glossary on trade financing terms t u v w x y z

T Take-and-pay contract: A contractual term indicating that the buyer is required to take and pay for goods or services only if delivered Franỗais: Contrat du type : "Prend-et-paye" Espaủol: Contrato de compra contra entrega Take-or-pay contract: A contractual term whereby the buyer is unconditionally obligated to take any product or service that he is offered (and pay the corresponding purchase price), or to pay a specified amount if he refuses to take the product or service Franỗais: Contrat du type : "Prend-ou-paye" Español: Contrato firme de compra, contrato sin derecho de rescisión Take over: A general term referring to the transfer of control of a company from one group of shareholders to another group of shareholders Franỗais: Prise de contrơle, achat Espol: Adquisición, absorción Tare weight: The weight of a container and/or the packing materials holding the shipped merchandise Compare with Gross weight Franỗais: Poids vide Espaủol: Tara Tariff: A tax imposed by a government on goods as they enter (or leave) the country It may be imposed for Protectionist reasons and/or to generate revenues for the government Tariff types include ad valorem, specific, variable or some combination of these See also duty Franỗais: Tarif Espaủol: Arancel Tariff anomaly: A term indicating a situation where a tariff applied on raw materials or semi-manufactured goods is higher than the corresponding tariff on finished products Franỗais: Tarif anormal Espaủol: Anomalớa arancelaria Tariff escalation: A situation where tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate and tariffs on raw materials are low or non-existent Franỗais: Tarif par paliers croissants Espol: Progresión arancelaria Tariff preferences: See Preferences Franỗais: Tarifs prộfộrentiels Espaủol: Tariff preferences Tariff quotas: A two tier tariff system, i.e when imports within a set quota may enter at a lower tariff rate than imports exceeding such a quota Franỗais: Tarifs par quotas Espaủol: Contingente arancelario Tariff schedule: A comprehensive list of the goods which may be imported into a country, together with the relative tariff rates applicable to each category Franỗais: Barốme de tarifs Espaủol: Arancel de aduanas Tax haven: A country with low levels of taxation (including on income from foreign sources) and/or liberal tax incentives for undertaking specific economic activities Franỗais: Paradis fiscal Espol: Parso fiscal Tax haven subsidiary: A subsidiary of a company, established in a tax haven in order to minimize the burden of taxation Franỗais: Filiale domiciliộe dans un paradis fiscal Espol: Filial en parso fiscal Tender; Bid: A general offer made by a company or a public sector agency for the purchase of specific goods and services The potential suppliers respond to the tender notice or invitation by submitting their proposals, which specify the technical, commercial and financial aspects of how they would carry out work See also Open Tender; Restricted Tender Franỗais: Soummission, offre Espaủol: Licitaciún, oferta Tender bond: Another name for a bid bond Franỗais: Tender bond Español: Tender bond Tender to contract period: The period of time ranging between the submission of a tender and the actual signature of the contract Franỗais: Pộriode comprise entre la soumission et la signature Espol: Período de licitación a contrato Tenor: The term established for the payment of a draft or a loan, i.e the draft or loan's maturity The tenor may be either (1) At sight, i.e payable upon presentation (2) Time, i.e payable at some specified future date, for example thirty days after sight or sixty days after bill of lading date Franỗais: Echộance Espaủol: Vencimiento Term bonds: Often referred to as bullet-bonds, whose principal is payable at maturity Franỗais: Obligations sans amortissement Espaủol: Term bond Term loan: A business loan with a final maturity of more than one year, payable according to a specified schedule Franỗais: Prờt terme Español: Préstamo a plazo, crédito a plazo Terms of trade: An index expressed as a ratio between the price of exports and the price of imports When the index rises the terms of trade improve, and vice versa Broadly speaking, the index measures the purchasing power of a country's exports in terms of the imports it buys (i.e the quantity of imports which can be bought with the country's export revenues Franỗais: Termes de l'ộchange Espaủol: Relaciún de intercambio Through bill of lading: A single bill of lading covering the inland transport of a cargo from the point of origin to that of final delivery to the ultimate consignee, when two or more modes of transportation are used Ocean shipments however usually require two separate documents i.e an Inland bill of lading for the domestic carriage and an Ocean bill of lading for international carriage Through bills of lading cannot, therefore, be used See also Air Waybill Franỗais: Connaissement direct Español: Conocimiento de embarque directo Tick: The minimum price fluctuation of a security or commodity, either up or down Franỗais: Tick Espaủol: Movimiento mớnimo de precios, variaciún de precio Tied aid credit: This refers to the practice of providing a grant and/or a concessional loan, either alone or combined with an export credit, which is linked to an export sale from the donor country Franỗais: Crộdit couplộ une aide Español: Crédito de ayuda condicionada, crédito de ayuda vinculada Tied loan: A loan made by a government agency whereby the foreign borrower is required to spend the related financial resources in the lender's country Franỗais: Prờt liộ Espaủol: Préstamo condicionado, empréstito de uso condicionado Time deposits; fixed term deposits: Money placed on deposit for a fixed period determined in advance, in return for relatively high interest This is indicated in the bank's balance sheet together with its fixed due date This type of deposit may not usually be transferred or withdrawn without notice If the depositor chooses to withdraw the money before the due time, he sacrifices all or part of the interest Notice of withdrawal might be waived for small withdrawals Sometimes referred to as saving deposits Related: Certificate of deposit Franỗais: Dộpụts terme, dộpụts terme fixe Espol: Depósito a plazo, depósito término Time draft: A draft calling for payment at a later period than the delivery of the goods or services Compare with Date Draft, Sight Draft Franỗais: Traite terme Espaủol: Letra de cambio a plazo Tolling contract: Another name for take-or-pay contract Franỗais: Tolling contract Espaủol: Tolling contract Trade acceptance: A draft drawn by the seller of goods on the buyer and accepted by the latter for payment at specified future date Franỗais: Acceptation commerciale Espaủol: Aceptaciún comercial Trade account: See Balance of trade Franỗais: Compte commercial Espaủol: Trade account Trade creditors (UK); Accounts payable (US): See Accounts payable Franỗais: Dettes passives / Créanciers commerciaux (GB) Español: Cuentas a pagar Trade related investment measures (TRIMs): The Agreement on TRIM's, negotiated in the Uruguay Round, recognizes that certain investment measures can restrict and distort trade It requires countries to phase out TRIM's which have been identified as being inconsistent with GATT rules The phasing out period, from January 1995, was two years for developed countries, five years for developing countries and seven years for transitional economies Franỗais: Mesures au sujet des investissements en rapport avec le commerce (TRIMs) Español: Medidas en materia de inversiones relacionadas el comercio (MIC) Traders: An individual, or a company, who takes positions on the market with the objective of making a profit, typically consisting of the Spread between the Bid and the Ask price or rate Traders can make markets by trading the flow See also Speculators Franỗais: Courtiers Espaủol: Agente Tranche: (1) A term used to refer to IMF's borrowing facilities The reserve tranche refers to the 25% of a member's quota paid in reserve assets (2) In security markets, the term indicates a part issue of securities Franỗais: Tranche Espaủol: Tramo Transfer risk: The risk that the borrower will not be able to convert local currency into foreign exchange, therefore being unable to make the due debt-service payments Such risk typically arises from currency exchange restrictions imposed by the government of the borrower's country This is a particular kind of political risk Franỗais: Risque de transfert Español: Riesgo de transferencia Transaction costs: The time, effort and expense involved in the transfer an asset from the seller to the buyer (for example, search costs, commission fees, costs of transport, etc.) Franỗais: Coỷt de transaction Espaủol: Costo de transacción Transit tariff: A tax placed on goods transiting (i.e passing through) a country Franỗais: Droit de transit Español: Arancel de tránsito Transmittal letter: A letter containing a detailed description of the shipped goods, the documents being transmitted together with instructions for the use of such documents Any special instructions are also included Franỗais: Lettre de transmission Espaủol: Carta anexada Treasury bills (T-Bills): Short-term papers issued by governments in many countries, with maturity of one year or less Franỗais: Bons du Trộsor Espaủol: Bono del Tesoro, letra del Tesoro Triangular arbitrage: The process of buying and selling an asset, commodity or foreign exchange at a profit, due to price discrepancies, where three different currencies are involved See also Arbitrage Franỗais: Arbitrage triangulaire Espaủol: Arbitraje triangular Trust receipt: A receipt for goods which are to be held in trust for the lender, who retains title to the merchandise The lender may release such goods to the buyer, who may use them for manufacturing or sales purposes, with the obligation of maintaining the goods under trust (or the proceeds from their sale) distinct from the remainder of his assets, ready for repossession by the lender Franỗais: Reỗu fiduciaire Espaủol: Recibo fiduciario Trustee: An individual or company who holds and administers a sum of money or property on behalf an individual, group or organization Franỗais: Fiduciaire Espaủol: Administrador fiduciario, fideicomisario Turn-Key: A term used in a construction contract, whereby the contractor has a contractual responsibility to build and hand over to a client a completed and tested plant, operating to specification The contractor is thus totally responsible for all activities from design through to final completion of the project Franỗais: Clộ en main Español: Llaves en mano Turnover tax: A form of indirect taxation imposed on a firm's sales revenues Franỗais: Taxe sur le chiffre d'affaires Español: Impuesto sobre el volumen de negocio, impuesto sobre la cifra de venta U Ultimate consignee: The final recipient of the shipped goods, who will use them for the designated end use Franỗais: Consignataire final Español: Destinatario final, consignatario final Underlying: The "something" (commodity, security, foreign exchange etc.) that the parties agree to exchange in a Derivative contract Franỗais: Sous-jacent Espaủol: Subyacente Underwriter: (1) In security markets, the financial institution which agrees to purchase an unsubscribed new issue of securities at an agreed price on a fixed day with a view to selling it publicly, for an underwriting fee (2) In an insurance contract, the insurer who underwrites the policy Franỗais: Syndicataire Espaủol: Suscriptor, Asegurador Unfair calling cover: An insurance cover to compensate for loss, in case of an unfair call of a Bid bond by the overseas buyer Franỗais: Appel injustifiộ la couverture Espol: Cobertura de ejecución injusta Unit of account: A benchmark against which to base the value of payments It is a specially defined unit, rather than a real payment medium, used in international payments Franỗais: Unitộ de compte Espaủol: Unidad de cuenta Unit of currency: The monetary unit of a country (e.g US dollar) or of an international monetary system (e.g ECU) Franỗais: Unitộ monộtaire Espaủol: Unidad de moneda Unitary tax: A taxation system whereby taxes are calculated on a percentage basis of a company's world-wide operations, rather than on the profits made in the area where the taxing authorities are located Franỗais: Taxe unitaire Espaủol: Impuesto unitario Unit costs: The costs per unit produced Can be used to analyse a company's performance Franỗais: Coỷts unitaires Espaủol: Costos unitarios Unsecured credit: A credit extended without the pledge of collateral, usually for a highly creditworthy borrower Opposite: Secured credit Franỗais: Crộdit non-garanti Español: Crédito al descubierto, crédito no garantizado Use-or pay contract: Another term for take-or-pay contract Franỗais: Contrat du type "Utilisez-ou-payez" Español: Use-or pay contract Usuance; Usuance draft: The same as tenor Franỗais: Usuance; Usuance draft Espaủol: Usuance; usuance draft V Validated Export License: A document issued by government authorities to allow the export of commodities for which written authorization is required by law Compare with General Export License Franỗais: Licence d'export validée Espol: Licencia de exportación validada Validity date: The date on which a bond or guarantee expires Franỗais: Date de validité Español: Fecha de validez Value added tax: A method of indirect taxation whereby the tax is assessed and levied on the increase of the value of the goods as they pass from the raw material through to the final product stage If the production process is split between different firms, each is taxed only on the value added to the product during the part of the production stage it is undertaking Franỗais: Taxe sur la valeur ajoutộe Español: Impuesto sobre el valor añadido, IVA Value date: The date on which traded funds are actually delivered to the beneficiary, i.e received by his bank, credited to his account and made available for withdrawal Interest accrues with effect from the value date In the case of a spottransaction, the value date is usually two days after the transaction has been agreed upon In forward trade it corresponds to the future date indicated in the forward contract Franỗais: Date de valeur Español: Fecha de valor Vanilla issue: An issue of securities which has no unusual features Franỗais: Emission du type "Vanille" Español: Vanilla issue Variable interest rate: An interest rate, for instance on a loan or a bond issue, which fluctuates during the life of the loan or bond issue This fluctuation is usually based on a benchmark interest rate, such as the Prime Rate or LIBOR in the case of international credit Franỗais: Taux d'intộrờt variable Espaủol: Tipo de interés variable Variable levy: A Tariff which increases or decreases in response to changes in world prices of imported goods in such a way that the import price after payment of the duty remains constant (i.e the level of Protection remains the same.) Franỗais: Prộlốvement variable Espaủol: Gravamen variable, impuesto variable Variable price security: A security, such as a share or a bond, which sells at a fluctuating, market-determined price Franỗais: Titre prix variable Espaủol: Tớtulo de precio variable Variable-rate loan: A loan extended at an interest rate charge which fluctuates with the Prime Rate or LIBOR or other benchmark rate Franỗais: Prờt taux variable Espaủol: Prộstamo a tasa variable Vehicle currency: A currency which is extensively used by traders and bankers in international trade transactions, i.e used as an international medium of exchange (such as the dollar) Vehicle currencies are sometimes referred to as trading currencies Franỗais: Véhicule monétaire Espol: Moneda vehículo Venture capital: An investment in a start-up business, which is perceived to have excellent growth prospects but whose high level of risk limits its access to the Capital markets This is typical of financing extended to new companies seeking to grow rapidly Franỗais: Capital-risque Espaủol: Capital (de) riesgo Vertical export trading company: An export trading company which integrates (i.e undertakes internally) the different stages of the production process, from taking products from suppliers to selling them to final consumers Franỗais: Sociộtộ de nộgoce spộcialisộe en exportations et de type vertical Español: Sociedad exportadora vertical Vertical integration: A firm’s acquisition of the control of the different stages of the production process, from the earliest processing of raw materials to the distribution of the final products Franỗais: Intégration verticale Espol: Integración vertical Voluntary export restraint: An informal (and under GATT rules illegal) understanding between nations in which the exporting country, in order to reduce trade friction, voluntarily agrees (although usually under pressure from the importing country) to limit its exports of particular goods to a specific importing country These arrangements not involve any obligation by the importing country to provide "compensation" to the exporting country, as would be the case if the importing country unilaterally imposed equivalent restraints on imports Also called a Voluntary restraint agreement Franỗais: Restriction d'exportation volontaire Espaủol: Limitaciún voluntaria de las exportaciones, LVE Vostro account: Within a domestic bank, this is an account held by a foreign bank of which the former is either the holder or in which it has an interest Also known as loro account Opposite: Nostro account Franỗais: Compte Vostro Español: Cuenta vostro Virgin bond: See Back bond Franỗais: Obligation vierge Espaủol: Bono garantizado Virtual bank: This is a bank which exists only on the Internet A virtual bank does not have any physical "bricks-and-mortar" branches Franỗais: Banque virtuelle Espaủol: Banco virtual W W.A: See With average Franỗais: W.A Español: W.A Warehouse receipt: A document issued by a warehouse listing the goods deposited in the storage site and signifying ownership of the listed goods Warehouse receipts may be Negotiable (to Bearer) or non-negotiable Franỗais: Rộcộpissộ d'entreposage Espaủol: Recibo de almacenamiento Warrant: (1) A written legal instruction of payment (2) A warehouse receipt, which in some countries is considered a security It can be assigned to transfer title to the goods (3) An attachment to a fixed interest security (for instance, a bond) which gives certain rights to its holder, typically the right to purchase a given security at some specified future date and at a specified price Warrants may then be detached from the bond, to be traded as a separate security whose price reflects the value of the underlying bond Warrants are often issued by corporations as "sweeteners", bundled with another class of security to enhance the latters marketability Franỗais: Garantie Espaủol: Warrant Waybill: A document used as a receipt for goods Unlike a Bill of lading it is not a document of title The term is a synonymous with liner waybill, ocean waybill or sea waybill Franỗais: Lettre de voiture Espaủol: Carta de porte Weighted interest cost: The total cost of a multi-part loan (i.e a loan extended by different lenders), weighted for the respective amounts lent and the length of time the funds are on loan Franỗais: Coỷt d'intộrờt pondộrộ Espaủol: Costo de interộs ponderado Wharfage: A charge assessed by a pier or dock owner for handling incoming or outgoing cargo and merchandise Franỗais: Droits de quai Español: Muellaje Whole turnover coverage; Comprehensive coverage; global coverage: An export credit insurance/guarantee policy which covers against risk of loss due both to commercial and political causes Whole turnover policies generally charge a lower premium rate than specific policies as the risks are spread across a broader range of transactions and frequently across several debtor countries Franỗais: Couverture complète du Chiffre d'affaires; Couverture globale tous risques Español: Cobertura del rendimiento total, cobertura global, cobertura global With average: A term used in marine insurance indicating that a shipment is covered in a situation of partial damage, whenever the damage exceeds a certain percentage (3% for example) If, however, the ship is involved in a major catastrophe, such as a collision, fire or stranding, the minimum percentage requirement is waived and the insurance company pays the totality of the damage Franỗais: Avec avarie Espaủol: (seguro) Con averớa Withholding taxes: Taxes levied at source by a country on income to be paid abroad Typically this applies to interest and Dividends remitted to the home country of the firm operating abroad Franỗais: Impơts anticipés Espol: Impuesto retenido en la fuente, impuesto en origen, impuesto de retención en la fuente Without recourse: A clause in a contract whereby the lender, in the event of nonpayment, has no right to seek payment or seize assets from anyone other than the party specified in the debt contract Franỗais: Sans recours Espaủol: Sin recurso Without reserve: A term indicating that the shipper's agent or foreign representative is empowered to make definitive decisions and adjustments without referring to the individual or company he is representing Franỗais: Sans réserve Español: Sin reserva Working capital: The difference between a company’s current assets and current liabilities (excluding short-term debt) It is also known as net current assets Franỗais: Fonds de roulement Espol: Capital de explotación, capital circulante, fondo de operaciones, capital de operaciones (circulante) Working capital credit: A loan granted to temporarily strengthen the Working capital of a borrower, for example in the form of Seasonal loans or Bridging financing Franỗais: Crộdit destinộ au fonds de roulement Espaủol: Crộdito de capital circulante Working capital guarantee: A guarantee extended to exporters, designed to encourage lenders to extend them working capital loans to finance various export-related production and marketing activities Lack of working capital is one of the biggest barriers for small and medium-sized exporting enterprises Franỗais: Garantie de fonds de roulement Espol: Garantía de capital circulante World Bank Group: An integrated group of international institutions which provides financial and technical assistance to developing countries The group includes the International Bank for Reconstruction and Development, the International Development Association and the International Finance Corporation Franỗais: Groupe de la Banque Mondiale Espaủol: Grupo del Banco Mundial World Trade Organization (WTO): Successor of GATT's the WTO was established on the January 1995 as the legal and institutional foundation of the multilateral trading system The main function of WTO is to act as a forum for multilateral trade negotiations, to seek to resolve trade disputes, to oversee national trade policies and promote fair competition It is the platform on which global trade relations among countries evolve through collective debate, negotiation and adjudication Franỗais: Organisation mondiale du Commerce (OMC) Espol: Organización Mundial del Comercio (OMC) Wrap-around loan: A long-term loan structured around a short-term loan in such a way as to postpone repayments of the principal (and sometimes the interest) on the long-term loan until the short-term loan is repaid Franỗais: Prờt "structurộ autour" Espaủol: Préstamo que incorpora un préstamo existente Write-down: A specific case of write-off In general, this is the decrease in the book value of an asset if this is overstated compared with the current market value Banks may also write down a loan (i.e reduce its value on their books) when they think it might not be repaid in full Franỗais: Amortissement partiel Español: Reducir el valor contable, amortizar parcialmente Write-off: A term signifying how banks deal with debts of which there is no hope of recovery When a borrower is bankrupt, his bank writes the loans off its balance sheet by reducing its assets by the value of the loan This means the bank has to make an equal and opposite reduction in the value of its liabilities Franỗais: Amortissement Español: Pasar a pérdidas y ganancias WTO: see World Trade Organization Franỗais: OMC Espaủol: WTO Y Yankee bond: A US$ denominated bond issued on the United States capital market by a non-American borrower Franỗais: Obligation amộricaine Espaủol: Bono yanqui Yankee CD: A Certificate of Deposit issued on the US capital market by a branch of a foreign bank Franỗais: CD américain Espol: Certificado de depósito yanqui Yen-Yankees: Yen bonds issued on the US market Franỗais: Amộricaines en yen Espaủol: Yenes yanquis Yield: A term used to refer to the annual return (income) produced by an investment, expressed as a percentage For investment in stock it is calculated from the distributed dividends, for bonds or other interest bearing securities it corresponds to the effective rate of interest paid (1) Current Yield: The ratio of the coupon (interest) to the market price of a security It is expressed as a percentage and neither the maturity nor the number of interest payments made are taken in consideration (2) Direct Yield: The discounted yield based on the total life of the asset at simple interest (3) Effective Yield: This is calculated on an annual, bi-annual or quarterly compounded interest basis over the period of the actual investment (4) Yield to Maturity: The percentage rate of return paid on a bond, note or other fixed income security which is purchased and held up to its date of maturity This is calculated on the basis of the coupon rate, the length of time to maturity and the bond’s market price It is assumed that the coupon interest paid over the life of the bond will be reinvested at the same rate Franỗais: Rendement Espaủol: Yield Z Zero bonds; zero-coupon bonds: A Bond on which no periodic interest (coupons) is paid during its life, and where both the principal and the interest are paid at the bond’s maturity date The bond is sold at a discount and its maturity value equals the par value Its yield interest rate is determined by the rise in the bond’s value over time This kind of instrument is widespread in the United States and on the Euromarket Franỗais: Obligations coupon zéro (à taux d’intérêt nul) Espol: Bono de cupón cero Zero-coupon convertible: A Zero coupon bond with the option of conversion into common stock or other security Franỗais: Convertible coupon zéro (à taux d’intérêt nul) Español: Bono convertible de cupón cero Zero-coupon swap: A swap of an interest-bearing coupon security in exchange for a zerocoupon security Franỗais: Swap coupon zéro (à taux d’intérêt nul) Espol: Swap de cupón cero ... Crédito al descubierto, crédito no garantizado Use-or pay contract: Another term for take-or-pay contract Franỗais: Contrat du type "Utilisez-ou-payez" Español: Use-or pay contract Usuance; Usuance... not involve any obligation by the importing country to provide "compensation" to the exporting country, as would be the case if the importing country unilaterally imposed equivalent restraints... established on the January 1995 as the legal and institutional foundation of the multilateral trading system The main function of WTO is to act as a forum for multilateral trade negotiations, to seek to