glossary on trade finacing terms d

Français: Coefficient, Ratio d'endettement Español: Coeficiente de endeudamiento Debt refinancing: The procedure by which overdue payments or future debt-service obligations on an Offici

Français: Date d'échéance de la traite

Español: Giro fechado

Day-to-day money:

See Call money

Français: Argent au jour le jour

Español: Day-to-day money

company makes a profit or not and, in case of Liquidation, debenture holders have priority over ordinary bond holders on the company's remaining assets Debentures can be bought and sold on a stock Exchange.

Français: Obligation, reconnaissance de dette

Español: Obligación

Debt-equity ratio:

The ratio of a company's long-term liabilities (debts) to its Equity (i.e shareholders' funds) The higher the ratio, the greater the financial Leverage/Gearing of the firm

Français: Coefficient fonds propres/endettement, Ratio fonds propres/endettement

Español: Relación entre deuda y recursos propios, razón entre deuda y capital, relación de

obligaciones a patrimonio

Debt ratio:

The ratio of a company's long-term liabilities (debts) to its total long-term capital employed, i.e debt plus Equity See also Gearing

Français: Coefficient, Ratio d'endettement

Español: Coeficiente de endeudamiento

Debt refinancing:

The procedure by which overdue payments or future debt-service obligations on an Officially

supported export credit are repaid by setting up a new refinancing loan Such a loan may be

extended by an Export credit agency, a governmental institution or a commercial bank In the latter case it will carry the guarantee of the export credit agency

Français: Refinancement de la dette

Español: Refinanciación de la(s) deuda(s)

Debt rescheduling:

In general, the procedure of readjustment of the terms applying to the existing liabilities of a

company or a country, such as a reduction of the interest rates applied and/or an extension of the time required for payment

(1) In an Export credit agency, the term refers to the procedure by which overdue payments or futuredebt-service obligations on a existing officially supported export credit are converted into a claim by the export credit agency on the debtor country carrying a revised stream of payments

(2) In the case of heavily indebted developing countries, it indicates the agreement between debtor and creditor countries to modify the terms of the loan when the borrowing country experiences serious debt-servicing problems Rescheduling may take the form of an extension of the debt

maturity date, delayed loan principal payments, reduction of the interest rate, transformation of short-term credits into medium- or long-term lending, etc See also London Club and Paris Club.Français: Ré-échelonnement de la dette

Español: Reescalonamiento (del servicio) de la deuda, renegociación de los vencimientos de la deuda

Debt restructuring:

A general term covering both the rescheduling or refinancing of debt-service payments in arrears and/or of future debt-service payments, in response to external payment difficulties

Français: Restructuration de la dette

Español: Reestructura de deuda, renegociación de los pagos (del servicio) de la deuda

Debt-Service Ratio:

The ratio of a country's repayments on its foreign debt to its hard-currency export earnings This ratio

is calculated by dividing the sum of the debt repayments (principal and interest) during a reference year by the country's exports for that year The debt/service ratio is one of the criteria used to measure a country's creditworthiness

Français: Coefficient : dette-service de la dette

Español: Proporción del servicio a la deuda, coeficiente del servicio a la deuda

Debt Servicing:

The payment of current interest on borrowed funds, together with the repayment of

the principal amount when due

Français: Service de la dette

Español: Servicio de la deuda

Deep discount bonds:

Created in the 1970s and used by companies seeking to maximize their immediate Cash flow and investors keen to avoid taxation These are bonds which carry little or no interest but are sold by the issuing company at a price well below their face value

Français: Obligations très largement escomptées

Español: Bono de descuento intensivo, pagaré de descuento intensivo

Français: Intérêt de défaut

Español: Intereses por mora

Defeasance:

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

Français: Defeasance

Español: Anulación, revocación

Deferred call:

A clause which prohibits the issuing company from calling the Bond before a certain date

Français: Appels différé

Español: Pago diferido

Deferred letters of credit:

A Letter of credit calling for payment at a fixed future date, where the documents do not need to be accompanied by a draf

Français: Lettres de crédit différées

Español: Carta de crédito diferida

Deferred payment credit:

An arrangement under which payments due to the exporter on presentation of the shipping

documents are deferred for an agreed period of time

Français: Paiement de crédit différé

Español: Crédito con pagos diferidos

Deferred stocks:

Shares where payment of the coupon is deferred It also refers to a stock where market appreciation

is expected at a later stage

Français: Actions différées

Español: Acciones diferidas

"exclusive of VAT and/or taxes").

Français: Livré / taxe payée

Español: Entregado derechos pagados, DDP

Delivered at frontier:

The exporter fulfils his obligations by delivering the goods at the border of the country of

destination, but before the "customs border", i.e without undertaking the customs clearance formalities The term usually applies to goods transported by rail or road but may be used also in connection with other modes of transport

Français: Livré à la frontière

Español: Entregada en frontera, DAF

Français: Période de livraison

Español: Plazo de entrega

Demand draft:

A payment order payable upon presentation

Français: Traite à vue

Español: Giro a la vista

Demand line of credit:

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

Español: Línea de crédito a la vista

Demurrage:

The extra time required to load or unload a vessel, as compared with that specified in the contract The term refers only to those situations in which the charterer or shipper, rather than the vessel's operator, is at fault.

Español: Dependencia

Deposit of estimated duties:

In an Antidumping procedure, the term indicates the duties to be collected on imported merchandisefound to be subject to Dumping

Français: Dépôt de taxes estimées

Español: Consignación de aranceles estimados

(2) In accounting, the amount allocated each period to Amortize the book value of fixed assets.(3) On the foreign exchange markets, the decrease in the market value of a currency, where this decrease has taken place without any intervention by the country's monetary authorities Compare with Devaluation.

The official decision by a country’s monetary authorities to reduce the value of the domestic

currency in relation to foreign currencies, i.e to reduce the foreign currency equivalent of the domestic currency e.g if the U.S dollar is devalued in relation to the French franc, one dollar will

"buy" fewer francs than before Opposite: Revaluation Compare with Depreciation

Français: Banque de développement

Español: Banco de desarrollo

Development carve-out:

A portion of the product payment estimated to cover the development costs (intangible expenses) of

an oil or gas well or mine

Français: Développement "carve-out

Español: Desarrollo indirecto

Development carve-out loan:

A loan secured by a Development carve-out

Français: Prêt de développement "carve-out

Español: Préstamos para dsarrollos indirectos

Development Finance Institutions (DFIs):

DFIs are set up to support the undertaking of industrial and development projects through the extension of long-term loans on more favourable conditions than those offered by commercial banks

DFIs are usually also willing to take greater risks than commercial banks They include Development banks and industrial finance corporations.

Français: Institutions pour le développement financier

Espađol: Instituciĩn de financiaciĩn del desarrollo, banco de fomento

Direct costs:

The term refers to costs which can be directly related to the production of particular units or lines of products They include the wages of the personnel and the cost of inputs used in the manufacture of such products

Français: Cỏts directs

Espađol: Costos directos, costo neto

Direct Credit:

A financing arrangement (buyer or supplier) provided directly by an ECA to the importer or exporter

as borrower

Français: Crédit direct

Espađol: Crédito directo

Direct lease:

A lease in which the lessor purchases new equipment from the manufacturer and leases it to the lessee

Français: Bail direct

Espađol: Contrato de arrendamiento directo

Direct payment:

Payments owed by the buyer which must be settled in cash during the contractual period, not being eligible for financing under a buyers or suppliers' credit

Français: Paiement direct

Español: Pago directo

Direct quote:

In foreign exchange operations, the number of units of the domestic currency required to buy one unit of a foreign currency Compare with Indirect quote See also Quoted currency

Français: Cotation directe

Español: Cotización directa

Direct yield:

See Yield

Français: Rendement direct

Español: Rendimiento directo

Dirty float:

A system of floating exchange rates where the domestic monetary authorities occasionally intervene

to manage and control the exchange rate by buying or selling domestic currency against

foreign Reserve currencies In a Clean float, no intervention is used

Français: Fluctuations contrôlée

Español: Flotación sucia, flotación impura, flotación manipulada

Disagio:

In the securities market, a situation where the market price of a security is lower than its nominal

or par value In foreign exchange operations, the discount charged for exchanging a depreciated foreign currency or for exchanging abraded or used coins Opposite: Agio

Français: Disagio

Español: Desagio

(1) In commercial trade, a rebate in the selling price of goods or services, usually made by deducting

a certain percentage from the quoted price

(2) In finance, the deduction from the face value of Commercial paper such as a Bill of

exchange or acceptance, in exchange for the option of receiving the relative cash payment before thematurity of the paper By purchasing at a discount, the buyer of the commercial paper is

compensated for the loss of interest on the funds up to the paper’s maturity

(3) When referring to the selling price of a bond or other security, this indicates a market price below its par value

(4) In accounting, the calculation of the present value of a stream of future Cash flows It is the opposite of Compounding

(5) In foreign exchange trading, a foreign currency sells at a discount on the forward market when the forward rate is lower than the spot rate (assuming that the domestic currency is quoted on a direct basis), i.e that it is cheaper to buy the foreign currency forward rather than spot

Français: Escompte

Español: Descuento

Discount credit:

A credit by a bank for the provision of funds when the client presents a Bill of exchange or

similar Commercial paper for discounting

Français: Crédit escompte

Español: Línea de descuento

Discount rate:

(1) The interest rate at which a bank or other lender agrees to make advance payments to the holder

of a bill of Exchange or other Commercial paper, i.e the deduction from its face value practised by the bank It is thus a charge on the person or company seeking to discount his bills, and depends on the time lef until the maturity of the instrument, the liquidity of the financial markets, etc

(2) The interest rate at which a country’s Central Bank lends to commercial banks, when these are temporarily short of funds Commercial banks need to pledge government and other first-class debt instruments as collateral to borrow from their Central Bank Such borrowings are of a short-term nature as they are meant to meet the short-term liquidity needs of commercial banks

Français: Taux d'escompte

Español: Tipo de descuento

Discount window:

A facility offered by a county’s Central Bank by which commercial banks may borrow short-term (at the Discount rate), for instance in order to adjust to sudden changes in their assets and liabilities portfolio

Français: Facilité d'escompte

Español: Servicio de redescuento

Discounted cash flow:

The present value of future Cash flows, taking into account the timing of the future stream of payments Take an example of an anticipated cash flow of £100 Its present value is lower, as it could

be invested and earn interest If a current investment of £92 is worth £100 by the end of the year, the discounted cash flow value of the anticipated £100 would be £92 Discounted cash flows are used when comparing alternative investment options, entailing different payment and revenue time structures See also Capitalized value

Français: Flux de trésorerie escomptés

Español: Flujo de efectivo actualizado

Dishonour:

Refusal on the part of the drawee to accept a draf or to pay it when due.

Français: Ne pas honorer

Español: Falta de pago, falta de aceptación

Disintermediation:

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

Français: Prime de rapidité

Español: Prima de celeridad, prima por pronta carga y descarga

Disposable income:

Income (cash) afer tax

Français: Revenu disponible

Español: Ingresos disponibles

Distributor:

An Agent who sells directly on behalf of and according to the instructions of the supplier and maintains an inventory of the latter's products

Français: Dumping de diversion

Español: Dumping indirecto

Français: Dividende

Español: Dividendo

Dividend cover:

The ratio of profits distributed as dividends to total profits It gives an indication of the company’s dividend policy and on the likely distribution of future dividend payments

Français: Couverture du dividende

Español: Cobertura de dividendos

Dividend yield:

This indicates the expected return on the purchase a particular share It is calculated by dividing the last total annual dividend payment per share by the share’s market price

Français: Rendement du dividende

Español: Rentabilidad del dividendo

Dock receipt:

A receipt issued by the ocean carrier upon the handing over of the merchandise at the port of embarkation for shipment

Français: Reçu de dock

Español: Recibo provisional de mercancías entregadas sobre muelle

Documentary acceptance credit:

An acceptance credit used for import or export financing, usually secured by an irrevocable

documentary credit issued by the buyer's bank

Français: Crédit d'acceptation documentaire

Español: Crédito documentario de aceptación

Documentary collection: