glossary on trade financing terms j l m n

J J-curve: A graphic description of the evolution of a country's current account balance following a devaluation With devaluation, the cost of exports decreases while that of imports increases As it takes time for the volumes of exports and imports to adjust to the new relative prices, the current account may initially worsen before improving in response to the devaluation of exchange rates Franỗais: Courbe J Espaủol: Curva en J, curva en forma de J Joint and several guarantee: A guarantee by which the guarantor or guarantors commit themselves jointly and severally with the principal debtor The guarantor or guarantors may each be sued independently of the principal debtor Franỗais: Garantie conjointe et solidaire Espol: Garantía mancomunada y solidaria Joint guarantor: A guarantor who jointly and severally pledges to become legally liable for the debt or default of another person Legal entities can also act as a joint guarantor Also known as joint surety Franỗais: Garant solidaire Espaủol: Garante solidario, avalista solidario Joint Venture: A business undertaking between two or more companies or organizations which will share ownership and control of the joint companys activities Franỗais: Entreprise en participation Espaủol: Empresa conjunta, empresa mixta, operación conjunta, proyecto mixto, proyecto en común, proyecto de riesgos compartidos Junior creditors: Second-line creditors in case of a debtor’s default, vis-à-vis senior creditors who have priority in the distribution of assets Franỗais: Crộanciers de rang inférieur Español: Acreedor no prioritario Junk bonds: High-risk bonds issued by companies with credit ratings below investment grade (a ranking given by the credit rating agencies) Such bonds are also called high-yield bonds as they offer investors higher yields than bonds of financially sound companies They are usually issued to finance leverage buy-out operations Franỗais: Obligations haut risque Espaủol: Bono basura Just-in-time (JIT): A manufacturing system which minimises inventories by arranging that components and parts be delivered as they are needed in the production process Franỗais: Juste temps Español: Justo a tiempo (JAT) L Lag strategy: A foreign exchange management strategy consisting of delaying payments or receipts in a foreign currency, on the expectation of the evolution of the foreign exchange rate Opposite: Lead strategy Franỗais: Stratộgie de retardement Español: Estrategia de atraso Latin American Integration Association (LAIA): A regional economic and trade integration agreement involving most Latin American nations Franỗais: Association dintộgration des pays dAmộrique Latine Espaủol: Asociación Latinoamericana de Integración (ALADI) Last in, first out (LIFO): LIFO is a method of evaluating and calculating a company's inventories (stocks, in the UK) See also First in, first out (FIFO) Franỗais: Dernier entrộ-premier sorti Espaủol: (mộtodo de) Ultima entrada, primera salida (UEPS) L/C: Abbreviation for Letter of credit Franỗais: L/C Espaủol: L/C Lead strategy: The opposite of the lag strategy defined above This strategy implies that firms will pay off foreign currency debts and collect foreign currency receipts early This, typically, because the local currency is expected to weaken Franỗais: Stratộgie d'anticipation Espaủol: Estrategia de adelanto Leasing: A contract whereby an asset is supplied by its owner (the lessor) to another party (the lessee) for a specific period (usually long term), in return for periodic compensation (lease payments) The lessor retains title to the asset, while the lessee acquires the right to use it during the specified time without acquiring ownership rights Leasing is an indirect form of financing, as it permits the use of an asset whose purchase would otherwise have had to be financed by a loan It also entails fiscal advantages compared with long-term loans Leasing contracts are usually signed for the use of industrial equipment, facilities and capital goods (such as machines, technical installations, vehicles, etc.) International leasing is a form of financing increasingly used in the export of equipment Franỗais: Crộdit-bail Espaủol: Arrendamiento financiero Legal lien: See Lien Franỗais: Droit de rộtention Español: Legal lien Lending limit: The maximum value of a particular asset which may be used as collateral for a loan or mortgage (sometimes expressed as a percentage of the assets total value) Franỗais: Limite de crộdit Espaủol: Lớmite de crédito Letter of credit (L/C): A financial document issued by an issuing bank at the request of a buyer (applicant) to a seller (beneficiary), which guarantees payment to the seller if the terms and conditions specified in the L/C are fulfilled It usually contains a brief description of the goods, the documents required, shipping date and an expiry date after which payment will no longer be made There are different types of L/C, according to the level of security they grant the beneficiary (seller/exporter) (1) Irrevocable Letter of Credit: This can neither be modified nor cancelled without the agreement of all the parties concerned The payment by the issuing bank is guaranteed provided that the beneficiary (seller/exporter) satisfies all the terms and conditions of the L/C (2) Revocable Letter of Credit: This may be modified or cancelled by the issuing bank at any time and without notice to the beneficiary However, payments or drafts negotiated within the terms of the credit before receipt of the revocation or amendment notice from the issuing bank remain validly binding for all parties Negotiability is restricted to the advising bank and confirmation is usually not available The revocable letter of credit gives maximum flexibility to the buyer but involves risks for the seller (3) Confirmed Irrevocable Letter of Credit: A L/C in which the responsibility of another bank (the confirming bank, which is usually the same as the advising bank) has been added to that of the issuing bank, upon authorization or request of the latter The confirmation represents a definite undertaking by the confirming bank, which obligates itself in the same manner as the issuing bank It is used to back up the credit standing of the issuing bank and to mitigate risk by replacing a foreign bank risk with a domestic bank risk (4) Irrevocable Unconfirmed Letter of Credit: A L/C which has been advised through an advising bank, acting as an agent of the issuing bank, without however assuming any responsibility towards the beneficiary except for taking reasonable care to check the apparent authenticity of the documentary credit which it advises (5) Revolving Letter of Credit: A type of L/C issued only once and through which the money made available to the seller, after being drawn within a stated period of time, will again become available in the future, usually under the same terms and without another L/C being issued This type of credit is used in connection with regular and ongoing purchases from a foreign supplier Revolving L/Cs may be revocable or irrevocable, and the revolving element may be linked to time and/or value (6) Documentary Letter of Credit: A L/C where the issuing bank stipulates that certain documents should accompany the draft These documents assure the applicant (buyer/importer) that the merchandise has been shipped, is in good condition and that title to the goods has been transferred to the importer (7) Negotiable Letter of Credit: A L/C issued in such form that it allows any bank to negotiate the documents See also Irrevocable Negotiation Letter of Credit, Irrevocable Straight Letter of Credit, Back-toBack letter of credit, Red Clause credit, Green Clause credit, Standby Letter of Credit Franỗais: Lettre de crédit (L/C) Español: Carta de crédito Letter of Credit -Traveller’s (circular): A L/C issued on behalf of a customer who plans to travel extensively The customer pays for the L/C when it is issued and can request payments from the correspondent banks indicated by the issuing bank, during a specified period of time The correspondent banks will honour the drafts up to the amount of credit Each bank which honours a draft endorses the L/C with the date the payment was made, the bank's name, the amount drawn against the L/C and the charges to the issuing bank's account See also Advised L/C Franỗais: L/C lettre de voyage circulaire Español: Carta di credito - Traveller's Leverage: A US term to indicate the degree to which a business is funded by loans rather than by shareholders' equity (i.e the indebtedness of a firm compared to its equity structure) This is equivalent to gearing in UK terms Franỗais: Effet de levier Español: Apalancamiento financiero Leveraged buy-out (LBO): The take-over/acquisition of a company, financed largely by debt (i.e loans and bonds) rather than equity The loans extended and the bonds issued to finance the take-over are usually secured against the assets and cash flow of the target company (i.e being bought) Due to the large amount of debt relative to equity in the newly bought company, its bonds are typically junk bonds Franỗais: Acquisition par effet de levier Espaủol: Compra apalancada de empresas Leveraged lease: A Lease arrangement whereby the lessor borrows a large proportion of the funds needed to purchase an asset and then grants the lender a Lien on such asset, together with pledging the lease payments to secure the borrowing Franỗais: Bail effet de levier Espaủol: Arrendamiento apalancado Liabilities: A company’s obligations towards its creditors, suppliers, customers etc., as distinguished from those to its owners, partners or shareholders Liabilities consist of borrowed funds and must be paid in the short-, medium- or long-term Short-term debts, bank loans and overdrafts are often known as current liabilities With reference to banks, their liabilities are made up of deposits, bonds and bills Opposite: Assets Franỗais: Dettes Espaủol: Pasivos, obligaciones Liability on bills of exchange: A liability created by the signature on the bill of Exchange Franỗais: Dette sur lettre de change Español: Obligaciones basadas en la letra de cambio LIBID: An abbreviation for London Interbank Bid Rate (interbank rate), i.e the rate paid by a first-rate bank on time deposits from other first-rate banks Franỗais: LIBID Espaủol: LIBID LIBOR: See London Inter Bank Offer Rate Franỗais: LIBOR Espaủol: LIBOR Licensing agreement: A business agreement whereby one firm gives another the right to use assets such as trademarks, patents, copyrights or other know-how, against the payment of a fee Franỗais: Contrat de licence Espol: Acuerdo sobre concesión de licencia Licensing arrangement (in trade): A procedure requiring potential importers or exporters to secure permission from government authorities in order to be able to conduct trade transactions Franỗais: Disposition relative la licence (dans le commerce) Español: Acuerdo de licencia Lien: A legal term indicating the right or claim of a creditor against the property of a debtor in connection with secured debt financing The creditor is entitled to hold such property until the debt is paid or some other obligation is fulfilled Franỗais: Privilốge, Droit de rộtention, Nantissement Espaủol: Gravamen, prenda, privilegio Lien in rem, right of lien: A restricted right to hold and retain a property until the creditor’s claim is satisfied If the claim is not met, the creditor is entitled to realize the property securing the lien and satisfy his claim out of the resulting proceeds Franỗais: Droit de rétention Espol: Derecho prendario, derecho de retención LIFFE (London International Financial Futures Exchange): An exchange market dealing in futures contracts (on currencies, commodities, stocks, bonds, treasury bills, etc.) Standardized financial futures have been traded on this exchange since 1982 Franỗais: LIFFE (London International Financial Futures Exchange) Espaủol: LIFFE (London International Financial Futures Exchange) LIFO: See Last in, first out Franỗais: LIFO Espaủol: LIFO Lighter: A vessel transferring cargo between ship and shore, used mainly in harbours and inland waterways Franỗais: Allốge, Pộniche Espaủol: Barcaza, gabarra Lighterage: The cost of loading or unloading a vessel by barges Franỗais: Dộchargement par allèges Español: Gabarraje Limit: (1) The highest/lowest acceptable price for the purchase/sale of securities, where the transaction may be conducted either directly or through a broker Price limits are set to avoid the danger of adverse or unexpected price changes (2) The upper limit for the utilization of a line of credit Franỗais: Limite Espaủol: Lớmite Limited recourse financing: A financing technique for major capital projects where the lender's decision to extend funds is based mainly on the project's assets as collateral and the expected cash flows and earnings as a source of funds for repayment, rather than on the general creditworthiness of the borrower Franỗais: Financement recours limitộ Español: Financiamiento derecho de recurso limitado Line of credit: A credit arrangement whereby the bank puts at its client’s disposal a maximum loan balance and agrees to finance within this balance several contracts subsequently entered into by the client Lines of credit may set up for miscellaneous capital goods purchases (usually known as general purpose lines of credit) or for contracts associated with one project (usually known as project lines of credit) Franỗais: Ligne de crộdit Espaủol: Line of credit Liquid assets: Assets which can be readily and cheaply turned into cash, notably cash itself and short-term securities Franỗais: Actifs liquides Espol: Activos líquidos, valores realizables a corto plazo, disponibilidades líquidas, haberes líquidos, fondos líquidos Liquidation: (1) The dissolution of an asset or of a company through its sale to settle outstanding debts (2) The settlement of forward or future transactions on the corresponding market Franỗais: Liquidation Espaủol: Liquidaciún Liquidity: The speed with which a financial asset may be liquidated Within a company, it refers to the availability of liquid funds, which may be used to honour its payment obligations on time or to finance new projects In a broader sense, it refers to the width of a country’s financial markets: a market is said to be liquid when the level of trading activity is high, thus allowing buying and selling with minimum price disturbance Franỗais: Liquiditộ Espaủol: Liquidez Liquidity Adequacy: This indicates whether the institution has met pre-set liquidity standards and ratios for that particular sector of activity Liquid assets are graded according to their marketability and liquidity risk Franỗais: Suffisance de liquiditộs Espaủol: Suficiencia de liquidez Liquidity preference: The inclination of individuals and corporations to keep their assets in varying degrees of liquidity One argument is that greater liquidity allows better investment flexibility at times of market upheaval Franỗais: Prộfộrence pour les liquiditộs Espaủol: Preferencia por la liquidez Liquidity ratios: These are ratios which measure a firm's liquidity, i.e its ability to meet its short-term financial obligations on time, such as the acid test or current ratio In banking these refer to the ratios set by the Central Bank, requiring that commercial banks keep a certain share of their assets in liquid form (e.g cash and short-term marketable instruments such as Treasury bills) in order to meet day-to-day demands for cash Franỗais: Rapports, ratios de liquiditộs Espaủol: Coeficientes de liquidez An Islamic financing contract enabling Islamic financial institutions to provide funds to any client who would like to start an entrepreneurial activity but without the financial strength required The institution is entitled to the profit of the activity, while the client receives a percentage of this profit as a fee for the know-how and management services provided Franỗais: Modaraba Espaủol: Modaraba MONEP (Marchộ des Options Nộgotiable de Paris): A French market dealing with negotiable options contracts Franỗais: MONEP Español: MONEP Monetary assets: Assets denominated in monetary terms or with a face value (cash, account receivables, bonds etc.) Non-monetary assets on the other hand include assets such as land, buildings and equipment Franỗais: Actifs monộtaires Espaủol: Activo monetario Money loan: A financing arrangement whereby the bank extends payments directly, such as in the form of loans or discount credit Opposite: Guarantee credit Franỗais: Prờt monộtaire Espaủol: Prộstamo en dinero Money market: The market for lending or borrowing short-term funds and dealing in negotiable instruments and securities (such as treasury bills and commercial paper) In addition to the national money markets, the Euromoney market has developed in recent years into an efficient international market place for dealing in short-term funds Compare with Capital market Franỗais: Marchộ monộtaire Espaủol: Mercado del dinero, mercado monetario Moody's: A credit rating agency Franỗais: Moody's Espaủol: Moodys Mortgage: The written transfer of title to some specified real estate property, but not of its possession, to secure the payment of a debt or the performance of some obligation See also Lien Franỗais: Hypothốque Espaủol: Hipoteca Mortgage bank: A bank specialized in granting mortgage loans See also Mortgage note Franỗais: Banque hypothộcaire Espaủol: Banco hipotecario, sociedad de crédito hipotecario Mortgage loan: A loan secured by a mortgage on real estate property as collateral, which obliges the borrower to make a predetermined series of payments Franỗais: Prêt hypothécaire Español: Préstamo hipotecario Mortgage note: A security with repayments spread over an agreed long period of time Franỗais: Cédule hypothécaire Español: Cédula hipotecaria Most Favoured Nation Treatment (MFN): A GATT term indicating a country’s commitment to extend the trade concessions applied to a particular trading partner to all the other countries eligible for MFN treatment Thus, when a country cuts tariffs on a particular product imported from one country, this tariff reduction automatically applies to imports of this product from any other country eligible for MFN treatment Franỗais: Traitement de la nation la plus favorisée Español: Trato de la nación más favorecida, trato NMF Multi-currency credit line: An internationally used financial expression for a credit line which the borrower may draw in one or several of the currencies mentioned in the credit agreement Franỗais: Ligne de crộdit multi-monnaies Espol: Línea de crédito múltiples divisas, línea de crédito multidivisas Multilateral Investment Fund: This provides grants to promote market-oriented investment policy initiatives and reforms, encouraging domestic and foreign investment in Latin America and the Caribbean The Fund complements the activities undertaken by theInter-American Development Bank Franỗais: Fonds d'investissement multilatộral Español: Fondo Multilateral de Inversiones Multilateral Investment Guarantee Agency (MIGA): Set up in 1988 as part of the World Bank Group, to encourage equity and other types of direct investment flows towards developing countries It provides investors with coverage and guarantees against non-commercial risks, and advises local governments in developing countries on policies and programmes to foster foreign investments Franỗais: Agence multilatộrale de garantie d'investissement Espaủol: Organismo Multilateral de Garantía de Inversiones (OMGI) Multinational corporation: A company which owns and controls subsidiaries and plants outside the country in which it is based Being present in many different countries enables it to use world resources where they are cheaper and of higher quality, to service many different national markets and to reduce risks by diversification Franỗais: Multinationale Espaủol: Empresa multinacional, empresa transnacional Multiple exchange rate system: A system by which the government sets different exchange rates for different transactions Franỗais: Système de taux de changes multiples Español: Sistema de tipos de cambio múltiples Multilateral Lending Agency: A general term indicating a financial institution jointly owned by a group of countries and designed to promote international and regional economic co-operation Examples include the Asian Development Bank, the African Development Bank, the World Bank through the International Bank for Reconstruction and Development, the International Finance Corporation, etc Franỗais: Agence de prờt multilatộrale Español: Organismo multilateral de crédito Multi sourcing: An expression used to describe the provision of inputs (in the form of goods or services) from a number of different countries Franỗais: Ressources multiples Español: Suministro múltiple Mutual fund: A pool of money managed by an investment company, offering investors a variety of services according to the fund’s investment strategy and policy For instance, some funds seek to generate a regular income for their investors, some are set up to preserve investors' money, while others prefer to invest in rapidly growing and risky companies Franỗais: Fonds de placement Espaủol: Fondo (comỳn) de inversión N NASDAQ: The National Association of Securities Dealers Automated Quotations System This is the electronic quotation and computerized trading system in the United States for over-thecounter securities Franỗais: NASDAQ Espaủol: NASDAQ NAFTA: See North American Free Trade Agreement Franỗais: NAFTA Español: NAFTA National interest account: The account under which an Export Credit Agency agrees to cover those transactions which would not be considered eligible on the basis of its normal criteria, for instance because of the size of the risk connected with the transaction Coverage is extended with the support of the government, when the transaction is seen as beneficial or of special interest to the national economy Franỗais: Compte d'intérêt national Español: Cuenta de interés nacional National Treatment: When foreign companies are given the same competitive opportunities, including market access, and are subject to the same legal framework as domestic companies Franỗais: Traitement national Espaủol: Trato nacional Nature of buyer: A term referring to the type of corporate ownership, as this may affect the credit risk (commercial or political) and the guarantee/insurance fees The buyer can thus be private (private companies and public sector buyers without full faith and credit status) or public (government agencies and other public buyers with full faith and credit status) Franỗais: Nature de l'acheteur Espol: Características del comprador Negative amortization: A loan repayment schedule whereby the outstanding principal balance increases, rather than being amortized, because the scheduled periodic payments not cover the full amount required to amortize the loan The unpaid interest is added to the outstanding principal, for repayment at a later stage Franỗais: Amortissement nộgatif Espaủol: Amortizaciún negativa Negative interest or interest charge: Interest which is deducted from the principal Franỗais: Intộrờt nộgatif ou charge d'intộrờt Espaủol: Gastos (fiscales) por concepto de intereses Negotiating bank: In a letter of credit, the bank which accepts the documents for examination and, if these are found in order, credits the due amount to the beneficiary Franỗais: Banque nộgociatrice Espaủol: Banco negociador Negotiation fee: Also known as management fee, thus is a once-only fee for the arrangement of a financial facility by an ECA or a commercial bank Franỗais: Honoraires, commission de nộgociation Español: Negotiation fee Negotiable instrument: A financial instrument which may be transferred from one owner to another without informing the original issuer It provides evidence of the debt, and the holder of the instrument acquires legal title to the goods or property regardless of whether the previous holder had a defect in his title Negotiable instruments include bank notes, bearer bonds, cheques, certificates of deposit, etc Franỗais: Instrument nộgociable Espaủol: Instrumento negociable Net: The opposite of Gross This refers to what is left after the applicable deductions have been made For instance, Net profit/Net income indicates income after tax Net cash flow is a company's cash flow after dividends have been made Franỗais: Net Espaủol: Neto Net assets/Net worth: The company’s worth calculated by deducting total liabilities from its total assets If this is negative, the company is considered technically insolvent Franỗais: Actifs nets/Valeur nette Espaủol: Valor neto, patrimonio neto Net book value: See Book value Franỗais: Valeur comptable nette Español: Net book value Net buyer range: The price range within which the buffer stock manager must buy more of the commodity in order to prevent prices from falling excessively See also Buffer stock system and Net seller range Franỗais: Champ acheteur net Español: Margen neto del comprador Net current asset: See Working capital Franỗais: Actif circulant net Espaủol: Capital de explotación Net income (USA) / Net profit (UK): See Net Franỗais: Revenu net (USA) / Profit net (GB) Espaủol: Ingresos netos Net interest: The interest left after the deduction of withholding tax (tax at source) on interest or dividend Franỗais: Intộrờt net Espaủol: Interộs neto Net present value (NPV): Used in project evaluation, this is the present value of expected future cash flows, minus the cost Franỗais: Valeur actuelle nette Español: Valor actual neto (VAN) Net seller range: The price range within which the buffer stock manager must sell more of the commodity in order to keep prices from rising too far See also Buffer stock system and Net buyer range Franỗais: Champ vendeur net Espaủol: Margen neto del vendedor Net weight: The weight of the goods, excluding their packing Franỗais: Poids net Espaủol: Peso neto Net worth: See Net assets Franỗais: Valeur nette Espaủol: Net worth New Industrial Country (NIC): An OECD term indicating those countries which, after having experienced a rapid economic growth, have become "middle-income" countries (such as Brazil, South Korea, etc.) Franỗais: Nouveau pays industrialisé Espol: Ps de reciente industrialización (PRI) New issues: A general term for all forms of new long-term capital raising by borrowers A primary market is one on which a new issue of securities is offered for the first time to investors Franỗais: Nouvelles ộmissions Espaủol: Nuevas emisiones New York Commodity Exchange: The Futures market for trading in commodities in New York Franỗais: Bourse des matiốres premiốres de New-York Espaủol: New York Commodity Exchange New York Futures Exchange (NYFE): Set up in 1979 as a subsidiary of the New York Stock Exchange for futures trading Franỗais: New York Futures Exchange (NYFE) Español: New York Futures Exchange (NYFE) New York Stock Exchange (NYSE): Established in 1792, it is among the oldest and largest exchange both in the US and word-wide It is located in Wall Street in New York City Franỗais: New York stock Exchange (NYSE) Español: New York Stock Exchange (NYSE) Nikkei index: A quoted measure of stock price movements on the Tokyo stock exchange The Nikkei is an index (average) of 225 stocks on the Tokyo stock exchange Franỗais: Indice Nikkei Español: Indice Nikkei Nominal exchange rate: The actual foreign exchange quotation, as compared to the real exchange rate adjusted for changes in purchasing power caused by inflation Franỗais: Taux de change nominal Español: Tipo de cambio nominal Nominal value: "In name only" The value of anything (wages, GDP, exports, commodities, shares) expressed in current prices, not taking into consideration inflation Opposite: Real values Franỗais: Valeur nominale Espaủol: Valor nominal Non-accrual loan: A loan on which principal and/or interest have not been paid for 90 days Franỗais: Prờt en souffrance Español: Préstamo no redituable, préstamo improductivo Non-bank financial institution: A financial institution without a banking licence which cannot, therefore, collect deposits from the public Franỗais: Institution financiốre sans caractốre-bancaire Espol: Institución financiera no bancaria Noncash charge: A cost, such as Depreciation, depletion or amortization, not entailing a direct cash outflow Franỗais: Charge sans impact sur les liquiditộ Espaủol: Costo no monetario Non-marketable collateral: Security pledged as collateral for a credit transaction which cannot be sold easily because no market, or only a very restricted market, exists for it Opposite: Marketable collateral Franỗais: Garantie, collatộral non-nộgociable Espaủol: Garantớa no negociable Non-recourse financing: The purchase by a bank or other financial institution of a firm’s medium- and long-term accounts receivable (typically, claims for the export of goods) with no recourse against the firm in the event of the failure by clients to make due payment Franỗais: Financement sans-recours Espaủol: Financiaciún sin posibilidad de recurso Non-reproducible asset: A tangible asset with unique physical properties, such as a parcel of land, a mine, etc Franỗais: Actif non reproductible Espaủol: Activo no reproducible Nontariff measures (NTBs): Market access barriers, other than traditional custom duties, which make exports to a particular country difficult and costly NTBs may take the form of quotas, charges, discriminatory labelling and health standards and other restrictive conditions They may result from government or private sector action Franỗais: Mesures non-tarifaires Espaủol: Medida no arancelaria Non tradables: Goods and services, produced and consumed domestically which are not close substitutes of import or export goods and services Franỗais: Non nộgociables Espaủol: No comerciable Normal quote: The direct quote method in foreign exchange Franỗais: Cotation normale Espol: Cotización normal North American Free Trade Agreement (NAFTA): The free trade area agreement which came into force in 1994 between Canada, the United States and Mexico Franỗais: Accord de libre échange commercial d’Amérique du Nord Español: Tratado de Libre Comercio de América del Norte (TLC) Nostro account: An account which a domestic bank maintains at a foreign bank, expressed in foreign currency Opposite: Vostro (or Loro) account Franỗais: Compte Nostro Espaủol: Cuenta nostro "Not to order" clause: A clause printed on a bill or a cheque which excludes the possibility of transferring the paper through endorsement Transfer may be done exclusively by assignment and the creation of a new paper made out to the new holder Franỗais: Clauses "Pas l'ordre de" Español: Cláusula "no a la orden" Note issuance facility (NIF): A Revolving credit arrangement in the Eurocurrency market under which borrowers place shortterm (one to six months) notes via a syndicate of prime banks The borrowers' issue is backed by the commitment of the syndicate banks to purchase any paper which the borrowers may be unable to sell Franỗais: Facilitộ dộmission deffets Espaủol: Servicio de emisión de pagarés (SEP) Notes: A general term in the lending business indicating a credit instrument consisting of a written and unconditional promise to pay a sum of money, at some specified future date, to a named person or to the bearer More specifically, it may be used to refer to debt instruments with initial maturities greater than one year and less than ten years Franỗais: Effet Espaủol: Pagarộ Notification: In general, a formal and legal communication from one party to another In the presence of a bill, notification refers to the communication addressed by the owner of the cheque or bill to the previous holder and drawer, or by the endorser to the previous endorser, concerning the refusal of the drawee to pay under the bill In case of a shipment, notification is the communication by the shipping company of the arrival of goods at the discharge port Franỗais: Notification Espaủol: Aviso, notificaciún Notifying bank: See Advising bank Franỗais: Banque notificatrice Español: Banco notificador ... been traded on this exchange since 1982 Franỗais: LIFFE (London International Financial Futures Exchange) Español: LIFFE (London International Financial Futures Exchange) LIFO: See Last in, first... Exchange: See LIFFE Franỗais: London International Financial Futures Exchange Español: London International Financial Futures Exchange Long hedge: The purchase of a futures contract in anticipation... Credit/Mixed loan: Export credits combining concessional and market-rate financing, extended as an export promotion mechanism The loan will consist of a tranche offered on preferential terms (government