Glossary on Trade Financing Terms - S
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A transaction whereby a person or a company purchases an asset from its owner and then Leases it back to him. The lessee therefore receives the sale price and continues to enjoy the use of the asset against payment of the lease fee.
Français: Vente couplée à un crédit-bail
Español: Venta y retrocesión en arrendamiento
An Agent who distributes, represents, provides sale services or sells goods on behalf of a supplier from the same or another country.
Español: Representante de ventas
The estimated selling price of an asset (such as plant or equipment) once its Book value has been fully Depreciated.
Español: Valor residual
Yen-denominated Bonds issued in Japan by foreign borrowers. Compare with Bulldog bonds and Yankee bonds.
Español: Bono samurai
A yen-denominated Lease subsidized by MITI to finance the purchase of equipment located outside Japan.
Français: Bail Samouraï
Español: Arrendamiento Samurai
A bank whose main business is accepting interest-bearing Savings deposits of varying amounts.
Español: Caja de ahorros
Accounts which pay interest, generally at below-market interest rates. They do not have a specific maturity and may usually be withdrawn upon demand.
Español: Depósito (en caja) de ahorro
(1) A written obligation by the bank, acting as paying agent for a security issue, to deliver the definitive certificates as soon as issued to the subscriber.
(2) A type of Waybill accompanying merchandise shipments.
Español: Certificado provisional, título provisional
Abbreviation for Special Drawing Right.
The duplicate of a draft drawn in original and duplicate.
Español: Duplicado de una letra de cambio
A market where securities are traded after having been issued and distributed on the Primary market. This is the market for "second-hand" trading of financial instruments. Most trading is done on the secondary markets. The New York Stock Exchange and other world stock exchanges, bond markets, etc. are all secondary markets.
Español: Mercado secundario
A creditor who owns debt obligations backed by pledged assets.
Español: Acreedor garantizado
Debt certificates (such as Notes, Equity, loan stocks, Bonds or other debt instruments) which prove the ownership (or rights of ownership) of the same.
Español: Títulos, valores, efectos
(1) The securing of a loan or another debt instrument by the pledge of assets.
(2) The phenomenon whereby corporate borrowers find it cheaper to raise money by issuing negotiable securities on the Capital market, rather than borrowing from the bank.
The lending of securities over a period of time.
Français: Prêt de
Español: Préstamo en valores
A guarantee of payment required by export credit agencies before agreeing to extend cover in certain markets, depending on the legal and administrative system of the borrowing countries. Such a guarantee usually consists of an irrevocable Letter of credit, a confirmed irrevocable letter of credit or a guarantee issued by the local government or Central Bank.
Español: Requisición de garantía
A loan extended to finance the purchase of current assets. The sale of such assets provides the cash to repay the loan.
Español: Préstamo autoamortizable
The seller of an option is committed to deliver/buy the underlying security if the buyer of the option exercises his right on a Call/Put option at the strike price.
Español: Vendedor de una opción
A provision in a contract which allows the seller to vary the quantities to be delivered by a certain percentage. The contract may also provide options on any other contractual clause, for example the delivery schedule.
Français: Option du
Español: Opción del vendedor
This refers to the banks and other financial institutions brought together by a Syndicate manager to sell or market a new issue of securities to the public.
Français: Groupe de
Español: Sindicato de venta, sindicato de colocación
A currency which may be bought or sold only through the Central Bank and at specific fixed exchange rate.
Español: Divisa parcialmente convertible
A tax system whereby each economic unit is taxed when it receives income, e.g. a firm will be taxed on its profits and the firms shareholders will also be taxed on the Dividends paid to them from the firm's profits.
Français: Approche séparée des entités
Español: Enfoque unitario
The specified days on which the Forward and futures transactions previously concluded are paid, and delivery of the underlying assets is made (i.e. the Liquidation dates).
Français: Dates de
Español: Fecha de liquidación
The amount of money subscribed by the shareholders, At par, to a company.
Français: Capital actions, Capital de dotation
Español: Capital en acciones, capital social
The persons or entities owning a share in a corporation. Compare with Bondholders.
The Book value of the companys net assets (i.e. total assets less total liabilities).
Français: Fonds propres
Español: Patrimonio neto
See Paid in surplus.
Français: Prime sur
Español: Share premium
An index showing the changes in the average prices of shares or a group of shares on the stock market.
Français: Indice sur
Español: Indice de cotización de las acciones
A written instrument signed by the captain of a vessel, listing the individual shipments constituting the vessel's cargo.
Español: Manifiesto de buque
All of the cargo carried under the terms of a single bill of lading .
Español: Expedición, embarque
Non-yen denominated bonds issued in Japan by non-residents. See also Foreign bonds.
Español: Bono shogun
The sale of a futures contract to hedge a market position, i.e. to eliminate or decrease the risk of a decline in the value of an asset (securities, commodities, foreign exchange etc.), or to anticipate a borrowing need. Opposite: Long hedge.
Français: Vendre à
Español: Cobertura con posición corta, cobertura corta
A cross border loan (characterized as a Lease) offered by Japanese leasing companies, which may be used as leverage debt in a Leverage lease or simply as a private placement.
Français: Bail Shogun
Español: Arrendamiento shogun
The situation of an investor who has sold securities or commodities without actually owning them, on the expectation that the price of these securities or commodities will fall. A short position must eventually be covered by an offsetting purchase of the securities or commodities sold. Opposite: Long position.
Español: Posición corta
Commitments which provide for settlement within a relatively short period of time, usually six months (though short-term may sometimes refer to commitments with repayment terms of up to two years). Short-term credit is usually related to the sale of consumer goods and raw materials.
à court terme
Español: Compromisos a corto plazo
Deposits which may be transferred or withdrawn on demand from a bank. They typically earn little or no interest. In most countries the main kind of sight deposit account is a cheque account. Compare with Saving deposits.
Français: Dépôts à
Español: Depósito a la vista
A bill of Exchange which becomes due for payment as soon as it is presented to the party obligated to pay, and in general a draft payable upon presentation to the drawee. Compare with Date draft, time draft.
à vue, Effet à vue
Español: Letra a la vista, efecto a la vista
The interest rate on a loan based only on the initial amount of the loan. Over time, the interest charges grow in a linear fashion. e.g. a $1000 loan earning simple interest of 10% per annum would accumulate to $1100 at the end of the first year, $1200 to the end of the second year, etc. Compare with Compound interest.
Español: Interés simple
A sum of money usually set aside at regular intervals which will earn compound interest, ultimately sufficient to meet a known future capital commitment or loan repayment. Sinking funds may, for instance, be used to finance the replacement of Fixed assets at the end of their useful life or to redeem loans, stocks or other debentures upon maturity.
Español: Fondo de amortización
A condition sometimes included in corporate bond contracts whereby the issuer is required to withdraw a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.
Français: Exigence relative au fonds
Español: Requisito de fondo de amortización
Français: Society of
Worldwide Interbank Financial Telecommunication
Español: Sociedad para las Telecomunicaciones Financieras Interbancarias Mundiales
This refers to a weak currency which is a less desirable means of payment than other currencies. Countries with weak currencies are those which tend to have frequent currency devaluation, balance of payments difficulties or political instability. A soft currency is usually not fully convertible to all currencies but only perhaps to some other "weak" currencies. Contrast with Hard or strong currency.
Français: Monnaie faible
Español: Moneda débil, moneda blanda
A loan by a government or multilateral Development bank which carries no (or below market rate) interest, although there is usually a small annual service charge. It is typically extended to developing countries and has a long repayment period. See also Concessional funds.
Français: Prêt bonifié
Español: Préstamo en condiciones favorables
The ability of a borrower to meet obligations as they become due. Opposite: Insolvency.
The ratio between a bank's capital and its assets. See also Capital ratio.
Español: Razón de solvencia
A unit of account issued and allocated by the IMF to its member states. It represents an international, non convertible paper money created by the IMF, which member countries may use in case of deficit in their balance of international payments to settle debts with another country, or with the IMF.
Français: Droits de tirages spéciaux (DTS)
Español: Derecho especial de giro (DEG)
See Ocean marine insurance policy.
Español: Póliza marítima especial
An independent corporation especially created, even if sometimes with a nominal capital, with the purpose of holding property titles, channelling funds for an export project or project financing.
à but spécial
Español: Sociedad de carácter especial
Français: Droit spécifique
Español: Derecho específico
A policy covering an individual export contract against failure to receive the sums due from the foreign buyer. An ECA may charge a higher premium for Specific Coverage than for Comprehensive Coverage because of the "selected risk" nature of the coverage.
Français: Police/Couverture spécifique
Español: Póliza específica
A person who takes Positions on the market in an attempt to anticipate price changes, with the aim of earning a profit. A speculator does not use the market in connection with the production, processing, marketing or handling of a product. Compare with Trader.
The market for the purchase and sale of commodities, securities and other financial instruments for immediate delivery, as opposed to a Futures market which provides for delivery at some future point in time. By consensus, immediate delivery is understood as two business days.
Español: Mercado de entrega inmediata, mercado al contado
The current market price of an actual physical commodity or a security. Also called cash price.
Français: Prix au
Español: Tipo al contado, cotización al contado
In foreign exchange dealings this is the rate quoted for immediate delivery of a foreign currency.
Français: Taux au
Español: Precio de entrega inmediata
(1) The gap between the Bid and ask prices of a security, commodity or foreign exchange.
(2) The difference between the spot and forward rates (in foreign exchange trading), or price (for trade in commodities or securities).
Français: Ecart de cours
Español: Margen, diferencial
A term indicating the combination of slow economic growth (stagnation) and price increases (inflation).
Español: Estancamiento con inflación, estanflación
One of the top credit Rating agencies.
Español: Standard and Poors
An international trade classification system developed by the United Nations in 1950 and used solely by international organizations.
Français: Standard International Trade
Español: Clasificación Uniforme para el Comercio Internacional (CUCI)
In a securities issue, this is an agreement by the underwriter to purchase any stock not taken up by public investors, in return for a standby fee.
Français: Accord Standby
Español: Acuerdo de compromiso contingente
An arrangement whereby members of the IMF have the right to borrow a certain percentage of the quota allocated to them by the Fund, for a given period of time. The stand-by arrangement specifies the amount the country may borrow, when, for how long and under what terms. The arrangements are extended for up to three years and are typically intended as bridging loans for countries with balance-of-payment difficulties.
Español: Acuerdo de derecho de giro
These are arrangements to lend money in case of need, usually at market rates and sometimes with a commitment fee. Overdraft facilities are sometimes used as standbys by corporate borrowers.
Español: Línea de crédito
A letter of credit which is usually issued as a guarantee against the non-fulfilment of a contract. Standby letters of credit do not constitute a means of payment but are a guarantee of indemnity in case of non-execution of the contract by the exporter. They are generally used to guarantee financial obligations or contractual performance obligations. Compare with Letter of credit.
Français: Lettre de crédit "Standby"
Español: Carta de crédito contingente
Government agencies especially established for the conduct of international trading activities, such as government-operated import/export monopolies and marketing boards with special or exclusive privileges to import and export. They are sometimes also engaged in the direct manufacturing of certain export products.
Français: Entreprise étatique de négoce
Español: Empresas comerciales del Estado, empresas de comercio de Estado
A Floating Rate Note where the spread changes over time or on a pre-set basis.
Français: FRN à paliers
Español: Bono con interés flotante y escalonado
(1) Ownership of a corporation which is represented by its Shares.
(2) Shares traded on the stock exchange.
(3) Inventories held by companies in warehouses.
Français: Actions; Inventaire
The ratio of Inventories to the company's total output.
Español: Relación entre existencias y producción
A fixed interest rate bond (such as an Eurobond) or loan without the option of Conversion into equity.
Français: Dette sans
Español: Bono de interés fijo
A letter of credit in which the opening bank simply promises to pay the beneficiary.
Français: Lettre de crédit normale (directe)
Español: Carta de crédito irrevocable
A bond or other security issued without any Conversion or Warrant clause, but which yields a fixed interest rate for the entire period up to maturity.
(obligations ordinaires, émissions ordinaires)
Español: Obligación ordinaria
The price at which Put options and Call options can be exercised (i.e. to sell for a put or to buy for a call). The options are 'in the money' or 'out the money' depending on whether the difference between the strike price and the spot price on the markets is positive or negative. The strike price is sometimes called the exercise price.
Español: Precio de ejercicio
A clause whereby the bank has the right to reverse or cancel a credit entry if the counter value of the Promissory notes or other debt certificates (such as Bills of exchange, Drafts and cheques) cannot be collected.
Español: Sujeto a cobranza
An unsecured bond which ranks after secured debt, Debenture bonds and, in the case of Liquidation of the issuing company, often also after some general creditors.
Español: Bono secundario
In the event of bankruptcy of the borrower, senior debt takes priority over subordinated debt in terms of repayment of the relative debt claims.
Español: Deuda no prioritaria
(1) A clause sometimes inserted in the terms of a share issue whereby the rights of the shareholders rank after the rights of some, or all, unsecured creditors of the borrower in the event of his Liquidation.
(2) A provision in a bonds issue whereby, in the event of a new bond issue, the new lenders' claims are subordinated to the claims of the existing bondholders.
A policy of the Paris Club creditors whereby loans extended after the cut-off date are not subject to Rescheduling.
Español: Estrategia de subordinación
A policy defining the general conditions of the guarantee but leaving the exporter the choice whether to subscribe or not.
Español: Póliza de subscripción
Costs which have already been incurred and cannot be reversed.
Français: Sunk costs
Español: Costo irrecuperable
A financing arrangement under which an exporter extends credit to a foreign importer to finance his purchase. Usually the importer pays a portion of the contract value in cash and issues a Promissory note or accepts a draft as evidence of his obligation to pay the balance over a period of time. The exporter thus accepts a deferred payment from the importer, and may be able to obtain cash payment by discounting or selling the draft or promissory notes created with his bank. Compare with Buyers credit.
Español: Crédito al proveedor, crédito suministrador, crédito de proveedores
A trade financing arrangement by which a bank or an ECA directly extends a loan to the exporter, often collateralized by the exporters pledge of his export receivables. The bank or ECA may also purchase or discount the exporters receivables with full, limited or no recourse against the supplier.
Français: Financement sous forme de
Español: Financiamiento de crédito suministrador
A contract under which a supplier commits himself to supply a raw material, product or service for a certain price and at a stated period, or to pay for an alternative supply if he cannot provide it himself as agreed.
Français: Contrat de type
Español: Contrato de suministro o pago
American bonds, guarantees and obligations such as performance sureties, completion bonds etc.
A credit guaranteed by a bond issue.
Español: Crédito de garantía
A Eurobond issued by a Japanese corporation.
Español: Bono sushi
In general, an arrangement whereby two parties lend to each other on different terms, e.g. in different currencies, and/or at different interest rates (fixed versus floating).
(1) In a foreign currency swap, two parties exchange on the Spot market (usually at the prevailing spot rate) sums of money expressed in different currencies and these sums are re-exchanged forward. Fixed interest rates are also calculated on the swapped principal amounts. Foreign currency swaps are often used by Central Banks to support the domestic currency, through the swap of the domestic currency for a loan from another Central Bank.
(2) An interest rate swap is an exchange, between two parties, of the cash flows from fixed rate as against floating rate investments, where the cash flows are usually in the same currency and where there is no exchange of principal.
An option on a swap.
An acronym for The Society for Worldwide Interbank Financial Telecommunication. This is a closed network providing secure global communication between financial institutions in over 185 countries.
An association or group of individuals or companies which jointly carries out a financial or industrial project, such as the underwriting of a new bond issue.
A credit or loan granted jointly by a group of banks, typically when the loan is too large to be provided by a single bank (such as eurocredits). Syndicated loans are managed by a lead bank which assesses the borrower's needs and tries to get other banks to participate in the loan. The syndicate leader receives a management fee.
Français: Crédit syndiqué, prêt syndiqué
Español: Crédito sindicado, préstamo sindicado
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