Glossary on Trade Financing Terms - O
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An organization of African nations, primarily with political goals.
An obligation by the borrower to supply additional collateral if the value of the objects pledged as security declines.
Français: Obligation
daccorder une couverture additionnelle
Español: Obligación
de proporcionar cobertura adicional
A bill of lading (B/L) signed by the ocean carrier indicating that the exporter has consigned a shipment to the carrier for transportation to a specific foreign market. It provides written evidence, and a receipt for the conveyance and delivery of merchandise. Unlike an Inland B/L, the ocean B/L also serves as a collection document. If it is a Straight B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a Negotiable B/L is used, the buyer must first pay for the goods, then post a bond or meet other conditions agreed by the seller. The Ocean B/L may also be used as an instrument of ownership which can be bought, sold or traded while the goods are in transit. For this purpose, it must be a Negotiable Order Bill of Lading. See also bill of lading , On Board Bill of lading, Clean Bill of Lading. Compare with Air Waybill, Inland Bill of Lading, Through Bill of Lading.
Français: Connaissement
maritime
Español: Conocimiento
de embarque marítimo, conocimiento de embarque a la orden
A policy to cover the insured from losses arising from unforeseen circumstances or damage to merchandise shipped. The basic policy provides coverage from transportation perils but may be amended to cover additional hazards. Other types of marine insurance policies include:
(1) Open (insurance) Policy: an insurance automatically applying to all of the exporters shipments during a specified period of time, rather than just to one shipment. The insured agrees to report the shipments to the insurer and pay the corresponding premium.
(2) Special Marine Policy: sometimes known as marine insurance certificate, this is a policy covering a specific shipment, most frequently used to provide evidence of insurance.
Français: Police
d'assurance maritime
Español: Póliza
de seguro marítimo oceánico
A multilateral organization of industrial and semi-industrialized countries founded in 1960 and based in Paris, France. Its aim is "to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries while maintaining financial stability and thus contribute to the world economy". It is essentially a forum for discussion of common economic and social issues, and assists member states in formulating their economic policies. See also Consensus.
Français: Organisation
de Coopération et de Développement Economique (OCDE)
Español: Organización
de Cooperación y Desarrollo Económicos (OCDE)
A forum in which 22 OECD member countries participate in the Arrangement on Guidelines for Officially Supported Export Credits (the Consensus). Turkey and Mexico also attend the Group as observers. Besides co-ordinating export credit terms, the group also serves as a forum for exchanging information on debtor country situations and on Export credit agencies' practices.
Français: Crédit
à lExport et Groupe des Garanties de Crédit de lOCDE, Comité du Commerce de
lOCDE
Español: OECD
Export Credit and Credit Guarantees Group, OECD Trade Committee
Financing not shown as a liability on the company's balance sheet
Français: Financement hors
bilan
Español: Financiación
no incluida en el balance de situación, financiación complementaria
A term used by Export credit agencies to indicate those countries considered not creditworthy, and towards which the ECA will refuse to guarantee bank loans for export financing. In such cases, either the domestic bank takes the risk on the credit being extended to the off-cover country, the exporter himself accepts the risk or the business transaction is called off.
Français: Hors-couverture
Español: Excluido de la
cobertura
(1) A general term indicating the willingness to sell an asset at a given price. An offer may, for instance, be the price on which a loan may be based, the price at which a security is sold on the market or the conditions on which a bill is discounted. Related: Bid
(2) In credit insurance, the term indicates the amounts for which an export credit agencies is committed to provide cover if the exporter succeeds in obtaining a contract. It usually refers to medium-term business, given that most agencies do not make offers for normal short-term business.
Français: Offres/Offres
Español: Oferta
The financial resources granted on concessional terms to developing countries and multilateral development institutions for the pursuance of economic development objectives. They are provided by government agencies and have a grant element of at least 25%.
Français: Assistance
de développement officielle
Español: Asistencia
oficial para el desarrollo (AOD)
The holdings of gold, foreign currency and Special Drawing Rights (SDR) of a countrys Central Bank.
Français: Réserves
officielles
Español: Reservas oficiales
Credits extended to finance the export of goods and services for which the official export credit agencies of the creditor country provides guarantees, insurance or direct financing. Under OECD Consensus rules on export credits of two years or longer, up to 85% of the export contract value may be financed. The financing element, as opposed to the guarantee/insurance element, may take different forms. It may either be extended directly by the exporter (suppliers' credit), or by a commercial bank in the form of a financial trade-related credit provided to the supplier (supplier's credit again) or to the importer (buyers' credit). It can also be extended directly by an official institution within the country of export, usually in the form of medium-term finance for the promotion of exports of capital equipment or for the implementation of large-scale, medium-term projects.
Français: Crédits
à l'export officiellement soutenus
Español: Créditos
de exportación concedidos con apoyo oficial
In general, the elimination of a position (and thus of the related risks) through an equal and opposite transaction. For example, selling a security forward if you are long.
Français: Compensation
Español: Compensación
See Countertrade.
Français: Contrats de
compensation
Español: Acuerdo de
compensación
Outside the jurisdiction of a particular country.
Français: Offshore
Español: Extraterritorial
A foreign bank involved in domestic money market, Eurocurrency and foreign exchange financial transactions. It is not allowed to accept domestic deposits but its activities are unrestricted by domestic authorities. Offshore banks are located in major financial centres characterised by very liberal reserve, tax and capital market requirements.
Français: Offshore Bank
Español: Banco
extraterritorial
The output of a given project.
Français: Ecoulement
de marchandises
Español: Producto
An agreement between the project company and the purchaser (off-taker) of the projects final output, specifying the terms and conditions of the purchase, including price, quantity and conditions of tenor of the agreement to purchase the off-take.
Français: Contrat
découlement
Español: Acuerdo de prelevo
A bill of lading certifying that the goods accepted for transportation have actually been shipped on board. On Board B/L are usually referred to in letter of credit transactions for the shipper to obtain payment from the bank.
Français: On board bill
of lading
Español: Conocimiento
de embarque a bordo
A notation on a claim document implying that the specified amount becomes due and payable immediately upon presentation of the debt certificate or payment order by the creditor to the debtor.
Français: A la demande, à
vue
Español: A
requerimiento, a la vista
See Organization of Petroleum Exporting Countries.
A means of payment whereby the exporter extends credit directly to the importer. The goods are delivered and payment is provided for at some specified future date, without the buyer issuing any negotiable instrument evidencing his legal commitment. The final payment by the buyer is via cheque or money transfer, with the bank's role being limited to moving the funds from the buyer to the seller. In some cases, the open accounts receivable may be discounted with a financial institution. An open account transaction requires the seller to have absolute trust in the integrity of the buyer, since the seller assumes all the risks of the transaction, as opposed to cash in advance. Open account is thus common in markets characterized by long-standing commercial relationships between the two parties.
Français: Compte ouvert
Español: Cuenta abierta
A contract in which some of the key elements, such as quantity and/or price will be determined at a later stage under specific sub contracts.
Français: Contrat ouvert
Español: Contrato pendiente
A Central Banks dealings in the domestic money market or securities market, aimed at adjusting and controlling the credits and money supply in the economy.
Français: Opérations
sur le marché public, opérations d'"open market"
Español: Transacciones
de mercado libre
See Ocean Marine Insurance Policy.
Français: Police
d'assurance ouverte
Español: Póliza
flotante, póliza abierta
An invitation to bid, open to all suppliers willing to submit offers. See Restricted tender.
Français: Soumission ouverte
Español: Licitación
pública
The inherent risk of a firm, also known as business risk.
Français: Risque
d'exploitation
Español: Riesgo de
explotación
Operational risk arises from the potential for loss due to significant deficiencies in system reliability or integrity. Banks may be subject to external or internal attacks on their systems or products, as well as customer misuse and inadequately designed or implemented electronic banking and electronic money systems.
Français: Risque
opérationnel
Español: Riesgo operacional
Within a project, the party responsible for the projects operation and maintenance.
Français: Opérateur
Español: Operador,
empresario
The expected return which is foregone when funds are invested in a project rather than in financial securities with a comparable level of risk.
Français: Coût
d'opportunité du capital
Español: Costo
de oportunidad del capital, costo de opción del capital
A derivative contract which gives the buyer the right, though not the obligation, to buy or sell a specific quantity of the underlying asset (e.g. security, commodity, currency, etc) at a stated strike price, within a specific period or on a specified date. In return for this right, the buyer of the option will have to pay a premium. Options are issued by investors, not by companies. Companies may buy them as a means of cover against risk (for instance, exchange rate fluctuations). See also Seller of an Option, Call option, Put option.
Français: Option
Español: Opción
A paper which may be transferred by endorsement (i.e. a negotiable instrument). Legal order instruments (such as cheques, drafts and bills of exchange) are always order instruments, even when they do not bear a "to the order to" notation. On the other hand, instruments such as Bills of lading and bill-like papers become negotiable only after such a notation is added.
Français: Instrument d'ordre
Español: Instrumento a la
orden
A regular share, without any special features such as those characterising preference shares/preferred stocks.
Français: Action
ordinaire
Español: Ordinary
share (UK)
See OECD.
Français: Organisation de
Coopération et de Développement Economique
Español: Organización
de Cooperación y Desarrollo Económicos (OCDE)
See OAU.
Français: Organisation
de lUnité Africaine
Español: Organización
de la Unidad Africana (OUA)
A cartel agreement to co-ordinate production and prices among major world oil exporting countries.
Français: Organisation
des Pays Producteurs de Pétrole (OPEC)
Español: Organización
de Países Exportadores de Petróleo (OPEP)
When a domestic company uses foreign suppliers for components or finished products.
Français: Approvisionnement
extérieur
Español: Contratación
de terceros
A technique whereby a banks client is allowed to overdraw his account, i.e. withdraw funds exceeding his credit balance. The bank gives its client a general credit facility, by which the client, through an overdraft, extends himself a short-term loan, without needing a formal loan agreement. The advantage for the client is that he will pay for only as much as he has borrowed.
Français: Découvert
Español: Descubierto
To draw in excess of the deposit balance or credit limit given by the bank.
Français: Tirer à découvert
Español: Girar en
descubierto
A bill of exchange which was not paid at maturity.
Français: Effet
dû, effet exigible, effet non honoré, effet en souffrance
Español: Letra vencida
Designed to cover the requirements of local firms establishing joint-ventures abroad, to enable them to finance their contribution to the equity of the joint-venture.
Français: Financement
de l'investissement d'outre-mer
Español: Financiación
de inversiones en el extranjero
A decentralised exchange market in which dealers from different geographical areas are linked by telephone and computer (as opposed to an official stock market where dealings are conducted on a floor). Dealings in the OTC market involve securities not listed on the official stock exchanges, typically securities of small or new companies which cannot afford the expense of being traded on a major market. The NASDAQ market is an OTC market for U.S. stocks.
Français: Hors coté
Español: Mercado
extrabursátil
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