glossary on trade financing terms o p

Français: Obligation d’accorder une couverture additionnelle Español: Obligación de proporcionar cobertura adicional Ocean Bill of Lading: A bill of lading B/L signed by the ocean carrie

OAU (Organization of African Unity):

An organization of African nations, primarily with political goals.Français: OAU

Español: OAU

Obligation to provide additional cover:

An obligation by the borrower to supply additional collateral if the value of the objects pledged as security declines

Français: Obligation d’accorder une couverture additionnelle

Español: Obligación de proporcionar cobertura adicional

Ocean Bill of Lading:

A bill of lading (B/L) signed by the ocean carrier indicating that the exporter has consigned a shipment to the carrier for transportation

to a specific foreign market It provides written evidence, and a receipt for the conveyance and delivery of merchandise Unlike

an Inland B/L, the ocean B/L also serves as a collection document If

it is a Straight B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity If a Negotiable B/L is used, the buyer must first pay for the goods, then post a bond or meet other conditions agreed by the seller The Ocean B/L may also

be used as an instrument of ownership which can be bought, sold or traded while the goods are in transit For this purpose, it must be a Negotiable Order Bill of Lading See also bill of lading , On Board Bill

of lading, Clean Bill of Lading Compare with Air Waybill, Inland Bill

of Lading, Through Bill of Lading

Français: Connaissement maritime

Español: Conocimiento de embarque marítimo, conocimiento de embarque a la orden

Ocean Marine Insurance Policy:

A policy to cover the insured from losses arising from unforeseen circumstances or damage to merchandise shipped The basic policy provides coverage from transportation perils but may be amended tocover additional hazards Other types of marine insurance policies include:

(1) Open (insurance) Policy: an insurance automatically applying to all of the exporter’s shipments during a specified period of time, rather than just to one shipment The insured agrees to report the shipments to the insurer and pay the corresponding premium.

(2) Special Marine Policy: sometimes known as marine insurance certificate, this is a policy covering a specific shipment, most

frequently used to provide evidence of insurance

Français: Police d'assurance maritime

Español: Póliza de seguro marítimo oceánico

OECD (Organization for Economic Cooperation and

Development):

A multilateral organization of industrial and semi-industrialized countries founded in 1960 and based in Paris, France Its aim is "to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries while

maintaining financial stability and thus contribute to the world economy" It is essentially a forum for discussion of common

economic and social issues, and assists member states in formulatingtheir economic policies See also Consensus

Français: Organisation de Coopération et de Développement

observers Besides co-ordinating export credit terms, the group also serves as a forum for exchanging information on debtor country situations and on Export credit agencies' practices

Français: Crédit à l’Export et Groupe des Garanties de Crédit de l’OCDE, Comité du Commerce de l’OCDE

Español: OECD Export Credit and Credit Guarantees Group, OECD Trade Committee

(2) In credit insurance, the term indicates the amounts for which

an export credit agencies is committed to provide cover if the

exporter succeeds in obtaining a contract It usually refers to

medium-term business, given that most agencies do not make offers for normal short-term business

Français: Offres/Offres

Español: Oferta

Official development assistance (ODA):

The financial resources granted on concessional terms to developing countries and multilateral development institutions for the

pursuance of economic development objectives They are provided

by government agencies and have a grant element of at least 25%.Français: Assistance de développement officielle

Español: Asistencia oficial para el desarrollo (AOD)

Official reserves:

The holdings of gold, foreign currency and Special Drawing Rights (SDR) of a country’s Central Bank

Français: Réserves officielles

Español: Reservas oficiales

Officially supported export credits:

Credits extended to finance the export of goods and services for which the official export credit agencies of the creditor country provides guarantees, insurance or direct financing

Under OECD Consensus rules on export credits of two years or

longer, up to 85% of the export contract value may be financed The financing element, as opposed to the guarantee/insurance element, may take different forms It may either be extended directly by the exporter (suppliers' credit), or by a commercial bank in the form of a financial trade-related credit provided to the supplier (supplier's credit again) or to the importer (buyers' credit) It can also be

extended directly by an official institution within the country of export, usually in the form of medium-term finance for the

promotion of exports of capital equipment or for the implementation

of large-scale, medium-term projects

Français: Crédits à l'export officiellement soutenus

Español: Créditos de exportación concedidos con apoyo oficial

Français: Contrats de compensation

Español: Acuerdo de compensación

A foreign bank involved in domestic money

market, Eurocurrency and foreign exchange financial transactions It

is not allowed to accept domestic deposits but its activities are unrestricted by domestic authorities Offshore banks are located in major financial centres characterised by very liberal reserve, tax and capital market requirements

Français: Offshore Bank

Español: Banco extraterritorial

Off-take:

The output of a given project

Français: Ecoulement de marchandises

Español: Producto

Off-take agreement:

An agreement between the project company and the purchaser taker) of the project’s final output, specifying the terms and

(off-conditions of the purchase, including price, quantity and (off-conditions

of tenor of the agreement to purchase the off-take

Français: Contrat d’écoulement

Español: Acuerdo de prelevo

On board bill of lading:

A bill of lading certifying that the goods accepted for transportation have actually been shipped on board On Board B/L are usually referred to in letter of credit transactions for the shipper to obtain payment from the bank

Français: On board bill of lading

Español: Conocimiento de embarque a bordo

On demand; On sight:

A notation on a claim document implying that the specified amount becomes due and payable immediately upon presentation of the debtcertificate or payment order by the creditor to the debtor

Français: A la demande, à vue

Español: A requerimiento, a la vista

financial institution An open account transaction requires the seller

to have absolute trust in the integrity of the buyer, since the seller assumes all the risks of the transaction, as opposed to cash in

advance Open account is thus common in markets characterized by long-standing commercial relationships between the two parties.Français: Compte ouvert

Español: Cuenta abierta

Open contract:

A contract in which some of the key elements, such as quantity

and/or price will be determined at a later stage under specific sub contracts

Français: Contrat ouvert

Español: Contrato pendiente

Open-market operations:

A Central Bank’s dealings in the domestic money market or securitiesmarket, aimed at adjusting and controlling the credits and money supply in the economy

Français: Opérations sur le marché public, opérations d'"open

market"

Español: Transacciones de mercado libre

Open (insurance) Policy:

See Ocean Marine Insurance Policy

Français: Police d'assurance ouverte

Español: Póliza flotante, póliza abierta

Open Tender:

An invitation to bid, open to all suppliers willing to submit offers See Restricted tender

Français: Soumission ouverte

Español: Licitación pública

Operating risk:

The inherent risk of a firm, also known as business risk

Français: Risque d'exploitation

Español: Riesgo de explotación

Operational risk:

Operational risk arises from the potential for loss due to significant deficiencies in system reliability or integrity Banks may be subject toexternal or internal attacks on their systems or products, as well as customer misuse and inadequately designed or

implemented electronic banking and electronic money systems

Français: Risque opérationnel

Espađol: Riesgo operacional

Operator:

Within a project, the party responsible for the project’s operation and maintenance

Français: Opérateur

Espađol: Operador, empresario

Opportunity cost of capital:

The expected return which is foregone when funds are invested in a project rather than in financial securities with a comparable level of risk

Français: Cỏt d'opportunité du capital

Espađol: Costo de oportunidad del capital, costo de opciĩn del capital

Option:

A derivative contract which gives the buyer the right, though not the obligation, to buy or sell a specific quantity of the underlying asset (e.g security, commodity, currency, etc) at a stated strike price,

within a specific period or on a specified date In return for this right,the buyer of the option will have to pay a premium Options are issued by investors, not by companies Companies may buy them as ameans of cover against risk (for instance, exchange rate fluctuations).See also Seller of an Option, Call option, Put option

Français: Option

Espađol: Opciĩn

Order instrument:

A paper which may be transferred by endorsement (i.e

a negotiable instrument) Legal order instruments (such as

cheques, drafts and bills of exchange) are always order instruments, even when they do not bear a "to the order to" notation On the other hand, instruments such as Bills of lading and bill-like papers become negotiable only after such a notation is added

Français: Instrument d'ordre

Español: Instrumento a la orden

Ordinary share (UK); common stock (USA):

A regular share, without any special features such as those

characterising preference shares/preferred stocks

Français: Action ordinaire

Español: Ordinary share (UK)

Organization for Economic Cooperation and Development:

Français: Organisation de l’Unité Africaine

Español: Organización de la Unidad Africana (OUA)

Organization of Petroleum Exporting Countries (OPEC):

A cartel agreement to co-ordinate production and prices among major world oil exporting countries

Français: Organisation des Pays Producteurs de Pétrole (OPEC)Español: Organización de Países Exportadores de Petróleo (OPEP)

Outsourcing:

When a domestic company uses foreign suppliers for components or finished products

Français: Approvisionnement extérieur

Español: Contratación de terceros

A technique whereby a bank’s client is allowed to overdraw his account, i.e withdraw funds exceeding his credit balance The bank gives its client a general credit facility, by which the client, through anoverdraft, extends himself a short-term loan, without needing a formal loan agreement The advantage for the client is that he will pay for only as much as he has borrowed

Français: Tirer à découvert

Español: Girar en descubierto

Overdue bill; dishonoured bill:

A bill of exchange which was not paid at maturity

Français: Effet dû, effet exigible, effet non honoré, effet en souffrance Español: Letra vencida

Overseas investment finance:

Designed to cover the requirements of local firms establishing ventures abroad, to enable them to finance their contribution to the equity of the joint-venture

joint-Français: Financement de l'investissement d'outre-mer

Español: Financiación de inversiones en el extranjero

Over-the-counter market (OTC market):

A decentralised exchange market in which dealers from different geographical areas are linked by telephone and computer (as

opposed to an official stock market where dealings are conducted on

a floor) Dealings in the OTC market involve securities not listed on the official stock exchanges, typically securities of small or new

companies which cannot afford the expense of being traded on a major market The NASDAQ market is an OTC market for U.S stocks.Français: Hors coté

Español: Mercado extrabursátil

P

Packing credit:

A loan granted against the presentation of a warehouse

receipt, forwarder's receipt or any other document proving that the goods are no longer in the seller's possession

Français: Crédit d’emballage

Español: Crédito de empaque

Packing list:

A list describing the number and kind of the shipped items, as well asother information needed for transportation purposes

Français: Liste d'emballage

Español: Lista de especificación de embalajes, nota de embarque, lista de bultos

Paid-in surplus:

The surplus (excess) paid by investors in the purchase of a

company's shares When shares are issued at above par, the capital paid in is divided into share capital (at par) and paid-in surplus (the excess above par) Also called Share premium

Français: Payé en-sus

Español: Prima de emisión (de acciones), prima pagada por venta de acciones

Paper:

A general term indicating commercial paper such as bills of

exchange or promissory notes It may also be used to refer to any kind of security

Français: Papier

Español: Efectos, títulos, valores

(3) Currency at par: A currency whose spot and forward prices are the same.

Français: Par of exchange

Español: Paridad del cambio

Parallel loan:

See Back-to-back loan

Français: Prêt parallèle

Español: Parallel loan

Parallel Market:

A secondary currency market where currency rates are different from those applied in the official market The term may sometimes also apply to the black market

Français: Marché parallèle

Español: Mercado paralelo

Paris Club:

A term designating the international meetings convened to negotiate the rescheduling of the "official debt" (i.e public sector debt) of

heavily indebted developing countries Negotiations take place between creditor and debtor countries to consider opportunities for rescheduling or consolidating the debt-service payments on loans extended, insured or guaranteed by the creditor countries'

governments or official agencies The broad terms of the agreed rescheduling are then set forth in an Agreed Minute, which the representatives will submit to their respective governments The Paris Club has neither a fixed membership nor an institutional structure and is open to all official creditors who accept its practices and procedures Comparable meetings occasionally take place in London (London Club) and in New York for countries which wish to renegotiate repayment terms for their debts to private banks These are sometimes called "creditor clubs"

Français: Club de Paris

Español: Club de París

Paris Inter-Bank Offered Rate:

See PIBOR

Français: Taux interbancaire offert à Paris

Español: Paris Inter-Bank Offered Rate

Parity: Currency parity:

The official ratio of a currency in terms of another Dollar parity, for example, is the value ratio of a currency against US dollars

Français: Parité: Parité monétaire

Español: Paridad cambiaria

Partial acceptance:

An acceptance which differs from the terms stated in the bill, e.g an acceptance calling only for partial payment of the amount or at a different time than that originally agreed upon

Français: Acceptation partielle

Español: Aceptación parcial

Payable in advance:

An expression used in connection with interest payments, indicating that the interest is payable at the beginning of the reference interest period (e.g year, six months, etc.) Opposite: Payable in arrears.

Français: Payable à l'avance

Español: Pagadero por anticipado

Payable in arrears:

A term used in connection with interest payments, showing that the interest is payable at the end of the reference interest period

Opposite: Payable in advance

Français: Payable à termes échus

Español: Pagadero a plazo vencido

Pay-back method:

A technique for project appraisal, based on the length of time it takes

to recover the initial cost required to undertake a project, without regard to the time value (i.e opportunity cost) of the money

Français: Méthode de remboursement

Español: Método de reembolso, método de amortización

Payee:

The person or company to whom a draft, bill, cheque or other

negotiable instrument is made payable

Français: Bénéficiaire

Español: Beneficiario (del pago)

P/E ratio:

Price/earnings ratio

Français: Rapport, ratio: Prix/Bénéfice

Español: Relación precio-beneficio (por acción) (PB), relación entre cotización y precio (PER)

Peg: