glossary on trade financing terms q r

Q Quantity controls: A quantitative restriction imposed by the government, for example a limitation on the amount of foreign currency which can be used in a specific transaction Franỗais: Contrụles de quantité Español: Control cuantitativo Quantitative limits: In credit insurance, the limits set by export credit agencies on the amount of cover offered to a particular country Such limits are an important means of limiting exposure to risky countries Franỗais: Limites quantitatives Espol: Límite cuantitativo Quick ratio: A measure of a company's liquidity and of its ability to pay off short-term obligations without having to sell relatively illiquid assets The ratio compares the company's cash plus accounts receivable (quick assets) to its current liabilities A ratio of 1:1 (one to one) is considered desirable See also Acid test Franỗais: Ratio de liquidité, Rapport de liquidité Español: Prueba ácida Quota: (1) An instrument of trade control, consisting of limiting the amount of a product allowed for import to or export from a country without restriction or the imposition of additional duties (2) Each member country of the IMF holds a quota, expressed in Special Drawing Rights, which determines its voting and borrowing powers within the institution Franỗais: Quota Espaủol: Contingente, cuota Quotation: An offer to sell goods at a stated price and under specified conditions See also Bid Franỗais: Cotation Espaủol: Oferta Quoted companies: Companies whose shares are listed on the official Stock Exchange Franỗais: Sociộtộs cotộes Espaủol: Empresa cotizada en bolsa Quoted currency: An exchange rate is usually quoted by relating one currency to the other The currency whose numerical value is "one" is the base currency, while the other is the quoted currency e.g if the exchange rate between the pound and dollar was quoted at £1 = $1.40, the pound would be the base currency and the dollar the quoted currency See also Direct and Indirect quote Franỗais: Monnaie cotée Español: Divisa cotizada R Rate: The cost of money, either to borrow or to lend (interest rate) or to exchange for another currency (exchange rate) Franỗais: Taux Espaủol: Tipo, tasa, índice Rate for advances against collateral; Lombard rate: (1) The interest rate for Lombard loans granted by the Central Bank to the commercial banks, against the pledging of securities eligible for discounting (Official Lombard rate) (2) The interest rate applied by the commercial banks to Lombard (collateral) loans granted to their clients Franỗais: Taux pour des avances garanties, taux avec collatéral, taux lombard Español: Tasa de préstamos garantía prendaria; Tasa Lombard Rate of return: A ratio calculated as the current value of an asset minus its value at the time of purchase, divided by its value at the time of purchase In the case of equities, dividends may be included in the current value Franỗais: Taux de rendement Español: Tasa de rendimiento, tasa de rentabilidad Rating: The credit assessment of an individual, or a firm, used particularly in connection with the issue of securities by corporate borrowers Franỗais: Notation Espaủol: Clasificaciún Rating agencies: Agencies specialised in the analysis of the financial status of a company, and in the subsequent assignment of a quality (credit) rating The most important rating agencies include Standard and Poors and Moody's Rating is also practised in relation to countries, and provides useful information to investors on the quality of bonds issued by the local government Franỗais: Agences de notation Espaủol: Agencia de calificación crediticia, agencia de calificación de valores, organismo de clasificación de valores Real assets: Identifiable (although not necessarily tangible) assets, such as buildings, equipment, patents and trademarks, as opposed to financial assets Franỗais: Actifs rộels Espaủol: Bienes raớces, bienes inmuebles, activo real Real exchange rate: The exchange rate adjusted for the inflation differential between the two countries Franỗais: Taux de change réel Español: Tipo de cambio real Real Income per Capita: This measures real GNP (deducting inflation) per head If real GNP increases faster than population growth, this should lead to a higher standard of living, although in reality this will depend upon income distribution Franỗais: Revenu rộel par tờte d'habitant Español: Renta real por habitante, ingreso real per capita Real value: As opposed to nominal value, a real value takes into consideration inflation (i.e deducts the effects of inflation) Franỗais: Valeur rộelle Espaủol: Valor real Rebate Rate: The discount made on the bill of Exchange or draft if it is paid before the due time Franỗais: Taux de rabais Español: Tasa de descuento Receivables; Debtors (UK): A general term for what is due and collectable, i.e the total amounts due on goods sold, services rendered or money loaned and yet to be received Also known as Account receivables Franỗais: Débiteurs Español: Receivables, debtors (UK) Recession: A general decline in the level of economic activity and growth at country, region or world level It is generally associated with an increase in unemployment and a decline in the rate of inflation Franỗais: Rộcession Espaủol: Recesiún, contracciún econúmica Reciprocity: The reduction of a country's tariffs or other trade restraints in return for comparable trade concessions by another country Franỗais: Rộciprocitộ Espaủol: Reciprocidad Recourse: The right of a person, bank or Export credit agency to whom a note or other obligation has been endorsed, to demand payment from the endorser of the note, if the original borrower fails to pay Franỗais: Recours Espaủol: Recurso, acción Recoveries: Repayments made to agencies or banks by borrowing countries, relating to the claims paid out by agencies to exporters, or loans granted by banks Franỗais: Recouvrements Espaủol: Recuperaciones Recycling: In finance, this refers to the transfer of funds from units with a financial surplus to those with a deficit When this transfer occurs through financial intermediaries, it is referred to as intermediation Franỗais: Recyclage Espaủol: Reciclaje Red Clause: A clause (originally typed in red) added to a letter of credit authorizing the advising/negotiating bank to make an advance payment to the beneficiary (exporter) before the actual shipment to the buyer The advance may be up to 100% of the export contract value and may be used by the exporter to buy the inputs for manufacturing or shipment Red clause credits are used primarily when the buyer (importer) has a agent in the exporting country To finance its purchases, the importer may arrange for the opening of a red clause letter of credit Negotiations of red clause credits are limited to the bank making the advances in order to assure that revenues from the shipment are used to repay the advances made Franỗais: "Clause rouge" Espaủol: Carta de crédito cláusula roja Redeemable shares: Shares which may be bought back by the company which originally issued them Franỗais: Actions rachetables Espol: Acción amortizable Redemption: Cancellation of a security, either by cash payment or exchange against another security Redemption may be mandatory on a specified date, at the option of the borrower after a certain date or conditional upon certain defined events (such as a change in the tax law which might jeopardise the borrower's position) Franỗais: Remboursement/amortissement Espaủol: Rescate Rediscount: To sell or discount a negotiable instrument which has already been discounted once Franỗais: Rộ-escompte Espaủol: Redescuento Refinance: (1) Paying off existing debts with new (and cheaper) loans (2) Funding provided by an ECA to a commercial bank to assure liquidity and to enable it to finance export transactions The bank may be required to provide collateral for the funding Franỗais: Refinancement Espaủol: Refinanciaciún, refinanciamiento Registered bond: A bond whose owner is registered with the issuer, as opposed to a bearer bond Franỗais: Obligation nominative Espaủol: Bono nominativo, obligación nominativa Regress: Recourse by the holders of bills, drafts and cheques against previous holders, endorsers or issuers etc Franỗais: Recours Español: Regreso Reimbursable: This denotes an arrangement whereby the contractor is reimbursed by the client for the cost of goods and services purchased for implementation of the contract Franỗais: Remboursable Español: Reembolsable Reinsurance: A means of sharing risk in the insurance business Typically, the amount originally insured (usually by a private sector insurer) is totally or partially reinsured by an official (government) insurance agency The private insurer might wish to keep the commercial component of the risk on its own books, while seeking reinsurance against political risks Some large official agencies also provide reinsurance for smaller official agencies Franỗais: Réassurance Español: Reaseguro Re-lending: Funding provided by an ECA to a commercial bank in support of the credits extended by the latter (generally for buyer's credit only) Re-lending does not usually require the pledging of collateral Franỗais: Re-prờter Espaủol: Reciclaje de préstamos Remittance: A sum of money transferred from one party to another, either by cash or a negotiable instrument, usually as payment for the purchase of goods or services Franỗais: Remise Espaủol: Remesas Remitting Bank: The bank instructed to handle collections, which in turn instructs the collecting bank Franỗais: Remitting Bank Español: Banco remitente Renewal: In banking, the extension of a credit agreement, whereby the old credit arrangement is replaced by the establishment of a new one Franỗais: Renouvellement Espol: Renovación Repayment period; credit period: The period during which repayments of a credit are due to be made In a commercial contract, this usually starts on completion of the contract Franỗais: Pộriode de remboursement Espaủol: Perớodo de reembolso Repo: Also known as repurchase agreement, this is an agreement by which one party sells a security to another party and agrees to repurchase it on a specified date at a specified price Franỗais: Contrat de rachat Espaủol: Acuerdo de recompra Rescheduling: See Debt Rescheduling Franỗais: Rộ-ộchelonnement Espaủol: Rescheduling Reserve for bad debts: A reserve set aside in the books of a business or a bank to provide for unexpected bad debt losses which may occur in the current or following years Also known as provision for doubtful accounts Franỗais: Rộserve pour dettes douteuses Español: Reserva para deudas incobrables Reserve currency: Currencies held by Central Banks as foreign reserves These currencies are universally accepted in international debt settlement and are fully convertible Franỗais: Monnaie de rộserve Espaủol: Divisa de reserva, moneda de reserva Reserves: A general accounting term denoting an amount of money set aside from profits (and not distributed to shareholders as dividends) which is transferred into a special liability account to meet unexpected future expenditure or loss Franỗais: Rộserves Español: Reservas Reserve ratio: A requirement by a country’s monetary authorities for commercial banks to set aside a specified percentage of their deposits, to meet unforeseen eventualities Franỗais: Ratio de réserve Español: Coeficiente de reservas Residual or residual (value): In leasing, the value of equipment at the end of the term of lease Franỗais: Rộsiduel ou valeur rộsiduelle Espaủol: Valor residual, valor de recuperación Residual insurance: An insurance policy stipulating that equipment will have a certain residual value after a period of time Franỗais: Assurance rộsiduelle Espaủol: Seguro residual Residual Risk: The proportion of an export credit which is not insured/guaranteed by an export credit agency Franỗais: Risque rộsiduel Espaủol: Riesgo residual Restricted Tender: An invitation to Bid addressed only to certain pre-qualified suppliers See also Open Tender; Pre-qualification of Bidders Franỗais: Soumission limitộe Espaủol: Licitaciún selectiva Retained earnings; Retained profit: The earnings of preceding year(s), not yet paid out as dividends, which the firm has retained for reinvestment in its operations Franỗais: Bộnộfices non-distribuộs Espaủol: Beneficios no distribuidos, utilidades no distribuidas Retention: (1) In dividend payments, the company’s practice of holding back or retaining current earnings; (2) In a supply contract, the sums retained by the buyer which are gradually extended to the supplier as he fulfils his contractual obligations Franỗais: Rộtention Espaủol: Retenciún Return On Assets (ROA): An indicator of profitability, calculated as net profits after tax divided by the company’s total assets The ratio helps a firm examine how effectively it uses its available assets i.e its ability to generate profits from available assets Franỗais: Rentabilitộ des actifs Español: Rendimiento de los activos Return On Equity (ROE): An indicator of profitability, calculated as net profits after tax divided by ordinary shareholders' equity Investors use ROE as a measure of how efficiently a company is using the money they have provided Franỗais: Rentabilitộ des fonds propres Espaủol: Rendimiento del capital Return on investment (ROI): A ratio which is calculated as net profits after tax divided by investment Franỗais: Rentabilité de l'investissement Español: Rendimiento de las inversiones Revaluation: (1) The upward revision in the value of a company's assets; (2) The upward movement of an exchange rate which is pegged to other currencies or gold, by a formal and official action of the countrys monetary authorities Opposite: Devaluation Franỗais: Réévaluation Espol: Revalorización, revaloración Revocable letter of credit: See Letter of credit Franỗais: Lettre de crộdit rộvocable Espaủol: Carta de crédito revocable Revolving credit: A credit which can be automatically renewed without additional negotiation with the bank It is available up to a specified amount which remains constant during a given period of time, such that whenever it is drawn upon, it becomes available again for its full amount The lender is legally committed to make available to the borrower the funds agreed upon, while the client can withdraw funds according to his needs A revolving credit may be granted for short-term credits (less than one year), but also for medium term financing (up to three years) The borrower must pay a commitment fee for the unused amount of the credit facility (usually around 0.5%), in addition to the interest rate charges on the borrowed funds (about 0.5% above the short-term rate) Compare with Overdraft Franỗais: Crộdit revolving (renouvelable) Espaủol: Crédito rotatorio, crédito renovable Revolving Letter of credit: See letter of credit Franỗais: Lettre de crộdit revolving (renouvelable) Espaủol: Carta de crédito rotatoria Risk averse: A person who prefers investments characterised by low levels of risk Opposite of Risk taker Franỗais: Rộpugnance au risque Espaủol: Agente econúmico que rehuye el riesgo Risk Lay off: The shifting of all or part of the commercial or political risk to an ECA, commercial bank or both Franỗais: Dộplacement de risque Espaủol: Traspaso de riesgos Risk taker: A person hoping to gain high expected returns on investments in return for taking on higher amounts of risk Opposite of Risk averse Franỗais: Preneur de risque Espol: Agente económico dispuesto a aceptar riesgos Risk Retention: The portion of the invoice value or portion financed by a bank, not covered by the guarantee/insurance, which is retained for the account of the exporter and/or the commercial bank The exporter's risk retention may sometimes be purchased by the bank without recourse Franỗais: Rộtention de risque Espaủol: Retenciún del riesgo Roll over: A financial technique whereby funds received from a maturing security are reinvested in a new issue of a similar security Franỗais: Roll over Espaủol: Renovaciún Roll-over credit: A medium to long-term loan which is periodically re-priced at a predetermined interest rate spread over the reference interest rate Most medium-long term loans on the Euromarket are on a roll-over basis, where the interest rate is usually reset every three, six or twelve months and the basis for the periodic interest rate adjustment is the current London Interbank Offered rate (LIBOR) Franỗais: Crộdit "roll-over" Espaủol: Crộdito de refinanciaciún Royalties: The payments made for the use of a patent Franỗais: Droits d'auteur Espol: Regalías, derechos de patente Rules of origin: Rules which set the criteria for determining the "economic nationality" of a product They serve as a differentiating mechanism to determine whether a particular discriminatory trade arrangement, providing for either preferential or detrimental treatment, will be applied to a given product Franỗais: Rốgle d'origine Espaủol: Normas de origen ... econúmica Reciprocity: The reduction of a country's tariffs or other trade restraints in return for comparable trade concessions by another country Franỗais: R ciprocitộ Español: Reciprocidad Recourse:... for buyer's credit only) Re-lending does not usually require the pledging of collateral Franỗais: Re-prờter Español: Reciclaje de préstamos Remittance: A sum of money transferred from one party... nominativa Regress: Recourse by the holders of bills, drafts and cheques against previous holders, endorsers or issuers etc Franỗais: Recours Espaủol: Regreso Reimbursable: This denotes an arrangement