Glossary on Trade Financing Terms - R

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R

Rate:

The cost of money, either to borrow or to lend (interest rate) or to exchange for another currency (exchange rate).

Français: Taux
Español: Tipo, tasa, índice

Rate for advances against collateral; Lombard rate:

(1) The interest rate for Lombard loans granted by the Central Bank to the commercial banks, against the pledging of securities eligible for discounting (Official Lombard rate).

(2) The interest rate applied by the commercial banks to Lombard (collateral) loans granted to their clients.

Français: Taux pour des avances garanties, taux avec collatéral, taux lombard
Español: Tasa de préstamos con garantía prendaria; Tasa Lombard

A ratio calculated as the current value of an asset minus its value at the time of purchase, divided by its value at the time of purchase. In the case of equities, dividends may be included in the current value.

Français: Taux de rendement
Español: Tasa de rendimiento, tasa de rentabilidad

Rating:

The credit assessment of an individual, or a firm, used particularly in connection with the issue of securities by corporate borrowers.

Français: Notation
Español: Clasificación

Rating agencies:

Agencies specialised in the analysis of the financial status of a company, and in the subsequent assignment of a quality (credit) rating. The most important rating agencies include Standard and Poors and Moody's. Rating is also practised in relation to countries, and provides useful information to investors on the quality of bonds issued by the local government.

Français: Agences de notation
Español: Agencia de calificación crediticia, agencia de calificación de valores, organismo de clasificación de valores

Real assets:

Identifiable (although not necessarily tangible) assets, such as buildings, equipment, patents and trademarks, as opposed to financial assets.

Français: Actifs réels
Español: Bienes raíces, bienes inmuebles, activo real

Real exchange rate:

The exchange rate adjusted for the inflation differential between the two countries.

Français: Taux de change réel
Español: Tipo de cambio real

Real Income per Capita:

This measures real GNP (deducting inflation) per head. If real GNP increases faster than population growth, this should lead to a higher standard of living, although in reality this will depend upon income distribution.

Français: Revenu réel par tête d'habitant
Español: Renta real por habitante, ingreso real per capita

Real value:

As opposed to nominal value, a real value takes into consideration inflation (i.e. deducts the effects of inflation).

Français: Valeur réelle
Español: Valor real

Rebate Rate:

The discount made on the bill of Exchange or draft if it is paid before the due time.

Français: Taux de rabais
Español: Tasa de descuento

Receivables; Debtors (UK):

A general term for what is due and collectable, i.e. the total amounts due on goods sold, services rendered or money loaned and yet to be received. Also known as Account receivables.

Français: Débiteurs
Español: Receivables, debtors (UK)

Recession:

A general decline in the level of economic activity and growth at country, region or world level. It is generally associated with an increase in unemployment and a decline in the rate of inflation.

Français: Récession
Español: Recesión, contracción económica

Reciprocity:

The reduction of a country's tariffs or other trade restraints in return for comparable trade concessions by another country.

Français: Réciprocité
Español: Reciprocidad

Recourse:

The right of a person, bank or Export credit agency to whom a note or other obligation has been endorsed, to demand payment from the endorser of the note, if the original borrower fails to pay.

Français: Recours
Español: Recurso, acción

Recoveries:

Repayments made to agencies or banks by borrowing countries, relating to the claims paid out by agencies to exporters, or loans granted by banks.

Français: Recouvrements
Español: Recuperaciones

Recycling:

In finance, this refers to the transfer of funds from units with a financial surplus to those with a deficit. When this transfer occurs through financial intermediaries, it is referred to as intermediation.

Français: Recyclage
Español: Reciclaje

Red Clause:

A clause (originally typed in red) added to a letter of credit authorizing the advising/negotiating bank to make an advance payment to the beneficiary (exporter) before the actual shipment to the buyer. The advance may be up to 100% of the export contract value and may be used by the exporter to buy the inputs for manufacturing or shipment. Red clause credits are used primarily when the buyer (importer) has a agent in the exporting country. To finance its purchases, the importer may arrange for the opening of a red clause letter of credit. Negotiations of red clause credits are limited to the bank making the advances in order to assure that revenues from the shipment are used to repay the advances made.

Français: "Clause rouge"
Español: Carta de crédito con cláusula roja

Redeemable shares:

Shares which may be bought back by the company which originally issued them.

Français: Actions rachetables
Español: Acción amortizable

Redemption:

Cancellation of a security, either by cash payment or exchange against another security. Redemption may be mandatory on a specified date, at the option of the borrower after a certain date or conditional upon certain defined events (such as a change in the tax law which might jeopardise the borrower's position).

Français: Remboursement/amortissement
Español: Rescate

Rediscount:

To sell or discount a negotiable instrument which has already been discounted once.

Français: Ré-escompte
Español: Redescuento

Refinance:

(1) Paying off existing debts with new (and cheaper) loans.

(2) Funding provided by an ECA to a commercial bank to assure liquidity and to enable it to finance export transactions. The bank may be required to provide collateral for the funding.

Français: Refinancement
Español: Refinanciación, refinanciamiento

Registered bond:

A bond whose owner is registered with the issuer, as opposed to a bearer bond.

Français: Obligation nominative
Español: Bono nominativo, obligación nominativa

Regress:

Recourse by the holders of bills, drafts and cheques against previous holders, endorsers or issuers etc.

Français: Recours
Español: Regreso

Reimbursable:

This denotes an arrangement whereby the contractor is reimbursed by the client for the cost of goods and services purchased for implementation of the contract.

Français: Remboursable
Español: Reembolsable

Reinsurance:

A means of sharing risk in the insurance business. Typically, the amount originally insured (usually by a private sector insurer) is totally or partially reinsured by an official (government) insurance agency. The private insurer might wish to keep the commercial component of the risk on its own books, while seeking reinsurance against political risks. Some large official agencies also provide reinsurance for smaller official agencies.

Français: Réassurance
Español: Reaseguro

Re-lending:

Funding provided by an ECA to a commercial bank in support of the credits extended by the latter (generally for buyer's credit only). Re-lending does not usually require the pledging of collateral.

Français: Re-prêter
Español: Reciclaje de préstamos

Remittance:

A sum of money transferred from one party to another, either by cash or a negotiable instrument, usually as payment for the purchase of goods or services.

Français: Remise
Español: Remesas

Remitting Bank:

The bank instructed to handle collections, which in turn instructs the collecting bank.

Français: Remitting Bank
Español: Banco remitente

Renewal:

In banking, the extension of a credit agreement, whereby the old credit arrangement is replaced by the establishment of a new one.

Français: Renouvellement
Español: Renovación

Repayment period; credit period:

The period during which repayments of a credit are due to be made. In a commercial contract, this usually starts on completion of the contract.

Français: Période de remboursement
Español: Período de reembolso

Repo:

Also known as repurchase agreement, this is an agreement by which one party sells a security to another party and agrees to repurchase it on a specified date at a specified price.

Français: Contrat de rachat
Español: Acuerdo de recompra

Rescheduling:

See Debt Rescheduling.

Français: Ré-échelonnement
Español: Rescheduling

Reserve for bad debts:

A reserve set aside in the books of a business or a bank to provide for unexpected bad debt losses which may occur in the current or following years. Also known as provision for doubtful accounts.

Français: Réserve pour dettes douteuses
Español: Reserva para deudas incobrables

Reserve currency:

Currencies held by Central Banks as foreign reserves. These currencies are universally accepted in international debt settlement and are fully convertible.

Français: Monnaie de réserve
Español: Divisa de reserva, moneda de reserva

Reserves:

A general accounting term denoting an amount of money set aside from profits (and not distributed to shareholders as dividends) which is transferred into a special liability account to meet unexpected future expenditure or loss.

Français: Réserves
Español: Reservas

Reserve ratio:

A requirement by a country’s monetary authorities for commercial banks to set aside a specified percentage of their deposits, to meet unforeseen eventualities.

Français: Ratio de réserve
Español: Coeficiente de reservas

Residual or residual (value):

In leasing, the value of equipment at the end of the term of lease.

Français: Résiduel ou valeur résiduelle
Español: Valor residual, valor de recuperación

Residual insurance:

An insurance policy stipulating that equipment will have a certain residual value after a period of time.

Français: Assurance résiduelle
Español: Seguro residual

Residual Risk:

The proportion of an export credit which is not insured/guaranteed by an export credit agency.

Français: Risque résiduel
Español: Riesgo residual

Restricted Tender:

An invitation to Bid addressed only to certain pre-qualified suppliers. See also Open Tender; Pre-qualification of Bidders.

Français: Soumission limitée
Español: Licitación selectiva

Retained earnings; Retained profit:

The earnings of preceding year(s), not yet paid out as dividends, which the firm has retained for reinvestment in its operations.

Français: Bénéfices non-distribués
Español: Beneficios no distribuidos, utilidades no distribuidas

Retention:

(1) In dividend payments, the company’s practice of holding back or retaining current earnings;

(2) In a supply contract, the sums retained by the buyer which are gradually extended to the supplier as he fulfils his contractual obligations.

Français: Rétention
Español: Retención

Return On Assets (ROA):

An indicator of profitability, calculated as net profits after tax divided by the company’s total assets. The ratio helps a firm examine how effectively it uses its available assets. i.e. its ability to generate profits from available assets.

Français: Rentabilité des actifs
Español: Rendimiento de los activos

Return On Equity (ROE):

An indicator of profitability, calculated as net profits after tax divided by ordinary shareholders' equity. Investors use ROE as a measure of how efficiently a company is using the money they have provided.

Français: Rentabilité des fonds propres
Español: Rendimiento del capital

Return on investment (ROI):

A ratio which is calculated as net profits after tax divided by investment.

Français: Rentabilité de l'investissement
Español: Rendimiento de las inversiones

Revaluation:

(1) The upward revision in the value of a company's assets;

(2) The upward movement of an exchange rate which is pegged to other currencies or gold, by a formal and official action of the country’s monetary authorities. Opposite: Devaluation.

Français: Réévaluation
Español: Revalorización, revaloración

Revocable letter of credit:

See Letter of credit.

Français: Lettre de crédit révocable
Español: Carta de crédito revocable

Revolving credit:

A credit which can be automatically renewed without additional negotiation with the bank. It is available up to a specified amount which remains constant during a given period of time, such that whenever it is drawn upon, it becomes available again for its full amount. The lender is legally committed to make available to the borrower the funds agreed upon, while the client can withdraw funds according to his needs. A revolving credit may be granted for short-term credits (less than one year), but also for medium term financing (up to three years). The borrower must pay a commitment fee for the unused amount of the credit facility (usually around 0.5%), in addition to the interest rate charges on the borrowed funds (about 0.5% above the short-term rate). Compare with Overdraft.

Français: Crédit revolving (renouvelable)
Español: Crédito rotatorio, crédito renovable

Revolving Letter of credit:

See letter of credit.

Français: Lettre de crédit revolving (renouvelable)
Español: Carta de crédito rotatoria

Risk averse:

A person who prefers investments characterised by low levels of risk. Opposite of Risk taker.

Français: Répugnance au risque
Español: Agente económico que rehuye el riesgo

Risk Lay off:

The shifting of all or part of the commercial or political risk to an ECA, commercial bank or both.

Français: Déplacement de risque
Español: Traspaso de riesgos

Risk taker:

A person hoping to gain high expected returns on investments in return for taking on higher amounts of risk. Opposite of Risk averse.

Français: Preneur de risque
Español: Agente económico dispuesto a aceptar riesgos

Risk Retention:

The portion of the invoice value or portion financed by a bank, not covered by the guarantee/insurance, which is retained for the account of the exporter and/or the commercial bank. The exporter's risk retention may sometimes be purchased by the bank without recourse.

Français: Rétention de risque
Español: Retención del riesgo

Roll over:

A financial technique whereby funds received from a maturing security are reinvested in a new issue of a similar security.

Français: Roll over
Español: Renovación

Roll-over credit:

A medium to long-term loan which is periodically re-priced at a pre-determined interest rate spread over the reference interest rate. Most medium-long term loans on the Euromarket are on a roll-over basis, where the interest rate is usually reset every three, six or twelve months and the basis for the periodic interest rate adjustment is the current London Interbank Offered rate (LIBOR).

Français: Crédit "roll-over"
Español: Crédito de refinanciación

Royalties:

The payments made for the use of a patent.

Français: Droits d'auteur
Español: Regalías, derechos de patente

Rules of origin:

Rules which set the criteria for determining the "economic nationality" of a product. They serve as a differentiating mechanism to determine whether a particular discriminatory trade arrangement, providing for either preferential or detrimental treatment, will be applied to a given product.

Français: Règle d'origine
Español: Normas de origen

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