glossary on trade financing terms g

G GATS: See General Agreement on Trade in Services Franỗais: GATS Español: GATS GATT: See General Agreement on Tariffs and Trade Franỗais: GATT Espaủol: GATT GDP: See Gross Domestic Product Franỗais: GDP Espaủol: GDP Gearing: This indicates the degree of a company’s indebtedness The most common measures of corporate indebtedness are the debt ratio (measuring the share of the company’s capital which is in the form of debt) and the debt-equity ratio(the ratio between the company’s debt and the equity provided by its shareholders) The higher the gearing ratios, the more critical is the company’s financial situation and the more vulnerable it is to bankruptcy The term gearing may also refer to the ratio between ordinary shares and preference shares in the company’s equity The expression "income gearing" refers to the proportion of the company’s profits used to pay interest The US expression for gearing isleverage Franỗais: Effet de levier Español: Apalancamiento General Agreement on Tariffs and Trade (GATT): An international agreement, established in January 1994, providing the legal framework for international trade, whose primary mission is the reduction of barriers to free trade between member countries The GATT is now managed by the World Trade Organisation, based in Geneva, Switzerland Franỗais: Accord Gộnộral sur les Tarifs Douaniers et le Commerce (AGETAC) Español: Acuerdo General sobre Aranceles Aduaneros y Comercio (GATT ) General Agreement for Trade in Services (GATS): Created in the Uruguay Round as a comprehensive system establishing multilaterally-agreed and legally enforceable rules and disciplines covering international trade in services The Agreement contains a framework of general rules and disciplines, annexes addressing special conditions relating to individual sectors and liberalization commitments specific to the service sectors listed in each country's schedule Franỗais: Accord Gộnộral pour le Commerce des Services Español: Acuerdo General sobre el Comercio de Servicios (AGCS) General Arrangement to Borrow: A credit line set up in 1962 by the Group of Ten on behalf of the International Monetary Fund Until January 1983, this credit line was limited to loans to G10 members but since then it has been open to all IMF members Franỗais: Disposition Gộnộrale pour Emprunter Espol: Acuerdos Generales para la Obtención de Préstamos (AGP) General creditor: An unsecured creditor Franỗais: Crộancier gộnộral Espaủol: Deudor general General Export License: This gives its holder the right to export to specified countries without requiring any additional formal application or prior written authorisation Compare with Validated Exports License Franỗais: Licence dExportation Gộnộrale Espaủol: Licencia general de exportaciún General tariff: A tariff which applies to countries which not enjoy preferential or Most Favoured Nation (MFN) tariff treatment Where the general tariff rate differs from the MFN tariff rate, the general tariff rate is usually the higher Franỗais: Tarif général Español: Arancel general Generalized System of Preferences (GSP): A preferential trade framework under which exports of developing countries are allowed to enter the markets of industrialised countries at a lower preferential tariff rate However, the GSP framework includes a number of important exceptions, mainly in relation to exports of textiles and agricultural goods from developing countries In general, the GSP is one element of a co-ordinated effort by the industrial trading nations to bring developing countries more fully into the international trading system Franỗais: Systốme Gộnộralisộ des Prộfộrences (Privilốges) Español: Sistema Generalizado de Preferencias (SGP) Gilt-edged bonds: Highly rated bonds, whose issuers have a long-standing reputation of paying interest on time See also Gilt-edge securities Franỗais: Obligations de premier ordre Español: Gilt-edged bonds Gilt-edged securities: A UK term indicating the loans made to the government This type of security is considered practically "risk free", since the risk of default associated with the government is the lowest possible Some types of gilt-edged securities are known also as Treasury bills Franỗais: Titres de premier ordre Español: Gilt-edged security Giro: A payment system set up by a group of banks or postal authorities which allows customers of one bank to make payments to customers of any other bank without the use of cash or cheques The customer simply needs to fill in an instruction form which is passed through a central clearing system operated by the group Franỗais: Giro Espaủol: Giro bancario, transferencia bancaria Global policy: A credit insurance policy which covers all export activities of the exporter during an agreed period, usually one year Franỗais: Police globale Espaủol: Púliza global Global quota: An import quota applying to the total imports of a specific product coming from all countries Franỗais: Quota global Espaủol: Contingente global GNP: Gross National Product Franỗais: PNB Espaủol: GNP Good delivery: A term used in purchase or sales contracts indicating that the merchandise, securities or precious metals which are the object of the transactions meet the general delivery conditions of the market Franỗais: Bonne livraison Espaủol: Buena entrega Grace period: The period during which no repayments of principal (sometimes principal plus interest) are due from the borrower to the lender With reference to public sector debt rescheduling, it indicates the period, usually of several years, during which no payments (either principal or interest) need to be made See also rescheduling agreement Franỗais: Pộriode de grõce Espaủol: Perớodo de gracia, período de amortización diferida Grant element: A measure of the degree of concessionality of a loan It is defined by the OECD's Development Assistance Committee (DAC) as the difference between the face value of the loan and the present value of the stream of repayment on that loan (discounted at a flat rate of 10 percent regardless of the currency of denomination), expressed as a percentage of the face value Franỗais: Elộment de subvention Espaủol: Factor concesionario, factor de donación Green clause credit: A clause in a letter of credit enabling the buyer to receive pre-shipment advances against a collateral represented by, for example, warehouse receipts/warrants It is commonly used in the export of agricultural commodities, where the company may raise funds to harvest new crops for export by pledging available stocks as collateral Franỗais: Crộdit clause verte Español: Carta de crédito cláusula verde Gross: The total amount of money given before any deductions have been made For example, Gross income refers to income before taxation, Gross Domestic Product indicates the value of a country's output of goods and services before any deduction is made for the depreciation of the country's capital investment or for taxation Opposite: Net Franỗais: Brut Espaủol: Bruto Gross Income: See Gross Franỗais: Revenu Brut Español: Ingreso bruto Gross interest: Interest paid before deductions for withholding tax are made from the original amount Opposite: net interest Franỗais: Intộrờt brut Espaủol: Interộs bruto Gross Domestic Product (GDP): A measure of the market value of all goods and services produced in a given country during the reference period of time, regardless of the asset’s ownership Unlike Gross National Product, GDP excludes receipts from that country’s assets invested abroad, such as the earnings of foreign affiliates of domestic corporations Franỗais: Produit Intộrieur Brut (PIB) Espaủol: Producto interno bruto (PIB) Gross National Product (GNP): A measure of the value of a nation's output of goods and services during a particular time period produced by domestic assets It thus includes the revenues from the country’s business operations conducted abroad, as well as earnings from foreign investments Nominal GNP measures the value of output expressed in present day prices, while Real GNP measures output value in constant prices (i.e taking account of inflation) The latter is the better indicator of the countrys economic growth Franỗais: Produit National Brut (PNB) Español: Producto Nacional Bruto (PNB) Gross profit: The difference between a company’s sales revenues and its production costs (such as inventories, raw materials, wages, etc.) before taxation Franỗais: Profit brut Español: Beneficio bruto Gross weight: The full weight of a shipment, including both goods and packaging Compare with Tare weight Franỗais: Poids brut Espaủol: Peso bruto Gross yield: The revenue produced by investments (such as securities, real estate, property, etc.) before any deductions, such as for charges or taxes, are made Net yield is the opposite Franỗais: Rendement brut Espaủol: Rendimiento bruto, producto bruto Group of Ten: The group of wealthy industrial countries ready to lend their currencies to the International Monetary Fund under the General Agreements to Borrow, up to specified amounts when supplementary resources are needed The finance ministers of these countries comprise the Group of 10 Its members include: Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, Sweden, Switzerland, the United Kingdom and the United States The numerical name persists, although the number has increased to 11 with the addition of Switzerland in 1984 Franỗais: Groupe des dix Español: Grupo de los Diez Guarantee: A contractual engagement protecting the holder of the guarantee against default, bankruptcy or failure of a third party The guarantor will pay the debt to the obligee if the third party (principal debtor or obligor) fails to perform It also refers to the commitment provided by an Export Credit Agency to reimburse the lender (frequently a commercial bank) if the exporter fails to repay a loan In return for this coverage, the lender pays a guarantee fee Although guarantees may be unconditional, they frequently have conditions attached to them Franỗais: Garantie Espaủol: Garantớa Guarantee credit: A bank credit not involving the actual provision of funds by the bank, but rather the bank’s assumption of liabilities or obligations on behalf of its customers, e.g bill guarantee, acceptance or surety credit Compare with money loan Franỗais: Garantie de crộdit Espaủol: Crộdito de garantớa Guarantee Fee: A fee charged by an Export Credit Agency to provide assurance of payment or compliance by a third party Sometimes also called Premium Franỗais: Honoraires, commission de garantie Espaủol: Comisiún de garantía Guaranteed bond: A bond issue where a third party (e.g parent company) guarantees the fulfilment of the terms of the issue Franỗais: Obligation garantie Espaủol: Obligaciún garantizada Guaranteed credit: A credit secured by one or several guarantees In some European countries, special guarantee cooperatives have been founded for this purpose, such as mortgage guarantee co-operatives The bank usually requires joint and several guarantees before agreeing to extend credit Franỗais: Crộdit garanti Espaủol: Crộdito garantizado ... Preferencias (SGP) Gilt-edged bonds: Highly rated bonds, whose issuers have a long-standing reputation of paying interest on time See also Gilt-edge securities Franỗais: Obligations de premier...General Agreement on Tariffs and Trade (GATT): An international agreement, established in January 1994, providing the legal framework for international trade, whose primary mission is the... countries Franỗais: Quota global Espaủol: Contingente global GNP: Gross National Product Franỗais: PNB Espaủol: GNP Good delivery: A term used in purchase or sales contracts indicating that the merchandise,