Glossary on Trade Financing Terms - N

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N

NASDAQ:

The National Association of Securities Dealers Automated Quotations System. This is the electronic quotation and computerized trading system in the United States for over-the-counter securities.

Français: NASDAQ
Español: NASDAQ

NAFTA:

See North American Free Trade Agreement.

Français: NAFTA
Español: NAFTA

The account under which an Export Credit Agency agrees to cover those transactions which would not be considered eligible on the basis of its normal criteria, for instance because of the size of the risk connected with the transaction. Coverage is extended with the support of the government, when the transaction is seen as beneficial or of special interest to the national economy.

Français: Compte d'intérêt national
Español: Cuenta de interés nacional

National Treatment:

When foreign companies are given the same competitive opportunities, including market access, and are subject to the same legal framework as domestic companies.

Français: Traitement national
Español: Trato nacional

Nature of buyer:

A term referring to the type of corporate ownership, as this may affect the credit risk (commercial or political) and the guarantee/insurance fees. The buyer can thus be private (private companies and public sector buyers without full faith and credit status) or public (government agencies and other public buyers with full faith and credit status).

Français: Nature de l'acheteur
Español: Características del comprador

Negative amortization:

A loan repayment schedule whereby the outstanding principal balance increases, rather than being amortized, because the scheduled periodic payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, for repayment at a later stage.

Français: Amortissement négatif
Español: Amortización negativa

Negative interest or interest charge:

Interest which is deducted from the principal.

Français: Intérêt négatif ou charge d'intérêt
Español: Gastos (fiscales) por concepto de intereses

Negotiating bank:

In a letter of credit, the bank which accepts the documents for examination and, if these are found in order, credits the due amount to the beneficiary.

Français: Banque négociatrice
Español: Banco negociador

Negotiation fee:

Also known as management fee, thus is a once-only fee for the arrangement of a financial facility by an ECA or a commercial bank.

Français: Honoraires, commission de négociation
Español: Negotiation fee

Negotiable instrument:

A financial instrument which may be transferred from one owner to another without informing the original issuer. It provides evidence of the debt, and the holder of the instrument acquires legal title to the goods or property regardless of whether the previous holder had a defect in his title. Negotiable instruments include bank notes, bearer bonds, cheques, certificates of deposit, etc.

Français: Instrument négociable
Español: Instrumento negociable

Net:

The opposite of Gross. This refers to what is left after the applicable deductions have been made. For instance, Net profit/Net income indicates income after tax. Net cash flow is a company's cash flow after dividends have been made.

Français: Net
Español: Neto

Net assets/Net worth:

The company’s worth calculated by deducting total liabilities from its total assets. If this is negative, the company is considered technically insolvent.

Français: Actifs nets/Valeur nette
Español: Valor neto, patrimonio neto

Net book value:

See Book value.

Français: Valeur comptable nette
Español: Net book value

Net buyer range:

The price range within which the buffer stock manager must buy more of the commodity in order to prevent prices from falling excessively. See also Buffer stock system and Net seller range.

Français: Champ acheteur net
Español: Margen neto del comprador

Net current asset:

See Working capital.

Français: Actif circulant net
Español: Capital de explotación

Net income (USA) / Net profit (UK):

See Net.

Français: Revenu net (USA) / Profit net (GB)
Español: Ingresos netos

Net interest:

The interest left after the deduction of withholding tax (tax at source) on interest or dividend.

Français: Intérêt net
Español: Interés neto

Net present value (NPV):

Used in project evaluation, this is the present value of expected future cash flows, minus the cost.

Français: Valeur actuelle nette
Español: Valor actual neto (VAN)

Net seller range:

The price range within which the buffer stock manager must sell more of the commodity in order to keep prices from rising too far. See also Buffer stock system and Net buyer range.

Français: Champ vendeur net
Español: Margen neto del vendedor

Net weight:

The weight of the goods, excluding their packing.

Français: Poids net
Español: Peso neto

Net worth:

See Net assets.

Français: Valeur nette
Español: Net worth

New Industrial Country (NIC):

An OECD term indicating those countries which, after having experienced a rapid economic growth, have become "middle-income" countries (such as Brazil, South Korea, etc.).

Français: Nouveau pays industrialisé
Español: País de reciente industrialización (PRI)

New issues:

A general term for all forms of new long-term capital raising by borrowers. A primary market is one on which a new issue of securities is offered for the first time to investors.

Français: Nouvelles émissions
Español: Nuevas emisiones

New York Commodity Exchange:

The Futures market for trading in commodities in New York.

Français: Bourse des matières premières de New-York
Español: New York Commodity Exchange

New York Futures Exchange (NYFE):

Set up in 1979 as a subsidiary of the New York Stock Exchange for futures trading.

Français: New York Futures Exchange (NYFE)
Español: New York Futures Exchange (NYFE)

New York Stock Exchange (NYSE):

Established in 1792, it is among the oldest and largest exchange both in the US and word-wide. It is located in Wall Street in New York City.

Français: New York stock Exchange (NYSE)
Español: New York Stock Exchange (NYSE)

Nikkei index:

A quoted measure of stock price movements on the Tokyo stock exchange. The Nikkei is an index (average) of 225 stocks on the Tokyo stock exchange.

Français: Indice Nikkei
Español: Indice Nikkei

Nominal exchange rate:

The actual foreign exchange quotation, as compared to the real exchange rate adjusted for changes in purchasing power caused by inflation.

Français: Taux de change nominal
Español: Tipo de cambio nominal

Nominal value:

"In name only". The value of anything (wages, GDP, exports, commodities, shares) expressed in current prices, not taking into consideration inflation. Opposite: Real values.

Français: Valeur nominale
Español: Valor nominal

Non-accrual loan:

A loan on which principal and/or interest have not been paid for 90 days.

Français: Prêt en souffrance
Español: Préstamo no redituable, préstamo improductivo

Non-bank financial institution:

A financial institution without a banking licence which cannot, therefore, collect deposits from the public.

Français: Institution financière sans caractère-bancaire
Español: Institución financiera no bancaria

Noncash charge:

A cost, such as Depreciation, depletion or amortization, not entailing a direct cash outflow.

Français: Charge sans impact sur les liquidité
Español: Costo no monetario

Non-marketable collateral:

Security pledged as collateral for a credit transaction which cannot be sold easily because no market, or only a very restricted market, exists for it. Opposite: Marketable collateral.

Français: Garantie, collatéral non-négociable
Español: Garantía no negociable

Non-recourse financing:

The purchase by a bank or other financial institution of a firm’s medium- and long-term accounts receivable (typically, claims for the export of goods) with no recourse against the firm in the event of the failure by clients to make due payment.

Français: Financement sans-recours
Español: Financiación sin posibilidad de recurso

Non-reproducible asset:

A tangible asset with unique physical properties, such as a parcel of land, a mine, etc.

Français: Actif non reproductible
Español: Activo no reproducible

Nontariff measures (NTBs):

Market access barriers, other than traditional custom duties, which make exports to a particular country difficult and costly. NTBs may take the form of quotas, charges, discriminatory labelling and health standards and other restrictive conditions. They may result from government or private sector action.

Français: Mesures non-tarifaires
Español: Medida no arancelaria

Non tradables:

Goods and services, produced and consumed domestically which are not close substitutes of import or export goods and services.

Français: Non négociables
Español: No comerciable

Normal quote:

The direct quote method in foreign exchange.

Français: Cotation normale
Español: Cotización normal

North American Free Trade Agreement (NAFTA):

The free trade area agreement which came into force in 1994 between Canada, the United States and Mexico.

Français: Accord de libre échange commercial d’Amérique du Nord
Español: Tratado de Libre Comercio de América del Norte (TLC)

Nostro account:

An account which a domestic bank maintains at a foreign bank, expressed in foreign currency. Opposite: Vostro (or Loro) account.

Français: Compte Nostro
Español: Cuenta nostro

"Not to order" clause:

A clause printed on a bill or a cheque which excludes the possibility of transferring the paper through endorsement. Transfer may be done exclusively by assignment and the creation of a new paper made out to the new holder.

Français: Clauses "Pas à l'ordre de"
Español: Cláusula "no a la orden"

Note issuance facility (NIF):

A Revolving credit arrangement in the Eurocurrency market under which borrowers place short-term (one to six months) notes via a syndicate of prime banks. The borrowers' issue is backed by the commitment of the syndicate banks to purchase any paper which the borrowers may be unable to sell.

Français: Facilité d’émission d’effets
Español: Servicio de emisión de pagarés (SEP)

Notes:

A general term in the lending business indicating a credit instrument consisting of a written and unconditional promise to pay a sum of money, at some specified future date, to a named person or to the bearer. More specifically, it may be used to refer to debt instruments with initial maturities greater than one year and less than ten years.

Français: Effet
Español: Pagaré

Notification:

In general, a formal and legal communication from one party to another. In the presence of a bill, notification refers to the communication addressed by the owner of the cheque or bill to the previous holder and drawer, or by the endorser to the previous endorser, concerning the refusal of the drawee to pay under the bill. In case of a shipment, notification is the communication by the shipping company of the arrival of goods at the discharge port.

Français: Notification
Español: Aviso, notificación

Notifying bank:

See Advising bank.

Français: Banque notificatrice
Español: Banco notificador

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