Glossary on Trade Financing Terms - M

[a] [b] [c] [d] [e] [f] [g] [h] [i] [j] [k] [l] [n] [o] [p] [q] [r] [s] [t] [u] [v] [w] [x] [y] [z]

M

Management Fee:

A fee charged by a commercial bank or an ECA for the arrangement of a financial facility. Sometimes called arrangement fee or negotiation fee.

Français: Honoraires, commission de direction
Español: Comisión de dirección, comisión de gestión

Manufacturing period:

The period during which goods are manufactured, extending from the signature of the contract to the shipment of the final items.

Français: Période de fabrication
Español: Tiempo de fabricación

Margin:

(1) In banking, the difference between the bank’s interest rate applied on lending and that applied on deposits (also known as spread).

(2) On the exchange market, the difference between the market value of a security and the loan which investors can raise through a broker, where the loan funds will be used to purchase such a security.

(3) The lending limit, a percentage of the total assets pledged for Lombard loans.

Français: Marge
Español: Margen

Margin account:

An account with which securities can be purchased by a combination of cash and loans. Such loans are collateralized by the security and, if the value of the security drops significantly, the owner will be asked to put more cash into the account or sell a portion of the security.

Français: Compte de marge
Español: Cuenta de margen, cuenta de adelantos

Margin call:

A demand by a securities broker or a futures clearing house for additional funds to offset position losses on a margin account for securities or financial futures.

Français: Appel de marge
Español: Cobertura complementaria, margen complementario

Marine Insurance:

An insurance covering loss or damage of goods at sea. Marine insurance will compensate the owner of the goods for losses sustained due to fire, shipwreck, piracy and various other causes, beyond those losses which can be legally recovered from the carrier. The most common types of marine insurance coverage are the All Risk Coverage, Free of Particular Average and With Average.

Français: Assurance maritime
Español: Seguro marítimo

Market access:

The openness of a national market to foreign products, reflecting the government's willingness to allow imports to compete freely with domestically produced goods and to limit the existence of barriers to free trade.

Français: Ouverture du marché
Español: Accesibilidad del mercado

Market discount rate:

Also called private discount rate. See prime rate.

Français: Taux d'escompte du marché
Español: Market discount rate

Market disruption:

When a flow of imports of a particular product prompts a significant decline in the sales of domestically produced goods, causing major economic difficulties for domestic producers.

Français: Rupture du marché
Español: Desorganización del mercado, perturbación del mercado

Market maker:

A Dealer who buys and sells securities for his own account, without necessarily being immediately able to match a buyer and a seller. Market makers can have a major influence on trading.

Français: Teneur de marché
Español: Creador de mercado

Market value:

The price at which goods or securities are traded on the market (in the case of shares or bonds the reference market is the stock exchange). It may also refer to the value investors believe a firm to be worth, calculated as the number of outstanding shares multiplied by the price at which shares are traded on the market.

Français: Valeur du marché
Español: Valor de mercado, valor de venta, cotización

Marketable:

A term indicating securities or other assets which can be easily sold or otherwise liquidated. In the case of securities, good marketability implies the existence of an active secondary market within which they may be easily resold.

Français: Négociable
Español: Negociable, comerciable

Marketable collateral:

A security pledged as collateral which can be easily sold (such as stocks and bonds listed on a stock exchange). Opposite: Non-marketable collateral.

Français: Garantie négociable
Español: Garantía corriente, garantía negociable

Matching:

In banking, this indicates the ability of a bank to match a loan by taking a deposit of the same maturity. A bank with matched books is one where the distribution of maturities of its assets and liabilities are the same. In export credit insurance, the term refers to the capacity of an export credit agency to match the credit terms and conditions offered by the ECA of another country, under the Consensus arrangement.

Français: Appariement
Español: Contrapartida, adaptación

MATIF (Marché à Terme International de France):

A securities and commodities' futures market in France.

Français: MATIF
Español: MATIF

Maturity date:

The date when a note, draft, acceptance, loan or a debt in general becomes due for payment. For a bond, it indicates the date when the principal is required to be repaid. See also Due date.

Français: Date d'échéance
Español: Fecha de vencimiento (del plazo), fecha de cumplimiento

Maximum coverage:

The highest percentage of a loan principal which can be guaranteed or insured.

Français: Couverture maximum
Español: Cobertura máxima

Mean commissioning:

The date on which 50% of the value of the capital goods contracted to be commissioned and delivered to the buyer, have been delivered.

Français: Mise en exploitation moyenne
Español: Comisión media

Mean delivery:

The date by which 50% of the value of the goods to be delivered or the services to be rendered, have actually been delivered or rendered.

Français: Livraison moyenne
Español: Entrega media

Medium term:

Usually any credit period of between two to five years.

Français: Moyen terme
Español: Plazo medio

Merchandise trade balance:

The balance between a country’s imports and exports of goods within its overall balance of payments. Also known as balance of trade.

Français: Balance commerciale des marchandises
Español: Balanza comercial

Merchant bank:

A financial institution whose financial business gradually evolved from its merchant business. The merchant banker's local knowledge of the countries with which they traded made them specialists in estimating the creditworthiness of their customers, which in turn enabled them to accept bills of exchange and arrange loans at the request of foreign traders. Their business has extended beyond normal banking transactions to include dealings in foreign exchange, the issue of long-term loans for governments and companies abroad, advice to companies, underwriting of new issues, management of takeover bids, engagement in insurance business, investment trust management, etc. See also investment bank.

Français: Banque d'affaires
Español: Banco comercial, banco de inversiones, banco de negocios

Mercosur:

A regional trade agreement set up in 1994 between Argentina, Brazil, Paraguay and Uruguay. It is modelled on the European Community and has established a common external tariff and eliminated most barriers to trade in services.

Français: Mercosur
Español: Mercosur

MITI:

The Ministry of International Trade and Industry in Japan. It also acts as the Export-Import bank of Japan.

Français: MITI
Español: MICI

Mixed Credit/Mixed loan:

Export credits combining concessional and market-rate financing, extended as an export promotion mechanism. The loan will consist of a tranche offered on preferential terms (government tranche, concessional rate) and a tranche on market conditions (bank tranche, market rate). The concessional component reflects the presence of an aid element, either in the form of a grant or of subsidized interest rates. Under the Consensus, if the aid portion is greater than 25% of the total credit then the whole financial arrangement is considered aid. Mixed loans are generally granted on transactions with economically weak countries in order to promote exports and facilitate trade relations. See also Concessionality level and Grant element.

Français: Crédit mixte/Prêt mixte
Español: Crédito mixto

Mixed venture:

A joint venture between the government and a private company.

Français: Société en participations mixtes
Español: Inversión mixta

Modaraba:

An Islamic financing contract enabling Islamic financial institutions to provide funds to any client who would like to start an entrepreneurial activity but without the financial strength required. The institution is entitled to the profit of the activity, while the client receives a percentage of this profit as a fee for the know-how and management services provided.

Français: Modaraba
Español: Modaraba

MONEP (Marché des Options Négotiable de Paris):

A French market dealing with negotiable options contracts.

Français: MONEP
Español: MONEP

Monetary assets:

Assets denominated in monetary terms or with a face value (cash, account receivables, bonds etc.). Non-monetary assets on the other hand include assets such as land, buildings and equipment.

Français: Actifs monétaires
Español: Activo monetario

Money loan:

A financing arrangement whereby the bank extends payments directly, such as in the form of loans or discount credit. Opposite: Guarantee credit.

Français: Prêt monétaire
Español: Préstamo en dinero

Money market:

The market for lending or borrowing short-term funds and dealing in negotiable instruments and securities (such as treasury bills and commercial paper). In addition to the national money markets, the Euromoney market has developed in recent years into an efficient international market place for dealing in short-term funds. Compare with Capital market.

Français: Marché monétaire
Español: Mercado del dinero, mercado monetario

Moody's:

A credit rating agency.

Français: Moody's
Español: Moody’s

Mortgage:

The written transfer of title to some specified real estate property, but not of its possession, to secure the payment of a debt or the performance of some obligation. See also Lien.

Français: Hypothèque
Español: Hipoteca

Mortgage bank:

A bank specialized in granting mortgage loans. See also Mortgage note.

Français: Banque hypothécaire
Español: Banco hipotecario, sociedad de crédito hipotecario

Mortgage loan:

A loan secured by a mortgage on real estate property as collateral, which obliges the borrower to make a predetermined series of payments.

Français: Prêt hypothécaire
Español: Préstamo hipotecario

Mortgage note:

A security with repayments spread over an agreed long period of time

Français: Cédule hypothécaire
Español: Cédula hipotecaria

Most Favoured Nation Treatment (MFN):

A GATT term indicating a country’s commitment to extend the trade concessions applied to a particular trading partner to all the other countries eligible for MFN treatment. Thus, when a country cuts tariffs on a particular product imported from one country, this tariff reduction automatically applies to imports of this product from any other country eligible for MFN treatment.

Français: Traitement de la nation la plus favorisée
Español: Trato de la nación más favorecida, trato NMF

Multi-currency credit line:

An internationally used financial expression for a credit line which the borrower may draw in one or several of the currencies mentioned in the credit agreement.

Français: Ligne de crédit multi-monnaies
Español: Línea de crédito con múltiples divisas, línea de crédito multidivisas

Multilateral Investment Fund:

This provides grants to promote market-oriented investment policy initiatives and reforms, encouraging domestic and foreign investment in Latin America and the Caribbean. The Fund complements the activities undertaken by the Inter-American Development Bank.

Français: Fonds d'investissement multilatéral
Español: Fondo Multilateral de Inversiones

Multilateral Investment Guarantee Agency (MIGA):

Set up in 1988 as part of the World Bank Group, to encourage equity and other types of direct investment flows towards developing countries. It provides investors with coverage and guarantees against non-commercial risks, and advises local governments in developing countries on policies and programmes to foster foreign investments.

Français: Agence multilatérale de garantie d'investissement
Español: Organismo Multilateral de Garantía de Inversiones (OMGI)

Multinational corporation:

A company which owns and controls subsidiaries and plants outside the country in which it is based. Being present in many different countries enables it to use world resources where they are cheaper and of higher quality, to service many different national markets and to reduce risks by diversification.

Français: Multinationale
Español: Empresa multinacional, empresa transnacional

Multiple exchange rate system:

A system by which the government sets different exchange rates for different transactions.

Français: Système de taux de changes multiples
Español: Sistema de tipos de cambio múltiples

Multilateral Lending Agency:

A general term indicating a financial institution jointly owned by a group of countries and designed to promote international and regional economic co-operation. Examples include the Asian Development Bank, the African Development Bank, the World Bank through the International Bank for Reconstruction and Development, the International Finance Corporation, etc.

Français: Agence de prêt multilatérale
Español: Organismo multilateral de crédito

Multi sourcing:

An expression used to describe the provision of inputs (in the form of goods or services) from a number of different countries

Français: Ressources multiples
Español: Suministro múltiple

Mutual fund:

A pool of money managed by an investment company, offering investors a variety of services according to the fund’s investment strategy and policy. For instance, some funds seek to generate a regular income for their investors, some are set up to preserve investors' money, while others prefer to invest in rapidly growing and risky companies.

Français: Fonds de placement
Español: Fondo (común) de inversión

> home