glossary on trade financing terms a b c

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

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: 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 fiscalyear, 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: currentassets 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

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

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 startsthe 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

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

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 cỏt

Espađol: 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

Espađol: 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

Espađol: 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

Espađol: 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

Espađol: Al costado

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

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 theprice 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 ofthe 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

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

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-Guineaand 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

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 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 inhis 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 aresubsequently 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 timeperiod, 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

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 debititems.

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 importsthe 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’ sidedetails 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 tomake them comparable with equivalent coupon securities

Français: Taux d'escompte bancaire

Español: Tasa de descuento bancario, tasa oficial de descuento

Bank draft:

An international transfer of funds through an instrument very similar to a cheque

Français: Transfert bancaire

Español: Giro bancario

Bank for International Settlements (BIS):

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

Español: Banco de Pagos Internacionales, BPI

Bank guarantee:

A guarantee, issued by the bank of the foreign purchaser, to pay the seller/exporter up to an agreed percentage of the value of the goods shipped in case of default by the purchaser See also Letter of credit

Français: Garantie bancaire

Español: Garantía bancaria, fianza bancaria, aval bancario

Bank-issued medium-term note:

A medium-term certificate of indebtedness, issued by a bank on demand, with maturities ranging between 2 to 8 years

Français: Papier bancaire à moyen terme

Español: Pagaré a mediano-plazo emitido por el banco

Bank notes:

Promissory notes issued by the Central Bank, payable to the bearer on demand.

Français: Papiers bancaires

Español: Billete bancario

Bank release:

A negotiable time draft drawn on and accepted by a bank, which adds its credit and standing to that

of the importer

Français: Traite à terme

Español: Descargo bancario

Banker's Bank:

A bank established by consent by independent and unaffiliated banks as a clearing house for financialtransactions

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

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

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

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 atany time is the creditor.

Français: Cedule hypothécaire au porteur

Español: Pagaré de hipoteca al portador

Español: Beggar-my-neighbour policy

Below par:

A share or a bond whose market value is below its nominal value or face value A bond will be rated below par when the market interest rates are higher than at the time the bond was issued This may also happen if investors are sceptical about the creditworthiness or future prospects of the company

or government which has issued the bond Opposite: Above par

Français: Au dessous du pair

Español: Por debajo de la par, por debajo de su valor nominal, por debajo de la paridad

Beneficiary:

The person in whose favour a letter of credit, an insurance policy or any other payment instrument is issued

Français: Bénéficiaire

Español: Beneficiario

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

An association founded in 1934, gathering over 40 export credit agencies from developing and industrialised countries The Union works for sound principles in the export credit insurance

business, through the exchange of information, constant consultation and close co-operation between its members The agencies participating in the Berne Union do so as insurers and not as representatives of their respective governments

Français: Union de Berne (L’Union Internationale des assureurs de Crédit et d’Investissement)Español: Unión de Berna (Unión Internacional de Aseguradores de Crédito e Inversiones)

Beta:

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

Français: Beta

Español: Beta

Bid; Buying price:

The price or the terms on which a person is willing to buy (e.g securities, commodities, foreign exchange etc.) Opposite: Asked price, Offer See also Tender

Français: Cours acheteur

Español: Cotización de compra, precio de compra, precio de oferta

Bid Bond:

A guarantee by a party (usually a bank) on the order of the seller, to pay a part of the bid

price (usually 5-10%) as compensation to the buyer should the seller, having accepted the bid by the buyer, be unwilling or unable to fulfil the tender terms and undertake the corresponding delivery or performance contract Bid bonds are frequently used in export financing See also Guarantee bonds.Français: Caution de soumission

Español: Fianza de licitación, caución de licitación, aval de oferta

Bid bond coverage:

An insurance or guarantee which protects the supplier or issuing bank from the unjustified or capricious calling of the bid bond

Français: Garantie de couverture

Español: Cobertura de la fianza de licitación

Bid rate:

The lower range of interest rate quotations, i.e the interest rate a bank is prepared to pay for deposits or to acquire securities

Français: Taux demandé

Español: Tipo comprador

Bilateral Agreements:

Agreements reached bilaterally between a debtor country and each of the creditor countries

participating in a Paris Club rescheduling The agreements establish the legal basis of the Debt rescheduling, as set forth in the Agreed Minute, specify the interest rate on amounts deferred or rescheduled, etc

Français: Accords bilatéraux

Español: Acuerdos bilaterales

Bilateral deadline:

The date by which all of the Bilateral agreements must be concluded The period for concluding bilateral agreements is usually around six months from the date of the Agreed Minute.

Français: Date limite bilatérale

Español: Fecha límite bilateral, plazo máximo bilateral

Bilateral investment treaty (BIT):

A bilateral treaty meant to ensure national or most-favoured-nation treatment for foreign

investments deriving from the partner country BITs ensure the right to make investment-related transfers and assign top managers in the foreign country without regard to their nationality They also guarantee that expropriation takes place only in accordance with accepted international rules, and access to impartial and binding international arbitration for the settlement of disputes

Français: Traité d’investissement bilatéral (TIB)

Español: Tratado bilateral sobre inversiones

Bill for collection:

A bill of exchange presented to a bank for collection (and not for discounting) On collection the countervalue of the bill is credited to the account of the client

Français: Effet à l’encaissement

Español: Letra por cobrar

Bill guarantee:

A commitment, generally by signature of the document, to honour a bill of exchange if the specified signatories fail to do so

Français: Garantie d’un effet

Español: Garantía de la letra

Bill of Exchange (Draft):

An instrument of payment frequently used in international business It is an unconditional written order signed by the exporter and addressed to the importer to pay, on demand or at a specified future date, a stipulated monetary sum to the exporter See also Commercial paper, Draft, Letter of credit.

Français: Lettre de change (Traite)

Español: Letra de cambio, giro

Bill of Lading (B/L):

A document setting out the terms of the contract between the exporter of the goods and the carrier, under which the freight is to be transported from the port of shipment to that of destination The B/Lserves 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

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 marketstypically 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 oflong-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: 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

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 exchangemarkets 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

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