glossary on trade financing terms s

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which pay interest, generally at below-market interest rates They not have a specific maturity and may usually be withdrawn upon demand Franỗais: Dộpụts d'ộpargne Espaủol: Depúsito (en caja) de ahorro Script certificate: (1) A written obligation by the bank, acting as paying agent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