerce (TRIMs)
Espa ٌ◌ol: Medidas en materia de inversiones relacionadas con el comercio (MIC)

Traders:
An individual, or a company, who takes positions on the market with the objective of making a profit, typically
consisting of the Spread between the Bid and the Ask price or rate. Traders can make markets by trading the flow.
See also Speculators.
Français: Courtiers
Espa ٌ◌ol: Agente

Tranche:
(1) A term used to refer to IMF's borrowing facilities. The reserve tranche refers to the 25% of a member's quota paid
in reserve assets.
(2) In security markets, the term indicates a part issue of securities.
Français: Tranche
Espa ٌ◌ol: Tramo

Transfer risk:
The risk that the borrower will not be able to convert local currency into foreign exchange, therefore being unable to
make the due debt-service payments. Such risk typically arises from currency exchange restrictions imposed by the
government of the borrower's country. This is a particular kind of political risk.
Français: Risque de transfert
Espa ٌ◌ol: Riesgo de transferencia

Transaction costs:
The time, effort and expense involved in the transfer an asset from the seller to the buyer (for example, search costs,
commission fees, costs of transport, etc.).
Français: Coût de transaction
Espa ٌ◌ol: Costo de transacci َ◌n

Transit tariff:
A tax placed on goods transiting (i.e. passing through) a country.
Français: Droit de transit
Espa ٌ◌ol: Arancel de tr‫ل‬nsito

Transmittal letter:
A letter containing a detailed description of the shipped goods, the documents being transmitted together with
instructions for the use of such documents. Any special instructions are also included.
Français: Lettre de transmission
Espa ٌ◌ol: Carta anexada

Treasury bills (T-Bills):

Short-term papers issued by governments in many countries, with maturity of one year or less.
Français: Bons du Trésor
Espa ٌ◌ol: Bono del Tesoro, letra del Tesoro

Triangular arbitrage:
The process of buying and selling an asset, commodity or foreign exchange at a profit, due to price discrepancies,
where three different currencies are involved. See also Arbitrage.
Français: Arbitrage triangulaire
Espa ٌ◌ol: Arbitraje triangular

Trust receipt:
A receipt for goods which are to be held in trust for the lender, who retains title to the merchandise. The lender may
release such goods to the buyer, who may use them for manufacturing or sales purposes, with the obligation of
maintaining the goods under trust (or the proceeds from their sale) distinct from the remainder of his assets, ready for
repossession by the lender.
Français: Reçu fiduciaire
Espa ٌ◌ol: Recibo fiduciario

Trustee:
An individual or company who holds and administers a sum of money or property on behalf an individual, group or
organization.
Français: Fiduciaire
Espa ٌ◌ol: Administrador fiduciario, fideicomisario

Turn-Key:
A term used in a construction contract, whereby the contractor has a contractual responsibility to build and hand over
to a client a completed and tested plant, operating to specification. The contractor is thus totally responsible for all
activities from design through to final completion of the project.
Français: Clé en main
Espa ٌ◌ol: Llaves en mano

Turnover tax:
A form of indirect taxation imposed on a firm's sales revenues.
Français: Taxe sur le chiffre d'affaires
Espa ٌ◌ol: Impuesto sobre el volumen de negocio, impuesto sobre la cifra de venta
T
Take-and-pay contract:
A contractual term indicating that the buyer is required to take and pay for goods or services only if delivered.
Français: Contrat du type : "Prend-et-paye"
Espa ٌ◌ol: Contrato de compra contra entrega

Take-or-pay contract:
A contractual term whereby the buyer is unconditionally obligated to take any product or service that he is offered (and
pay the corresponding purchase price), or to pay a specified amount if he refuses to take the product or service.
Français: Contrat du type : "Prend-ou-paye"
Espa ٌ◌ol: Contrato firme de compra, contrato sin derecho de rescisi َ◌n

Take over:
A general term referring to the transfer of control of a company from one group of shareholders to another group of
shareholders.
Français: Prise de contrôle, achat
Espa ٌ◌ol: Adquisici َ◌n, absorci َ◌n

Tare weight:
The weight of a container and/or the packing materials holding the shipped merchandise. Compare with Gross weight.
Français: Poids à vide
Espa ٌ◌ol: Tara

Tariff:
A tax imposed by a government on goods as they enter (or leave) the country. It may be imposed for Protectionist
reasons and/or to generate revenues for the government. Tariff types include ad valorem, specific, variable or some
combination of these. See also duty.
Français: Tarif
Espa ٌ◌ol: Arancel

Tariff anomaly:
A term indicating a situation where a tariff applied on raw materials or semi-manufactured goods is higher than the
corresponding tariff on finished products.
Français: Tarif anormal
Espa ٌ◌ol: Anomal‫ي‬a arancelaria

Tariff escalation:
A situation where tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate and
tariffs on raw materials are low or non-existent.
Français: Tarif par paliers croissants
Espa ٌ◌ol: Progresi َ◌n arancelaria

Tariff preferences:
See Preferences.
Français: Tarifs préférentiels
Espa ٌ◌ol: Tariff preferences

Tariff quotas:
A two tier tariff system, i.e. when imports within a set quota may enter at a lower tariff rate than imports exceeding
such a quota.
Français: Tarifs par quotas
Espa ٌ◌ol: Contingente arancelario

Tariff schedule:
A comprehensive list of the goods which may be imported into a country, together with the relative tariff rates
applicable to each category.
Français: Barème de tarifs
Espa ٌ◌ol: Arancel de aduanas

Tax haven:
A country with low levels of taxation (including on income from foreign sources) and/or liberal tax incentives for
undertaking specific economic activities.
Français: Paradis fiscal
Espa ٌ◌ol: Para‫ي‬so fiscal

Tax haven subsidiary:

A subsidiary of a company, established in a tax haven in order to minimize the burden of taxation.
Français: Filiale domiciliée dans un paradis fiscal
Espa ٌ◌ol: Filial en para‫ي‬so fiscal

Tender; Bid:
A general offer made by a company or a public sector agency for the purchase of specific goods and services. The
potential suppliers respond to the tender notice or invitation by submitting their proposals, which specify the technical,
commercial and financial aspects of how they would carry out work. See also Open Tender; Restricted Tender.
Français: Soummission, offre
Espa ٌ◌ol: Licitaci َ◌n, oferta
Tender bond:
Another name for a bid bond.
Français: Tender bond
Espa ٌ◌ol: Tender bond

Tender to contract period:

The period of time ranging between the submission of a tender and the actual signature of the contract.
Français: Période comprise entre la soumission et la signature
Espa ٌ◌ol: Per‫ي‬odo de licitaci َ◌n a contrato

Tenor:
The term established for the payment of a draft or a loan, i.e. the draft or loan's maturity. The tenor may be either
(1) At sight, i.e. payable upon presentation.
(2) Time, i.e. payable at some specified future date, for example thirty days after sight or sixty days after bill of lading
date.
Français: Echéance
Espa ٌ◌ol: Vencimiento

Term bonds:
Often referred to as bullet-bonds, whose principal is payable at maturity.
Français: Obligations sans amortissement
Espa ٌ◌ol: Term bond

Term loan:
A business loan with a final maturity of more than one year, payable according to a specified schedule.
Français: Prêt à terme
Espa ٌ◌ol: Préstamo a plazo, crédito a plazo

Terms of trade:
An index expressed as a ratio between the price of exports and the price of imports. When the index rises the terms of
trade improve, and vice versa. Broadly speaking, the index measures the purchasing power of a country's exports in
terms of the imports it buys (i.e. the quantity of imports which can be bought with the country's export revenues.
Français: Termes de l'échange
Espa ٌ◌ol: Relaci َ◌n de intercambio

Through bill of lading:

A single bill of lading covering the inland transport of a cargo from the point of origin to that of final delivery to the
ultimate consignee, when two or more modes of transportation are used. Ocean shipments however usually require
two separate documents. i.e. an Inland bill of lading for the domestic carriage and an Ocean bill of lading for
international carriage. Through bills of lading cannot, therefore, be used. See also Air Waybill.
Français: Connaissement direct
Espa ٌ◌ol: Conocimiento de embarque directo

Tick:
The minimum price fluctuation of a security or commodity, either up or down.
Français: Tick
Espa ٌ◌ol: Movimiento m‫ي‬nimo de precios, variaci َ◌n de precio

Tied aid credit:

This refers to the practice of providing a grant and/or a concessional loan, either alone or combined with an export
credit, which is linked to an export sale from the donor country.
Français: Crédit couplé à une aide
Espa ٌ◌ol: Crédito de ayuda condicionada, crédito de ayuda vinculada

Tied loan:
A loan made by a government agency whereby the foreign borrower is required to spend the related financial
resources in the lender's country.
Français: Prêt lié
Espa ٌ◌ol: Préstamo condicionado, empréstito de uso condicionado

Time deposits; fixed term deposits:

Money placed on deposit for a fixed period determined in advance, in return for relatively high interest. This is
indicated in the bank's balance sheet together with its fixed due date. This type of deposit may not usually be
transferred or withdrawn without notice. If the depositor chooses to withdraw the money before the due time, he
sacrifices all or part of the interest. Notice of withdrawal might be waived for small withdrawals. Sometimes referred to
as saving deposits. Related: Certificate of deposit.
Français: Dépôts à terme, dépôts à terme fixe
Espa ٌ◌ol: Dep َ◌sito a plazo, dep َ◌sito término

Time draft:
A draft calling for payment at a later period than the delivery of the goods or services. Compare with Date Draft, Sight
Draft.
Français: Traite à terme
Espa ٌ◌ol: Letra de cambio a plazo

Tolling contract:
Another name for take-or-pay contract.
Français: Tolling contract
Espa ٌ◌ol: Tolling contract
Trade acceptance:
A draft drawn by the seller of goods on the buyer and accepted by the latter for payment at specified future date.
Français: Acceptation commerciale
Espa ٌ◌ol: Aceptaci َ◌n comercial

Trade account:
See Balance of trade.
Français: Compte commercial
Espa ٌ◌ol: Trade account

Trade creditors (UK); Accounts payable (US):

See Accounts payable.
Français: Dettes passives / Créanciers commerciaux (GB)
Espa ٌ◌ol: Cuentas a pagar

Trade related investment measures (TRIMs):

The Agreement on TRIM's, negotiated in the Uruguay Round, recognizes that certain investment measures can restrict
and distort trade. It requires countries to phase out TRIM's which have been identified as being inconsistent with GATT
rules. The phasing out period, from 1 January 1995, was two years for developed countries, five years for developing
countries and seven years for transitional economies.
Français: Mesures au sujet des investissements en rapport avec le commerce (TRIMs)
Espa ٌ◌ol: Medidas en materia de inversiones relacionadas con el comercio (MIC)

Traders:
An individual, or a company, who takes positions on the market with the objective of making a profit, typically
consisting of the Spread between the Bid and the Ask price or rate. Traders can make markets by trading the flow.
See also Speculators.
Français: Courtiers
Espa ٌ◌ol: Agente

Tranche:
(1) A term used to refer to IMF's borrowing facilities. The reserve tranche refers to the 25% of a member's quota paid
in reserve assets.
(2) In security markets, the term indicates a part issue of securities.
Français: Tranche
Espa ٌ◌ol: Tramo

Transfer risk:
The risk that the borrower will not be able to convert local currency into foreign exchange, therefore being unable to
make the due debt-service payments. Such risk typically arises from currency exchange restrictions imposed by the
government of the borrower's country. This is a particular kind of political risk.
Français: Risque de transfert
Espa ٌ◌ol: Riesgo de transferencia

Transaction costs:
The time, effort and expense involved in the transfer an asset from the seller to the buyer (for example, search costs,
commission fees, costs of transport, etc.).
Français: Coût de transaction
Espa ٌ◌ol: Costo de transacci َ◌n

Transit tariff:
A tax placed on goods transiting (i.e. passing through) a country.
Français: Droit de transit
Espa ٌ◌ol: Arancel de tr‫ل‬nsito

Transmittal letter:
A letter containing a detailed description of the shipped goods, the documents being transmitted together with
instructions for the use of such documents. Any special instructions are also included.
Français: Lettre de transmission
Espa ٌ◌ol: Carta anexada

Treasury bills (T-Bills):

Short-term papers issued by governments in many countries, with maturity of one year or less.
Français: Bons du Trésor
Espa ٌ◌ol: Bono del Tesoro, letra del Tesoro

Triangular arbitrage:
The process of buying and selling an asset, commodity or foreign exchange at a profit, due to price discrepancies,
where three different currencies are involved. See also Arbitrage.
Français: Arbitrage triangulaire
Espa ٌ◌ol: Arbitraje triangular

Trust receipt:
A receipt for goods which are to be held in trust for the lender, who retains title to the merchandise. The lender may
release such goods to the buyer, who may use them for manufacturing or sales purposes, with the obligation of
maintaining the goods under trust (or the proceeds from their sale) distinct from the remainder of his assets, ready for
repossession by the lender.
Français: Reçu fiduciaire
Espa ٌ◌ol: Recibo fiduciario
 Trustee:
An individual or company who holds and administers a sum of money or property on behalf an individual, group or
organization.
Français: Fiduciaire
Espa ٌ◌ol: Administrador fiduciario, fideicomisario

Turn-Key:
A term used in a construction contract, whereby the contractor has a contractual responsibility to build and hand over
to a client a completed and tested plant, operating to specification. The contractor is thus totally responsible for all
activities from design through to final completion of the project.

Français: Clé en main

Espa ٌ◌ol: Llaves en mano

Turnover tax:
A form of indirect taxation imposed on a firm's sales revenues.
Français: Taxe sur le chiffre d'affaires
Espa ٌ◌ol: Impuesto sobre el volumen de negocio, impuesto sobre la cifra de venta

U
Ultimate consignee:
The final recipient of the shipped goods, who will use them for the designated end use.
Français: Consignataire final
Espa ٌ◌ol: Destinatario final, consignatario final

Underlying:
The "something" (commodity, security, foreign exchange etc.) that the parties agree to exchange in a Derivative
contract.
Français: Sous-jacent
Espa ٌ◌ol: Subyacente

Underwriter:
(1) In security markets, the financial institution which agrees to purchase an unsubscribed new issue of securities at an
agreed price on a fixed day with a view to selling it publicly, for an underwriting fee.
(2) In an insurance contract, the insurer who underwrites the policy.
Français: Syndicataire
Espa ٌ◌ol: Suscriptor, Asegurador
Unfair calling cover:
An insurance cover to compensate for loss, in case of an unfair call of a Bid bond by the overseas buyer.
Français: Appel injustifié à la couverture
Espa ٌ◌ol: Cobertura de ejecuci َ◌n injusta

Unit of account:
A benchmark against which to base the value of payments. It is a specially defined unit, rather than a real payment
medium, used in international payments.
Français: Unité de compte
Espa ٌ◌ol: Unidad de cuenta

Unit of currency:
The monetary unit of a country (e.g. US dollar) or of an international monetary system (e.g. ECU).
Français: Unité monétaire
Espa ٌ◌ol: Unidad de moneda

Unitary tax:
A taxation system whereby taxes are calculated on a percentage basis of a company's world-wide operations, rather
than on the profits made in the area where the taxing authorities are located.
Français: Taxe unitaire
Espa ٌ◌ol: Impuesto unitario

Unit costs:
The costs per unit produced. Can be used to analyse a company's performance.
Français: Coûts unitaires
Espa ٌ◌ol: Costos unitarios

Unsecured credit:
A credit extended without the pledge of collateral, usually for a highly creditworthy borrower. Opposite: Secured credit.
Français: Crédit non-garanti
Espa ٌ◌ol: Crédito al descubierto, crédito no garantizado

Use-or pay contract:

Another term for take-or-pay contract.
Français: Contrat du type "Utilisez-ou-payez"
Espa ٌ◌ol: Use-or pay contract

Usuance; Usuance draft:

 The same as tenor.
Français: Usuance; Usuance draft
Espa ٌ◌ol: Usuance; usuance draft

V
Validated Export License:
A document issued by government authorities to allow the export of commodities for which written authorization is
required by law. Compare with General Export License.
Français: Licence d'export validée
Español: Licencia de exportación validada

Validity date:
The date on which a bond or guarantee expires.
Français: Date de validité
Español: Fecha de validez

Value added tax:

A method of indirect taxation whereby the tax is assessed and levied on the increase of the value of the goods as they
pass from the raw material through to the final product stage. If the production process is split between different firms,
each is taxed only on the value added to the product during the part of the production stage it is undertaking.
Français: Taxe sur la valeur ajoutée
Español: Impuesto sobre el valor añadido, IVA

Value date:
The date on which traded funds are actually delivered to the beneficiary, i.e. received by his bank, credited to his
account and made available for withdrawal. Interest accrues with effect from the value date. In the case of a spot
transaction, the value date is usually two days after the transaction has been agreed upon. In forward trade it
corresponds to the future date indicated in the forward contract.
Français: Date de valeur
Español: Fecha de valor

Vanilla issue:
An issue of securities which has no unusual features.
Français: Emission du type "Vanille"
Español: Vanilla issue

Variable interest rate:

An interest rate, for instance on a loan or a bond issue, which fluctuates during the life of the loan or bond issue. This
fluctuation is usually based on a benchmark interest rate, such as the Prime Rate or LIBOR in the case of international
credit.
Français: Taux d'intérêt variable
Español: Tipo de interés variable

Variable levy:
A Tariff which increases or decreases in response to changes in world prices of imported goods in such a way that the
import price after payment of the duty remains constant (i.e. the level of Protection remains the same.)
Français: Prélèvement variable
Español: Gravamen variable, impuesto variable

Variable price security:

A security, such as a share or a bond, which sells at a fluctuating, market-determined price.
Français: Titre à prix variable
Español: Título de precio variable

Variable-rate loan:
A loan extended at an interest rate charge which fluctuates with the Prime Rate or LIBOR or other benchmark rate.
Français: Prêt à taux variable
Español: Préstamo a tasa variable

Vehicle currency:
A currency which is extensively used by traders and bankers in international trade transactions, i.e. used as an
international medium of exchange (such as the dollar). Vehicle currencies are sometimes referred to as trading
currencies.
Français: Véhicule monétaire
Español: Moneda vehículo

Venture capital:
An investment in a start-up business, which is perceived to have excellent growth prospects but whose high level of
risk limits its access to the Capital markets. This is typical of financing extended to new companies seeking to grow
rapidly.
Français: Capital-risque
Español: Capital (de) riesgo

Vertical export trading company:

An export trading company which integrates (i.e. undertakes internally) the different stages of the production process,
from taking products from suppliers to selling them to final consumers.
Français: Société de négoce spécialisée en exportations et de type vertical
Español: Sociedad exportadora vertical
 Vertical integration:
A firm’s acquisition of the control of the different stages of the production process, from the earliest processing of raw
materials to the distribution of the final products.
Français: Intégration verticale
Español: Integración vertical

Voluntary export restraint:

An informal (and under GATT rules illegal) understanding between nations in which the exporting country, in order to
reduce trade friction, voluntarily agrees (although usually under pressure from the importing country) to limit its exports
of particular goods to a specific importing country. These arrangements do not involve any obligation by the importing
country to provide "compensation" to the exporting country, as would be the case if the importing country unilaterally
imposed equivalent restraints on imports. Also called a Voluntary restraint agreement.
Français: Restriction d'exportation volontaire
Español: Limitación voluntaria de las exportaciones, LVE

Vostro account:
Within a domestic bank, this is an account held by a foreign bank of which the former is either the holder or in which it
has an interest. Also known as loro account. Opposite: Nostro account.
Français: Compte Vostro
Español: Cuenta vostro

Virgin bond:
See Back bond.
Français: Obligation vierge
Español: Bono garantizado

Virtual bank:
This is a bank which exists only on the Internet. A virtual bank does not have any physical "bricks-and-mortar"
branches.
Français: Banque virtuelle
Español: Banco virtual

W
W.A:
See With average.
Français: W.A
Espa ٌ◌ol: W.A
Warehouse receipt:
A document issued by a warehouse listing the goods deposited in the storage site and signifying ownership of the
listed goods. Warehouse receipts may be Negotiable (to Bearer) or non-negotiable.
Français: Récépissé d'entreposage
Espa ٌ◌ol: Recibo de almacenamiento

Warrant:
(1) A written legal instruction of payment.
(2) A warehouse receipt, which in some countries is considered a security. It can be assigned to transfer title to the
goods.
(3) An attachment to a fixed interest security (for instance, a bond) which gives certain rights to its holder, typically the
right to purchase a given security at some specified future date and at a specified price. Warrants may then be
detached from the bond, to be traded as a separate security whose price reflects the value of the underlying bond.
Warrants are often issued by corporations as "sweeteners", bundled with another class of security to enhance the
latter’s marketability.
Français: Garantie
Espa ٌ◌ol: Warrant

Waybill:
A document used as a receipt for goods. Unlike a Bill of lading it is not a document of title. The term is a synonymous
with liner waybill, ocean waybill or sea waybill.
Français: Lettre de voiture
Espa ٌ◌ol: Carta de porte

Weighted interest cost:

The total cost of a multi-part loan (i.e. a loan extended by different lenders), weighted for the respective amounts lent
and the length of time the funds are on loan.
Français: Coût d'intérêt pondéré
Espa ٌ◌ol: Costo de interés ponderado

Wharfage:
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo and merchandise.
Français: Droits de quai
Espa ٌ◌ol: Muellaje

Whole turnover coverage; Comprehensive coverage; global coverage:

An export credit insurance/guarantee policy which covers against risk of loss due both to commercial and political
causes. Whole turnover policies generally charge a lower premium rate than specific policies as the risks are spread
across a broader range of transactions and frequently across several debtor countries.
Français: Couverture complète du Chiffre d'affaires; Couverture globale tous risques
Espa ٌ◌ol: Cobertura del rendimiento total, cobertura global, cobertura global
With average:
A term used in marine insurance indicating that a shipment is covered in a situation of partial damage, whenever the
damage exceeds a certain percentage (3% for example). If, however, the ship is involved in a major catastrophe, such
as a collision, fire or stranding, the minimum percentage requirement is waived and the insurance company pays the
totality of the damage.
Français: Avec avarie
Espa ٌ◌ol: (seguro) Con aver‫ي‬a

Withholding taxes:
Taxes levied at source by a country on income to be paid abroad. Typically this applies to interest and Dividends
remitted to the home country of the firm operating abroad.
Français: Impôts anticipés
Espa ٌ◌ol: Impuesto retenido en la fuente, impuesto en origen, impuesto de retenci َ◌n en la fuente

Without recourse:
A clause in a contract whereby the lender, in the event of non-payment, has no right to seek payment or seize assets
from anyone other than the party specified in the debt contract.
Français: Sans recours
Espa ٌ◌ol: Sin recurso

Without reserve:
A term indicating that the shipper's agent or foreign representative is empowered to make definitive decisions and
adjustments without referring to the individual or company he is representing.
Français: Sans réserve
Espa ٌ◌ol: Sin reserva

Working capital:
The difference between a company’s current assets and current liabilities (excluding short-term debt). It is also known
as net current assets.
Français: Fonds de roulement
Espa ٌ◌ol: Capital de explotaci َ◌n, capital circulante, fondo de operaciones, capital de operaciones (circulante)

Working capital credit:

A loan granted to temporarily strengthen the Working capital of a borrower, for example in the form of Seasonal loans
or Bridging financing.
Français: Crédit destiné au fonds de roulement
Espa ٌ◌ol: Crédito de capital circulante
Working capital guarantee:
A guarantee extended to exporters, designed to encourage lenders to extend them working capital loans to finance
various export-related production and marketing activities. Lack of working capital is one of the biggest barriers for
small and medium-sized exporting enterprises.
Français: Garantie de fonds de roulement
Espa ٌ◌ol: Garant‫ي‬a de capital circulante

World Bank Group:

An integrated group of international institutions which provides financial and technical assistance to developing
countries. The group includes the International Bank for Reconstruction and Development, the International
Development Association and the International Finance Corporation.
Français: Groupe de la Banque Mondiale
Espa ٌ◌ol: Grupo del Banco Mundial

World Trade Organization (WTO):

Successor of GATT's the WTO was established on the 1 January 1995 as the legal and institutional foundation of the
multilateral trading system. The main function of WTO is to act as a forum for multilateral trade negotiations, to seek to
resolve trade disputes, to oversee national trade policies and promote fair competition. It is the platform on which
global trade relations among countries evolve through collective debate, negotiation and adjudication.
Français: Organisation mondiale du Commerce (OMC)
Espa ٌ◌ol: Organizaci َ◌n Mundial del Comercio (OMC)

Wrap-around loan:
A long-term loan structured around a short-term loan in such a way as to postpone repayments of the principal (and
sometimes the interest) on the long-term loan until the short-term loan is repaid.
Français: Prêt "structuré autour"
Espa ٌ◌ol: Préstamo que incorpora un préstamo existente

Write-down:
A specific case of write-off. In general, this is the decrease in the book value of an asset if this is overstated compared
with the current market value. Banks may also write down a loan (i.e. reduce its value on their books) when they think
it might not be repaid in full.
Français: Amortissement partiel
Espa ٌ◌ol: Reducir el valor contable, amortizar parcialmente

Write-off:
A term signifying how banks deal with debts of which there is no hope of recovery. When a borrower is bankrupt, his
bank writes the loans off its balance sheet by reducing its assets by the value of the loan. This means the bank has to
make an equal and opposite reduction in the value of its liabilities.
Français: Amortissement
Espa ٌ◌ol: Pasar a pérdidas y ganancias
 WTO:
see World Trade Organization.
Français: OMC
Espa ٌ◌ol: WTO

Y
Yankee bond:
A US$ denominated bond issued on the United States capital market by a non-American borrower.
Français: Obligation américaine
Espa ٌ◌ol: Bono yanqui

Yankee CD:
A Certificate of Deposit issued on the US capital market by a branch of a foreign bank.
Français: CD américain
Espa ٌ◌ol: Certificado de dep َ◌sito yanqui

Yen-Yankees:
Yen bonds issued on the US market.
Français: Américaines en yen
Espa ٌ◌ol: Yenes yanquis

Yield:
A term used to refer to the annual return (income) produced by an investment, expressed as a percentage. For
investment in stock it is calculated from the distributed dividends, for bonds or other interest bearing securities it
corresponds to the effective rate of interest paid.
(1) Current Yield: The ratio of the coupon (interest) to the market price of a security. It is expressed as a percentage
and neither the maturity nor the number of interest payments made are taken in consideration.
(2) Direct Yield: The discounted yield based on the total life of the asset at simple interest.
(3) Effective Yield: This is calculated on an annual, bi-annual or quarterly compounded interest basis over the period of
the actual investment.
(4) Yield to Maturity: The percentage rate of return paid on a bond, note or other fixed income security which is
purchased and held up to its date of maturity. This is calculated on the basis of the coupon rate, the length of time to
maturity and the bond’s market price. It is assumed that the coupon interest paid over the life of the bond will be
reinvested at the same rate.
Français: Rendement
Espa ٌ◌ol: Yield
Z
Zero bonds; zero-coupon bonds:
A Bond on which no periodic interest (coupons) is paid during its life, and where both the principal and the interest are
paid at the bond’s maturity date. The bond is sold at a discount and its maturity value equals the par value. Its yield
interest rate is determined by the rise in the bond’s value over time. This kind of instrument is widespread in the United
States and on the Euromarket.
Français: Obligations à coupon zéro (à taux d’intérêt nul)
Espa ٌ◌ol: Bono de cup َ◌n cero

Zero-coupon convertible:
A Zero coupon bond with the option of conversion into common stock or other security.
Français: Convertible à coupon zéro (à taux d’intérêt nul)
Espa ٌ◌ol: Bono convertible de cup َ◌n cero

Zero-coupon swap:
A swap of an interest-bearing coupon security in exchange for a zero-coupon security.
Français: Swap à coupon zéro (à taux d’intérêt nul)
Espa ٌ◌ol: Swap de cup َ◌n cero