glossary on trade financing terms o p

O OAU (Organization of African Unity): An organization of African nations, primarily with political goals Franỗais: OAU Espaủol: 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 Franỗais: Obligation daccorder une couverture additionnelle Espaủol: 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 Franỗais: Connaissement maritime Espaủol: 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 to cover 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 Franỗais: Police d'assurance maritime Espaủol: Púliza de seguro marớtimo 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 formulating their economic policies See also Consensus Franỗais: Organisation de Coopộration et de Dộveloppement Economique (OCDE) Espol: Organización de Cooperación y Desarrollo Económicos (OCDE) OECD Export Credit and Credit Guarantees Group, OECD Trade Committee: A forum in which 22 OECD member countries participate in the Arrangement on Guidelines for Officially Supported Export Credits (the Consensus) Turkey and Mexico also attend the Group as 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 Franỗais: Crộdit lExport 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 Off-balance-sheet financing: Financing not shown as a liability on the company's balance sheet Franỗais: Financement hors bilan Espaủol: Financiaciún no incluida en el balance de situación, financiación complementaria Off-cover: A term used by Export credit agencies to indicate those countries considered not creditworthy, and towards which the ECA will refuse to guarantee bank loans for export financing In such cases, either the domestic bank takes the risk on the credit being extended to the offcover country, the exporter himself accepts the risk or the business transaction is called off Franỗais: Hors-couverture Espaủol: Excluido de la cobertura Offer/Offers: (1) A general term indicating the willingness to sell an asset at a given price An offer may, for instance, be the price on which a loan may be based, the price at which a security is sold on the market or the conditions on which a bill is discounted Related: Bid (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 not make offers for normal short-term business Franỗais: Offres/Offres Espaủol: 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% Franỗais: Assistance de dộveloppement officielle Espaủol: 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 Franỗais: Rộserves officielles Espaủol: 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 Franỗais: Crộdits l'export officiellement soutenus Espol: Créditos de exportación concedidos apoyo oficial Offset: In general, the elimination of a position (and thus of the related risks) through an equal and opposite transaction For example, selling a security forward if you are long Franỗais: Compensation Espaủol: Compensaciún "Offset" agreements: See Countertrade Franỗais: Contrats de compensation Espaủol: Acuerdo de compensaciún Off-shore: Outside the jurisdiction of a particular country Franỗais: Offshore Espaủol: Extraterritorial Offshore Bank: 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 Franỗais: Offshore Bank Espaủol: Banco extraterritorial Off-take: The output of a given project Franỗais: Ecoulement de marchandises Espaủol: Producto Off-take agreement: An agreement between the project company and the purchaser (offtaker) of the project’s final output, specifying the terms and conditions of the purchase, including price, quantity and conditions of tenor of the agreement to purchase the off-take Franỗais: 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 Franỗais: 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 debt certificate or payment order by the creditor to the debtor Franỗais: A la demande, vue Español: A requerimiento, a la vista OPEC: See Organization of Petroleum Exporting Countries Franỗais: OPEC Espaủol: OPEC Open account: A means of payment whereby the exporter extends credit directly to the importer The goods are delivered and payment is provided for at some specified future date, without the buyer issuing any negotiable instrument evidencing his legal commitment The final payment by the buyer is via cheque or money transfer, with the bank's role being limited to moving the funds from the buyer to the seller In some cases, the open accounts receivable may be discounted with a 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 Franỗais: Compte ouvert Espaủol: 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 Franỗais: Contrat ouvert Espaủol: Contrato pendiente Open-market operations: A Central Bank’s dealings in the domestic money market or securities market, aimed at adjusting and controlling the credits and money supply in the economy Franỗais: Opộrations sur le marché public, opérations d'"open market" Español: Transacciones de mercado libre Open (insurance) Policy: See Ocean Marine Insurance Policy Franỗais: Police d'assurance ouverte Espol: Póliza flotante, póliza abierta Open Tender: An invitation to bid, open to all suppliers willing to submit offers See Restricted tender Franỗais: Soumission ouverte Espaủol: Licitaciún pública Operating risk: The inherent risk of a firm, also known as business risk Franỗais: Risque d'exploitation Espaủol: 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 to external or internal attacks on their systems or products, as well as customer misuse and inadequately designed or implemented electronic banking and electronic money systems Franỗais: Risque opộrationnel Espaủol: Riesgo operacional Operator: Within a project, the party responsible for the project’s operation and maintenance Franỗais: Opộrateur Espaủol: 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 Franỗais: Coỷt d'opportunitộ du capital Espaủol: Costo de oportunidad del capital, costo de opción 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 a means of cover against risk (for instance, exchange rate fluctuations) See also Seller of an Option, Call option, Put option Franỗais: Option Espaủol: Opciún 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 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 Franỗais: Instrument d'ordre Espaủol: 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 Franỗais: Action ordinaire Español: Ordinary share (UK) Organization for Economic Cooperation and Development: See OECD Franỗais: Organisation de Coopộration et de Développement Economique Espol: Organización de Cooperación y Desarrollo Económicos (OCDE) Organization of African Unity: See OAU Franỗais: Organisation de lUnitộ Africaine Espol: 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 Franỗais: Organisation des Pays Producteurs de Pétrole (OPEC) Espol: Organización de Pses Exportadores de Petróleo (OPEP) Outsourcing: When a domestic company uses foreign suppliers for components or finished products Franỗais: Approvisionnement extộrieur Espol: Contratación de terceros Overdraft: 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 an overdraft, 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 Franỗais: Découvert Español: Descubierto Overdraw: To draw in excess of the deposit balance or credit limit given by the bank Franỗais: Tirer découvert Español: Girar en descubierto Overdue bill; dishonoured bill: A bill of exchange which was not paid at maturity Franỗais: Effet dỷ, effet exigible, effet non honorộ, effet en souffrance Español: Letra vencida Overseas investment finance: Designed to cover the requirements of local firms establishing jointventures abroad, to enable them to finance their contribution to the equity of the joint-venture Franỗais: Financement de l'investissement d'outre-mer Espaủol: Financiaciún 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 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 Franỗais: Payable l'avance Espaủol: 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 Franỗais: Payable 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 Franỗais: Mộthode de remboursement Espaủol: Mộtodo de reembolso, método de amortización Payee: The person or company to whom a draft, bill, cheque or other negotiable instrument is made payable Franỗais: Bộnộficiaire Espaủol: Beneficiario (del pago) P/E ratio: Price/earnings ratio Franỗais: Rapport, ratio: Prix/Bộnộfice Espaủol: Relaciún precio-beneficio (por acción) (PB), relación entre cotización y precio (PER) Peg: To fix the value of a currency to a benchmark, such as another currency or the value of gold Franỗais: Peg Español: Peg Performance bond: A bond provided by the bank or the insurer of a supplier to assure the buyer that the supplier will perform as agreed, i.e fulfil his obligations within the terms and conditions agreed upon in the contract The bond will compensate the buyer should the supplier fail to perform It is usually issued to cover 10% of the contract value Franỗais: Garantie de bonne exộcution Espol: Fianza de cumplimiento, aval de cumplimiento, fianza de ejecución Performance Bond Coverage: An insurance or guarantee protecting the supplier, or the issuing bank or insurer, from the unjustified or arbitrary calling of a Performance Bond by the buyer Franỗais: Couverture de garantie de bonne exécution Español: Cobertura de la fianza de cumplimiento Performance Letter of Credit: A type of letter of credit issued by a bank, promising the buyer/importer that he will be compensated in the event of a specifically defined default by the seller/exporter in the performance of an obligation It is frequently used in place of a Performance Bond Franỗais: Lettre de crộdit de bonne d'exộcution Espaủol: Carta de crédito de cumplimiento Permanent financing: Financing which is put in place to replace a short-term loan or a contractor/construction loan Franỗais: Financement permanent Espaủol: Financiaciún permanente Perpetuity: "without an end" For instance, a perpetual warrant indicates a warrant which has no expiry date Franỗais: Perpộtuitộ Espaủol: Renta perpetua PIBOR (Paris Inter-Bank Offered Rate): This is the interbank rate practiced in Paris on short-term loans (one to twelve months), through which first-class banks lend and borrow funds Franỗais: Taux interbancaire offert Paris Español: PIBOR, tipo de interés interbancario en el mercado de capitales de París Place of performance: The place where the debtor is to fulfil his obligation to pay Franỗais: Place d'exộcution Espaủol: Lugar de ejecuciún Plain vanilla: A term referring to relatively simple derivative financial instruments, such a swap or other derivative issued with standard features Opposite of Exotic Franỗais: Plain vanilla Espaủol: Clỏsico Pledge: The transfer of an asset to secure the payment of an obligation, but without transfer of title or ownership In case of default, the creditor can acquire the pledged asset as repayment In banking, the pledging of securities is among the most common forms of credit collateralizing transactions, especially in the case of overdrafts and loans See also Lombard (Collateral) loans Franỗais: Nantissement Espaủol: Prenda, pignoraciún, garantớa, fianza Pledged collateral: Assets of value, such as securities, merchandise, etc., deposited and pledged as security for the repayment of a loan Franỗais: Gage nanti Espol: Garantía en prenda Political Risk: The risk of loss due to default on export credits arising from political causes, such as currency non-convertibility, expropriation of the obligor, government interference, war or revolution, etc Franỗais: Risque politique Espaủol: Riesgo político Political-Risk-Only coverage: A guarantee/insurance policy providing cover against losses arising from political risks Franỗais: Couverture uniquement du risque politique Espol: Cobertura de riesgos políticos Portfolio: A general term indicating a collection of investments, such as real estate or financial instruments Franỗais: Portefeuille Espaủol: Cartera Portfolio investment: Any foreign investment which is not a foreign direct investment Foreign portfolio investments include assets such as voting securities (stocks) in a foreign company (provided these remain below 10% of the total value of the company’s shares), foreign bonds, provision of trade finance, government lending, etc Franỗais: Investissement de portefeuille Espaủol: Inversiún de cartera Position: (1) The balance shown by an account (2) The commitment undertaken by an investor on the foreign exchange or securities markets, i.e the number of contracts bought or sold for which no offsetting transaction has been concluded See Long position and Short position Franỗais: Position Espaủol: Posiciún Postage paid: A pricing term meaning that the seller has paid the mailing charges Franỗais: Frais postaux payộs Espaủol: Franqueo concertado Post shipment financing: Credit covering the company’s financial needs for the period following the shipment, to ensure sufficient liquidity until the shipped products have reached the purchaser and payment has been received Post-shipment financing is generally of a short-term nature (less than twelve months) Compare with Pre-shipment financing Franỗais: Financement après expédition Espol: Financiación posterior a la expedición Post- shipment risk: The risk of loss due to events occurring after the shipment of the goods Franỗais: Risque aprốs expộdition Espaủol: Riesgo de posterior a la expedición Precautionary motive: The holding of cash to be able to deal with unexpected events which would require a cash outlay Franỗais: Motif de prộcaution Espaủol: Motivo precauciún Pre-commissioning interest: See Interest during construction Franỗais: Intérêt antérieur la mise en exploitation Español: Pre-commissioning interest Preferences: Trade advantages (such as tariff preferences) given by a country to some of its trading partners in order to promote their export growth and the development of mutual trade relations Trade preferences are often granted to developing countries (as within the framework of the Lomé Convention) to foster their export sector and economic development prospects Franỗais: Prộfộrences Espaủol: Preferencias Preference share (UK); Preferred stock (USA): A share with preference rights, i.e which has preference over ordinary shares of the same company with regard to dividend payments and the distribution of assets on liquidation The full dividend must be paid on preferred shares before any dividend can be paid on the companys other shares Franỗais: Actions privilộgiộes Espaủol: Acciún preferente Premium: (1) In insurance, the amount paid (usually in advance) by the insured to the insurer in return for coverage against specified risks It may therefore be seen as the price of an insurance policy and, as such, is a key source of income for export credit agencies (2) In foreign exchange, the difference between a currency’s spot and forward rate in the forward market When the domestic currency is quoted on a direct basis, the foreign currency will be selling at a premium when its forward rate exceeds the spot rate (3) In the bond market, the amount paid above the bonds par value Franỗais: Prime Espaủol: Prima Premium deal: A type of forward or option deal in which the buyer or the seller may withdraw from concluding the transaction by paying a premium agreed upon in advance Franỗais: Opération prime Espol: Operación prima Pre-qualification of bidders: The selection of potential suppliers to whom the tender notices for proposed purchases may be sent Such selection is often made through a questionnaire, and on the basis of factors such as technical and financial ability, reputation and reliability See also Restricted tender Franỗais: Prộqualification des enchộrisseurs Espaủol: Precalificaciún de proponentes, precalificación de licitantes, precalificación de concursantes, precalificación de postores Present value: The future net cash inflows expected from an asset or a planned project, discounted to reflect the present value of the asset or project Franỗais: Valeur actuelle Espaủol: Valor actual Pre-shipment financing: Financing advanced to the exporter to support the costs of activities undertaken prior to shipment of the goods (i.e purchase of inputs and components, payment of salaries, wages and overheads etc.) and to provide him with additional working capital Pre-shipment financing may take the form of a short-term loan, an overdraft, a cash credit, etc Franỗais: Financement de pré-livraison Espol: Financiación previa a la expedición Pre-shipment risk: The risk of incurring a loss during the period between the date of signature of the contract and shipment Such a loss may be due to the cost of inputs, general overheads and set-up costs, which may be particularly high if the manufacturing period is long Insurance or guarantee cover and/or financing are sometimes available to meet the exporter's needs during this period Franỗais: Risque de prộ-expộdition Espaủol: Riesgo previo a la expedición Price/book ratio: A ratio which compares the market value of a company’s shares to the company’s net book value, i.e the book value of total assets less total liabilities It is calculated by dividing the market value of the share by the ordinary shareholder equity per share (book value) Franỗais: Prix/valeur comptable Espaủol: Relaciún entre el precio y el valor contable Price/cash flow ratio: The ratio between the current market price of a company’s share and its cash flow The cash flow reports the actual movements of funds into and out of a company's accounts The price of the share is divided by the cash flow per share (total cash flow during the past twelve months divided by the number of outstanding shares) Franỗais: Prix/flux de trésorerie Espol: Relación precio-flujo de caja Price/earnings ratio (P/E): The ratio compares a company's share market value to net profit (i.e after tax profit) It is calculated by dividing the current market price of the share by the earnings per share of that company A high P/E implies that investors are buying expensive shares compared with the present earnings flow of the company P/E is a useful indicator for the evaluation of share prices Franỗais: Rapport, ratio: Prix/Bộnộfice Espaủol: Relaciún precio-beneficio (por acción) (PB), relación entre cotización y precio (PER) Price/sales ratio: The ratio is determined by dividing the current share price by the revenue per share The latter is calculated by dividing the revenue for the past twelve months by the number of outstanding shares Franỗais: Rapport Prix/Ventes Espaủol: Relación precio-ventas Price elasticity: The percentage change in the quantity (demanded/offered) of an asset divided by the percentage change in the price of such asset Franỗais: Elasticitộ du prix Espaủol: Elasticidad-precio, elasticidad respecto a los precios Primary market: A market for newly issued securities See also Secondary market Franỗais: Marché primaire Español: Mercado primario (de valores) Prime rate: The interest rate charged by banks to their first-class (prime) borrowers, usually referring to short-term commercial loans See also Market discount rate Franỗais: Taux pour les dộbiteurs de 1er ordre Espaủol: Tipo preferencial (de interés bancario) Principal: (1) In lending, the total amount of money being borrowed or lent, on which interest payments are calculated (2) In a principal-agent relationship, the party giving instructions to the agent Franỗais: Principal Espaủol: Principal Principal-agent relationship: A situation whereby one person, the agent, acts on the behalf of another person, the principal Franỗais: Relation Commettant-agent Espol: Relación entre el mandante y el corredor Private discount rate: See Market discount rate Franỗais: Taux d'escompte privộ Español: Private discount rate Private placement: A situation when bonds or other securities are sold directly to a limited number of investors Franỗais: Placement privộ Espaủol: Colocaciún privada Profit and loss statement (UK); Income statement (USA): A document reporting all expenses (costs) and income items (revenues) of a company during a given period (usually a calendar year), showing its overall profit and loss, how much has been paid out in dividends and how much has been retained It complements the company’s balance sheet, which reports the company’s assets and liabilities Franỗais: Compte de pertes et profits Espaủol: Estado de pộrdidas y ganancias Pro forma invoice: The first draft of the exporter's bill, provided to the importer prior to shipment of the merchandise, informing him of the kind and quantity of goods to be sent, their estimated price and other characteristics (weight, size, etc.) On the basis of this information, the importer will decide whether he wants to confirm an order or not Franỗais: Facture pro-forma Espaủol: Factura pro forma Pro forma statement: An unaudited financial statement prepared at a date not coinciding with the fiscal year's regular reporting A company may thus draw up a pro forma profit and loss statement, balance sheet and cash flow statement Franỗais: Relevộ pro-forma Espol: Declaración pro forma Progress payment: Payments due from the buyer to the supplier during the contractual period, which may be financed under a buyer or supplier credit Franỗais: Paiement d'avancement Español: Pagos a cuenta, pagos parciales Project financing: A term indicating the sources and techniques for the financing of major capital projects Such financing is typically extended on the basis of the project’s expected cash flow rather than on guarantees from third parties Franỗais: Financement de projet Espaủol: Financiaciún de proyectos Prolongation: The extension of the maturity, running period or due date of a transaction or an order, for example the postponement of the due date of a bill Also called renewal Franỗais: Prolongation Espaủol: Prolongaciún, posposiciún Promissory note: An unconditional written promise issued and signed by the debtor, to pay on demand, or at on a specified date, a stated amount of money to the order of a specified person or to the note’s bearer Promissory notes are transferred by endorsement Franỗais: Billet ordre Espaủol: Pagarộ, reconocimiento de deuda, pagaré a la orden Prospectus: A formal document containing information about the borrower and the terms and conditions of the intended securities’ issue It describes the borrower's current situation, business plan and other information required by investors to make an informed investment decision Prospectuses are also issued by Mutual funds to describe the fund objectives, risks and other information Franỗais: Prospectus Espaủol: Prospecto Protectionism: A restrictive trade policy aimed at discouraging imports (by means of tariffs, quotas and other barriers) in order to artificially help domestic producers competing with foreign suppliers Franỗais: Protectionnisme Espaủol: Proteccionismo Protracted default: Usually defined by Export credit agencies as a payment not received six months or longer after its date of maturity Franỗais: Dộfaut Espaủol: Incumplimiento prolongado Provide cover: To provide security (collateral) for an unsecured debt Franỗais: Accorder la couverture Espaủol: Hacer provisión Provisioning: An allowance made in the accounts of some export credit agencies for potential losses on their exposure Some agencies make provision on all new business Some refuse to make provisioning for political risk, considering that sovereign debts will, ultimately, be repaid Franỗais: Provisionner Espaủol: Provisiún de fondos, constituciún de reservas Public issue: See Public offering Franỗais: Emission publique Español: Oferta pública Public offering: The sale of registered securities by the issuer (or the underwriter acting on his behalf) on the public market Also called public issue Franỗais: Offre publique Espol: Oferta pública, colocación pública Pull: A promotion method whereby goods and services are pre-sold to consumers, i.e sold even before consumers reach the point of purchase, usually by relying on mass media Compare with Push Franỗais: Pull Espol: Vender antelación Purchasing Power Parity (PPP): This is a technique for comparing standards of living in different countries It states that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies Franỗais: Paritộ des pouvoirs d'achat Espaủol: Paridad de poder adquisitivo Pure cover: A trade financing arrangement providing for coverage of the risk under a credit insurance or bank guarantee contract not accompanied by the corresponding funding See Consensus Franỗais: Couverture pure Espaủol: Cobertura pura Push: A promotion method which involves direct selling techniques Franỗais: Push Espaủol: Venta directa Put option: An option which gives the buyer the right, though not the obligation, to sell a specified number of securities (currency or commodities) at a stated strike price within a fixed period of time If the strike price is higher than the spotmarket price, the holder will buy the securities spot, and exercise the option, i.e resell the securities at a profit (the difference between the strike and spot market price) Compare with Call option Franỗais: Option de vente Espol: Opción de venta (de acciones) Pyramid scheme: An illegal and fraudulent scheme in which a person or institution persuades victims to invest in the scheme by promising extraordinary returns In reality such returns simply consist in the distribution of resources contributed by new investors, rather than being generated by genuinely productive investments Franỗais: Plan pyramidal Espaủol: Rộgimen piramidal ... formulating their economic policies See also Consensus Franỗais: Organisation de Coopération et de Développement Economique (OCDE) Espol: Organización de Cooperación y Desarrollo Económicos (OCDE)... Franỗais: Prolongation Espaủol: Prolongaciún, posposiciún Promissory note: An unconditional written promise issued and signed by the debtor, to pay on demand, or at on a specified date, a stated amount... Development: See OECD Franỗais: Organisation de Coopộration et de Développement Economique Espol: Organización de Cooperación y Desarrollo Econúmicos (OCDE) Organization of African Unity: See OAU