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  Glossary on Trade Financing Terms - P
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Packing credit:
A loan granted against the presentation of a warehouse receipt, forwarder's receipt or any other document proving that the goods are no longer in the seller's possession.
Français: Crédit d’emballage
Español: Crédito de empaque
Packing list:
A list describing the number and kind of the shipped items, as well as other information needed for transportation purposes.
Français: Liste d'emballage
Español: Lista de especificación de embalajes, nota de embarque, lista de bultos
Paid-in surplus:
The surplus (excess) paid by investors in the purchase of a company's shares. When shares are issued at above par, the capital paid in is divided into share capital (at par) and paid-in surplus (the excess above par). Also called Share premium.
Français: Payé en-sus
Español: Prima de emisión (de acciones), prima pagada por venta de acciones
A general term indicating commercial paper such as bills of exchange or promissory notes. It may also be used to refer to any kind of security.
Français: Papier
Español: Efectos, títulos, valores
(1) Par price; Par rate: A term indicating that the market price of a security is equal to its nominal or face value.
(2) Par value: The value of the security as printed on its face (i.e. the security’s face or nominal value). It also indicates the maturity value, i.e. the amount that the issuer agrees to pay at the maturity date of the security.
(3) Currency at par: A currency whose spot and forward prices are the same.
Français: Pair
Español: Par
Par of exchange:
The equivalent of a unit of a currency expressed in the currency of another country, using gold as the standard value.
Français: Par of exchange
Español: Paridad del cambio
Parallel loan:
See Back-to-back loan.
Français: Prêt parallèle
Español: Parallel loan
Parallel Market:
A secondary currency market where currency rates are different from those applied in the official market. The term may sometimes also apply to the black market.
Français: Marché parallèle
Español: Mercado paralelo
Paris Club:
A term designating the international meetings convened to negotiate the rescheduling of the "official debt" (i.e. public sector debt) of heavily indebted developing countries. Negotiations take place between creditor and debtor countries to consider opportunities for rescheduling or consolidating the debt-service payments on loans extended, insured or guaranteed by the creditor countries' governments or official agencies. The broad terms of the agreed rescheduling are then set forth in an Agreed Minute, which the representatives will submit to their respective governments. The Paris Club has neither a fixed membership nor an institutional structure and is open to all official creditors who accept its practices and procedures. Comparable meetings occasionally take place in London (London Club) and in New York for countries which wish to renegotiate repayment terms for their debts to private banks. These are sometimes called "creditor clubs".
Français: Club de Paris
Español: Club de París
Paris Inter-Bank Offered Rate:
Français: Taux interbancaire offert à Paris
Español: Paris Inter-Bank Offered Rate
Parity: Currency parity:
The official ratio of a currency in terms of another. Dollar parity, for example, is the value ratio of a currency against US dollars.
Français: Parité: Parité monétaire
Español: Paridad cambiaria
Partial acceptance:
An acceptance which differs from the terms stated in the bill, e.g. an acceptance calling only for partial payment of the amount or at a different time than that originally agreed upon.
Français: Acceptation partielle
Español: Aceptación parcial
Payable in advance:
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.
Français: Payable à l'avance
Español: 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.
Français: Payable à 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.
Français: Méthode de remboursement
Español: Método de reembolso, método de amortización
The person or company to whom a draft, bill, cheque or other negotiable instrument is made payable.
Français: Bénéficiaire
Español: Beneficiario (del pago)
P/E ratio:
Price/earnings ratio.
Français: Rapport, ratio: Prix/Bénéfice
Español: Relación precio-beneficio (por acción) (PB), relación entre cotización y precio (PER)
To fix the value of a currency to a benchmark, such as another currency or the value of gold.
Français: 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.
Français: Garantie de bonne exécution
Español: 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.
Français: 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.
Français: Lettre de crédit de bonne d'exécution
Español: Carta de crédito de cumplimiento
Permanent financing:
Financing which is put in place to replace a short-term loan or a contractor​/​construction loan.
Français: Financement permanent
Español: Financiación permanente
"without an end". For instance, a perpetual warrant indicates a warrant which has no expiry date.
Français: Perpétuité
Español: 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.
Français: Taux interbancaire offert à 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.
Français: Place d'exécution
Español: Lugar de ejecución
Plain vanilla:
A term referring to relatively simple derivative financial instruments, such a swap or other derivative issued with standard features. Opposite of Exotic.
Français: Plain vanilla
Español: Clásico
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.
Français: Nantissement
Español: Prenda, pignoración, garantía, fianza
Pledged collateral:
Assets of value, such as securities, merchandise, etc., deposited and pledged as security for the repayment of a loan.
Français: Gage nanti
Español: 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.
Français: Risque politique
Español: Riesgo político
Political-Risk-Only coverage:
A guarantee/insurance policy providing cover against losses arising from political risks.
Français: Couverture uniquement du risque politique
Español: Cobertura de riesgos políticos
A general term indicating a collection of investments, such as real estate or financial instruments.
Français: Portefeuille
Español: 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.
Français: Investissement de portefeuille
Español: Inversión de cartera
(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.
Français: Position
Español: Posición
Postage paid:
A pricing term meaning that the seller has paid the mailing charges.
Français: Frais postaux payés
Español: 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.
Français: Financement après expédition
Español: Financiación posterior a la expedición
Post- shipment risk:
The risk of loss due to events occurring after the shipment of the goods.
Français: Risque après expédition
Español: 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.
Français: Motif de précaution
Español: Motivo precaución
Pre-commissioning interest:
See Interest during construction​.
Français: Intérêt antérieur à la mise en exploitation
Español: Pre-commissioning interest
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.
Français: Préférences
Español: 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 company’s other shares.
Français: Actions privilégiées
Español: Acción preferente
(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 bond’s par value.
Français: Prime
Español: 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.
Français: Opération à prime
Español: Operación con 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.
Français: Préqualification des enchérisseurs
Español: Precalificación 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.
Français: Valeur actuelle
Español: 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.
Français: Financement de pré-livraison
Español: 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.
Français: Risque de pré-expédition
Español: 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).
Français: Prix/valeur comptable
Español: Relación 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).
Français: Prix/flux de trésorerie
Español: 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.
Français: Rapport, ratio: Prix/Bénéfice
Español: Relación 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.
Français: Rapport Prix/Ventes
Español: 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.
Français: Elasticité du prix
Español: Elasticidad-precio, elasticidad con respecto a los precios
Primary market:
A market for newly issued securities See also Secondary market.
Français: 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.
Français: Taux pour les débiteurs de 1er ordre
Español: Tipo preferencial (de interés bancario)
(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.
Français: Principal
Español: Principal
Principal-agent relationship:
A situation whereby one person, the agent, acts on the behalf of another person, the principal.
Français: Relation Commettant-agent
Español: Relación entre el mandante y el corredor
Private discount rate:
See Market discount rate.
Français: Taux d'escompte privé
Español: Private discount rate
Private placement:
A situation when bonds or other securities are sold directly to a limited number of investors.
Français: Placement privé
Español: Colocación 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.
Français: Compte de pertes et profits
Español: Estado de pérdidas 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.
Français: Facture pro-forma
Español: 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.
Français: Relevé pro-forma
Español: 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.
Français: 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.
Français: Financement de projet
Español: Financiación de proyectos
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.
Français: Prolongation
Español: Prolongación, posposición
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​.
Français: Billet à ordre
Español: Pagaré, reconocimiento de deuda, pagaré a la orden
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.
Français: Prospectus
Español: Prospecto
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.
Français: Protectionnisme
Español: Proteccionismo
Protracted default:
Usually defined by Export credit agencies as a payment not received six months or longer after its date of maturity.
Français: Défaut
Español: Incumplimiento prolongado
Provide cover:
To provide security (collateral) for an unsecured debt.
Français: Accorder la couverture
Español: Hacer provisión
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.
Français: Provisionner
Español: Provisión de fondos, constitución de reservas
Public issue:
See Public offering.
Français: 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.
Français: Offre publique
Español: Oferta pública, colocación pública
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.
Français: Pull
Español: Vender con 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.
Français: Parité des pouvoirs d'achat
Español: 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​.
Français: Couverture pure
Español: Cobertura pura
A promotion method which involves direct selling techniques.
Français: Push
Español: 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 spot market 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.
Français: Option de vente
Español: 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.
Français: Plan pyramidal
Español: Régimen piramidal
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