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O

top of pageOAU (Organization of African Unity):

An organization of African nations, primarily with political goals.

Français: OAU
Español: OAU

 

 

top of pageObligation to provide additional cover:

An obligation by the borrower to supply additional collateral if the value of the objects pledged as security declines.

Français: Obligation d’accorder une couverture additionnelle
Español: Obligación de proporcionar cobertura adicional

 

 

top of pageOcean Bill of Lading:

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

 

 

top of pageOcean Marine Insurance Policy:

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 exporter’s 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

 

 

top of pageOECD (Organization for Economic Cooperation and Development):

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)

 

 

top of pageOECD Export Credit and Credit Guarantees Group, OECD Trade Committee:

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 l’Export et Groupe des Garanties de Crédit de l’OCDE, Comité du Commerce de l’OCDE
Español: OECD Export Credit and Credit Guarantees Group, OECD Trade Committee

 

 

top of pageOff-balance-sheet financing:

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

 

 

top of pageOff-cover:

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

 

 

top of pageOffer/Offers:

(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

 

 

top of pageOfficial development assistance (ODA):

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)

 

 

top of pageOfficial reserves:

The holdings of gold, foreign currency and Special Drawing Rights (SDR) of a country’s Central Bank.

Français: Réserves officielles
Español: Reservas oficiales

 

 

top of pageOfficially supported export credits:

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

 

 

top of pageOffset:

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

 

 

top of page"Offset" agreements:

See Countertrade.

Français: Contrats de compensation
Español: Acuerdo de compensación

 

 

top of pageOff-shore:

Outside the jurisdiction of a particular country.

Français: Offshore
Español: Extraterritorial

 

 

top of pageOffshore Bank:

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

 

 

top of pageOff-take:

The output of a given project.

Français: Ecoulement de marchandises
Español: Producto

 

 

top of pageOff-take agreement:

An agreement between the project company and the purchaser (off-taker) of the project’s 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 d’écoulement
Español: Acuerdo de prelevo

 

 

top of pageOn board bill of lading:

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

 

 

top of pageOn demand; On sight:

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

 

 

top of pageOPEC:

See Organization of Petroleum Exporting Countries.

Français: OPEC
Español: OPEC

 

 

top of pageOpen account:

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

 

 

top of pageOpen contract:

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

 

 

top of pageOpen-market operations:

A Central Bank’s 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

 

 

top of pageOpen (insurance) Policy:

See Ocean Marine Insurance Policy.

Français: Police d'assurance ouverte
Español: Póliza flotante, póliza abierta

 

 

top of pageOpen Tender:

An invitation to bid, open to all suppliers willing to submit offers. See Restricted tender.

Français: Soumission ouverte
Español: Licitación pública

 

 

top of pageOperating risk:

The inherent risk of a firm, also known as business risk.

Français: Risque d'exploitation
Español: Riesgo de explotación

 

 

top of pageOperational risk:

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

 

 

top of pageOperator:

Within a project, the party responsible for the project’s operation and maintenance.

Français: Opérateur
Español: Operador, empresario

 

 

top of pageOpportunity cost of capital:

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

 

 

top of pageOption:

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

 

 

top of pageOrder instrument:

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

 

 

top of pageOrdinary share (UK); common stock (USA):

A regular share, without any special features such as those characterising preference shares/preferred stocks.

Français: Action ordinaire
Español: Ordinary share (UK)

 

 

top of pageOrganization for Economic Cooperation and Development:

See OECD.

Français: Organisation de Coopération et de Développement Economique
Español: Organización de Cooperación y Desarrollo Económicos (OCDE)

 

 

top of pageOrganization of African Unity:

See OAU.

Français: Organisation de l’Unité Africaine
Español: Organización de la Unidad Africana (OUA)

 

 

top of pageOrganization of Petroleum Exporting Countries (OPEC):

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)

 

 

top of pageOutsourcing:

When a domestic company uses foreign suppliers for components or finished products.

Français: Approvisionnement extérieur
Español: Contratación de terceros

 

 

top of pageOverdraft:

A technique whereby a bank’s 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

 

 

top of pageOverdraw:

To draw in excess of the deposit balance or credit limit given by the bank.

Français: Tirer à découvert
Español: Girar en descubierto

 

 

top of pageOverdue bill; dishonoured bill:

A bill of exchange which was not paid at maturity.

Français: Effet dû, effet exigible, effet non honoré, effet en souffrance
Español: Letra vencida

 

 

top of pageOverseas investment finance:

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

 

 

top of pageOver-the-counter market (OTC market):

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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