Glossary on Trade Financing Terms - V

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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.

Français: Licence d'export validée
Español: Licencia de exportación validada

Validity date:

The date on which a bond or guarantee expires.

Français: Date de validité
Español: Fecha de validez

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.

Français: Taxe sur la valeur ajoutée
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 spot transaction, 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.

Français: Date de valeur
Español: Fecha de valor

Vanilla issue:

An issue of securities which has no unusual features.

Français: 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.

Français: Taux d'intérêt variable
Español: 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.)

Français: Prélèvement variable
Español: Gravamen variable, impuesto variable

Variable price security:

A security, such as a share or a bond, which sells at a fluctuating, market-determined price.

Français: Titre à prix variable
Español: Título 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.

Français: Prêt à taux variable
Español: Préstamo 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.

Français: Véhicule monétaire
Español: 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.

Français: Capital-risque
Español: 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.

Français: Société de négoce spécialisée 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.

Français: Intégration verticale
Español: 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 do 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.

Français: Restriction d'exportation volontaire
Español: Limitación voluntaria de las exportaciones, LVE

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