Glossary on Trade Financing Terms - A
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 withwithout 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 andWith 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 cooperation 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 investmentrelated 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
Español: 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
Español: Call ...
Call Account:
A deposit account, usually interest bearing, from which funds can be withdrawn at call.
Français: Compte courant
Español: 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
Español: 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
Español: 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
Español: 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
Español: Plusvalía
Capital appreciation bonds:
These are usually zero-coupon bonds sold Below par.
Français: Appréciation en capital d’obligations
Español: Bono de plusvalía
Capital budgeting:
The evaluation and selection of a company’s planned capital expenditures.
Français: Budget en capital
Español: 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
Español: Gastos de capital, desembolso de capital, gastos de inversión
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
Español: Exportación 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
Español: 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
Español: 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
Español: Mercado de capitales, mercado del dinero, mercado financiero
Capital mortgage:
A Mortgage to secure a specific credit/transaction.
Français: Hypothèque
Español: 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
Español: Relación entre el capital y los activos
Capital stock (USA):
See Share capital (UK).
Français: Capital de dotation
Español: 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
Español: Relación capital-producto, razón 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
Español: Estructura de capital
Capitalization:
The debt and/or equity mix of a firm's assets.
Français: Capitalisation
Español: Capitalización
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
Español: 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
Español: 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
Español: 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
Español: 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
Español: Mercado Común del Caribe
Carrier:
A freight/transport company operating by air, ocean, road, rail, canal etc. See also inland.
Français: Transporteur
Español: 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
Español: Cártel
Cash accounting:
An accounting method which reports expenditures and revenues when the actual cash
outflow or inflow has occurred.
Français: Comptabilité "cash"
Español: 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
Español: 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"
Español: 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
Español: Flujo de caja, flujo de efectivo, tesorería
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
Español: 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
Español: 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
Español: Pago en efectivo, pago al contado
Cash price:
See Spot price.
Français: Prix cash
Español: 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
Español: 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
Español: Países de categría I o II
CD:
Abbreviation for Certificate of Deposit.
Français: CD
Español: CD
Cedel (Centrale de Livraison de Valeurs Mobilières):
A Luxembourg-based, computerized clearing house for Eurobonds.
Français: Cedel
Español: Cedel
Centrally Planned Economy:
See Command economy.
Français: Economie planifiée et centralisée
Español: Economía de planificación centralizada, economía 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
Español: 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)
Español: Certificado de depósito
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
Español: Certificado de inspección
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
Español: Certificado de fabricación
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
Español: Certificado de origen
C.F.R:
Abbreviation of Cost and Freight.
Français: C.F.R.
Español: 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
Español: Gastos a cargo del librado
Chicago Board of Trade:
The first Futures market in the world.
Français: Chicago Board of Trade
Español: Consejo de Comercio de Chicago
Chicago Board Options Exchange:
The first Options market in the world.
Français: Chicago Board Options Exchange
Español: Consejo de Cambio de Opciones de Chicago
Chicago Mercantile Exchange:
The second largest Futures market in the world.
Français: Chicago Mercantile Exchange
Español: Consejo de Intercambio Mercantil
C & I:
Abbreviation of Cost and Insurance.
Français: C & I
Español: C & I
C.I.F.:
Abbreviation of Cost, Insurance and Freight.
Français: C.I.F.
Español: C.I.F.
C.I.F. & C.:
Abbreviation of Cost, Insurance, Freight and Commission.
Français: C.I.F. & C.
Español: C.I.F. & C.
C.I.F. & E.:
Abbreviation of Cost, Insurance, Freight, and (Currency) Exchange.
Français: C.I.F. & E.
Español: C.I.F. & E.
CIP: Carriage and Insurance Paid to
See Carriage Paid To.
Français: Transport et assurance payés à
Español: 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
Español: Carta de crédito circular
CIRCUS:
A combined interest rate and currency swap.
Français: CIRCUS
Español: Swap de monedas
CIRR:
See Commercial Interest Reference Rate.
Français: CIRR
Español: CIRR
CISG:
See Convention on Contracts for the International Sales of Goods.
Français: CISG
Español: 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
Español: Pago de una indemnización
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
Español: Período 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
Español: Conocimiento de embarque con cláusulas 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
Español: 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
Español: 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
Español: 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
Español: Flotación limpia
Clearing banks:
The commercial banks participating in a Clearing system.
Français: Banques compensatrices
Español: Banco de compensación
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
Español: Cámara de compensación
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
Español: Sistema de compensación
Clip and strip bonds:
These are bonds whose principal and coupon portions may be split and sold separately.
Français: Obligations à coupon détachable
Español: 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
Español: 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
Español: Cuenta de cierre, cuenta compensadora
Closing documents:
The documents designed to complete a business transaction.
Français: Documents de clôture
Español: Documento de cierre
Club of Paris:
See Paris Club.
Français: Club de Paris
Español: Club of Paris
Club of ten:
See Group of ten.
Français: Club des dix
Español: 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
Español: Cofinanciamiento, cofinanciación
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
Español: Garantía (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
Español: Bono garantizado
Collateral loan (USA); Lombard loan (UK):
Advances made against the pledging of collateral.
Français: Prêt garanti (USA) ; Prêt-Lombard (GB)
Español: Préstamo con garantía 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
Español: Recaudación, cuestación, 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
Español: 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
Español: Economía de planificación centralizada, economía 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
Español: 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
Español: 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
Español: 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
Español: 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
Español: 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 withTransfer risk and Political risk.
Français: Risque commercial
Español: 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
Español: 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
Español: Comisión
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
Español: 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
Español: 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
Español: 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
Español: 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
Español: Comisión de compromiso; comisión 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
Español: Comisión de compromiso, comisión 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
Español: 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
Español: 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
Español: Producto básico, materia prima, mercancía, mercadería, 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
Español: Bono indizado según el precio de un producto básico, 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
Español: Fondo de productos básicos
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
Español: Swap basado en productos básicos
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
Español: Swap de materia prima
Common equity:
The value of the ordinary shares/common stock issued by a firm.
Français: Valeur des actions ordinaires
Español: Capital básico
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
Español: Acciones ordinarias
Compensating balance:
A deposit account which the bank may require its borrowers to put at its disposal.
Français: Solde compensatoire
Español: Saldo compensatorio
Compensation (Buyback):
See Countertrade.
Français: Indemnisation, Dédomagement (Rachat)
Español: Compensacíon
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
Español: Servicio de financiamiento compensatorio
Compensatory Trade:
Any kind of arrangement by which goods and services are bartered.
Français: Commerce compensatoire
Español: Comercio compensatorio
Competitive bidding:
A purchase process whereby the buyer asks potential suppliers to submit competing bids.
Français: Appels d'offres
Español: Licitación pública, concurso público
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
Español: Garantía de terminación
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 aCompletion guarantee.
Français: Risque d'achèvement
Español: Riesgo de terminación
Compound duties:
See duty.
Français: Droits composés
Español: 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
Español: Interés compuesto
Compound value:
The final value of a sum earning Compound interest.
Français: Valeur composée
Español: Valor compuesto
Comprehensive coverage:
See Whole turnover coverage.
Français: Couverture complète tous risques
Español: 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
Español: 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
Español: 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
Español: Confirmación
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
Español: 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
Español: 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
Español: Banco confirmante
Confirming house:
A private independent company whose business is the Confirmation of short- or mediumterm 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
Español: 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
Español: 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
Español: 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
Español: 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
Español: Consignación
Consignor:
The seller or shipper of merchandise.
Français: Consignateur
Español: Expedidor, remitente, cargador
Consolidated debt:
A long-term, funded debt of a public authority (e.g. bond issue). Opposite: Floating debt.
Français: Dette consolidée
Español: 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
Español: Consolidación
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
Español: Banco consorcial
Consortium project:
A project structured by two or more parties as a partnership or Joint venture.
Français: Projet de consortium
Español: Proyecto en consorcio
Construction Loan:
See Contractor loan.
Français: Prêt à la construction
Español: 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
Español: Declaración 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
Español: 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
Español: 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
Español: 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
Español: 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
Español: Contango
Contingent claim:
A claim which can only be made if one or more of the specified outcomes occur.
Français: Réclamation liée conditionnelle
Español: Título 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
Español: Pasivo contingente, obligación 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
Español: Fianza de contratista
Contractor:
Within a project, the company responsible for the engineering, procurement and construction
activities of the project.
Français: Entrepreneur
Español: 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
Español: 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
Español: Convención sobre los Contratos de Compraventa Internacional de Mercaderías,
Convención 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
Español: Conversión
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
Español: Relación de conversión
Convertibility:
The freedom to exchange one currency into another without government restrictions or
controls.
Français: Convertibilité
Español: 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
Español: 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
Español: Bono convertible
Convertible currency:
A currency which can be bought and sold for another currency at will.
Français: Monnaie convertible
Español: 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
Español: 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
Español: 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
Español: Bono empresarial
Corporate finance:
Financial transactions undertaken by a corporation.
Français: Financements de société
Español: Finanzas empresariales
Corporate tax:
A tax on company profits.
Français: Taxe sur les sociétés
Español: 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
Español: 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
Español: 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
Español: 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
Español: 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
Español: 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)
Español: 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
Español: Costo, seguro, flete y comisión
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
Español: 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
Español: 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
Español: Costo de producción
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
Español: 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
Español: 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
Español: Contraindemnización
Counterpurchase:
See Countertrade.
Français: Contre-achat
Español: 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
Español: Comercio de compensación
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
Español: 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
Español: País 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
Español: Riesgo país
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
Español: Categoría de riesgo país
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
Español: Cupón
Coupon Rate:
The stated interest rate payable on a Bond, paid at least once a year.
Français: Taux du coupon
Español: 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
Español: Compromiso de crédito, contrato de préstamo, garantía 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
Español: 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
Español: Valor con moneda de reembolso opcional
CPT:
See Carriage Paid To.
Français: CPT
Español: 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
Español: 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
Español: 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
Español: Comisión de crédito
Credit history:
Past repayment performance.
Français: Historique du crédit
Español: Antecedentes crediticios
Credit line:
See line of credit.
Français: Ligne de crédit
Español: Línea 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
Español: Nota de crédito
Credit rating:
See Rating.
Français: Notation de crédit
Español: Credit rating
Credit risk insurance:
Insurance designed to cover the risks of non-payment of a credit.
Français: Assurance du risque de crédit
Español: 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
Español: Giro de crédito en descubierto
Creditor clubs:
See Paris club, London club.
Français: Clubs créanciers
Español: Club de París, 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
Español: 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
Español: 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
Español: Préstamo entre dos o más 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
Español: 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
Español: 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
Español: 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
Español: Opción de cambio
Currency parity:
See Parity.
Français: Parité monétaire
Español: 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)
Español: 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)
Español: Riesgo cambiario previo al contrato
Current account (external trade):
See Balance of payments.
Français: Compte courant
Español: 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
Español: 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
Español: Crédito en cuenta corriente
Current liability:
Any liability which must be honoured within one year.
Français: Dette courante
Español: 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
Español: 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
Español: 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
Español: 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
Español: 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
Español: Aduana
Customs house broker:
An individual or firm licensed to clear goods at the Customs.
Français: Courtier en douane
Español: 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
Español: Unión 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
Español: Fecha límite