glossary on trade financing terms j l m n

J
J-curve:
A graphic description of the evolution of a country's current account balance following a
devaluation. With devaluation, the cost of exports decreases while that of imports increases. As
it takes time for the volumes of exports and imports to adjust to the new relative prices, the
current account may initially worsen before improving in response to the devaluation of
exchange rates.
Français: Courbe J
Español: Curva en J, curva en forma de J

Joint and several guarantee:
A guarantee by which the guarantor or guarantors commit themselves jointly and severally with
the principal debtor. The guarantor or guarantors may each be sued independently of the
principal debtor.
Français: Garantie conjointe et solidaire
Español: Garantía mancomunada y solidaria

Joint guarantor:
A guarantor who jointly and severally pledges to become legally liable for the debt or default of
another person. Legal entities can also act as a joint guarantor. Also known as joint surety.
Français: Garant solidaire
Español: Garante solidario, avalista solidario

Joint Venture:
A business undertaking between two or more companies or organizations which will share
ownership and control of the joint company’s activities.
Français: Entreprise en participation
Español: Empresa conjunta, empresa mixta, operación conjunta, proyecto mixto, proyecto en
común, proyecto de riesgos compartidos

Junior creditors:

Second-line creditors in case of a debtor’s default, vis-à-vis senior creditors who have priority in
the distribution of assets.
Français: Créanciers de rang inférieur
Español: Acreedor no prioritario

Junk bonds:
High-risk bonds issued by companies with credit ratings below investment grade (a ranking
given by the credit rating agencies). Such bonds are also called high-yield bonds as they offer
investors higher yields than bonds of financially sound companies. They are usually issued to
finance leverage buy-out operations.
Français: Obligations à haut risque
Español: Bono basura


Just-in-time (JIT):
A manufacturing system which minimises inventories by arranging that components and parts
be delivered as they are needed in the production process.
Français: Juste à temps
Español: Justo a tiempo (JAT)

L
Lag strategy:
A foreign exchange management strategy consisting of delaying payments or receipts in a
foreign currency, on the expectation of the evolution of the foreign exchange rate.
Opposite: Lead strategy.
Français: Stratégie de retardement
Español: Estrategia de atraso

Latin American Integration Association (LAIA):
A regional economic and trade integration agreement involving most Latin American nations.

Français: Association d’intégration des pays d’Amérique Latine
Español: Asociación Latinoamericana de Integración (ALADI)

Last in, first out (LIFO):
LIFO is a method of evaluating and calculating a company's inventories (stocks, in the UK). See
also First in, first out (FIFO).
Français: Dernier entré-premier sorti
Español: (método de) Ultima entrada, primera salida (UEPS)

L/C:
Abbreviation for Letter of credit.


Français: L/C
Español: L/C

Lead strategy:
The opposite of the lag strategy defined above. This strategy implies that firms will pay off
foreign currency debts and collect foreign currency receipts early. This, typically, because the
local currency is expected to weaken.
Français: Stratégie d'anticipation
Español: Estrategia de adelanto

Leasing:
A contract whereby an asset is supplied by its owner (the lessor) to another party (the lessee)
for a specific period (usually long term), in return for periodic compensation (lease payments).
The lessor retains title to the asset, while the lessee acquires the right to use it during the
specified time without acquiring ownership rights. Leasing is an indirect form of financing, as it
permits the use of an asset whose purchase would otherwise have had to be financed by a loan.
It also entails fiscal advantages compared with long-term loans. Leasing contracts are usually

signed for the use of industrial equipment, facilities and capital goods (such as machines,
technical installations, vehicles, etc.). International leasing is a form of financing increasingly
used in the export of equipment.
Français: Crédit-bail
Español: Arrendamiento financiero

Legal lien:
See Lien.
Français: Droit de rétention
Español: Legal lien

Lending limit:
The maximum value of a particular asset which may be used as collateral for a loan or mortgage
(sometimes expressed as a percentage of the asset’s total value).


Français: Limite de crédit
Español: Límite de crédito

Letter of credit (L/C):
A financial document issued by an issuing bank at the request of a buyer (applicant) to a seller
(beneficiary), which guarantees payment to the seller if the terms and conditions specified in the
L/C are fulfilled. It usually contains a brief description of the goods, the documents required,
shipping date and an expiry date after which payment will no longer be made. There are
different types of L/C, according to the level of security they grant the beneficiary
(seller/exporter).
(1) Irrevocable Letter of Credit: This can neither be modified nor cancelled without the
agreement of all the parties concerned. The payment by the issuing bank is guaranteed
provided that the beneficiary (seller/exporter) satisfies all the terms and conditions of the L/C.
(2) Revocable Letter of Credit: This may be modified or cancelled by the issuing bank at any

time and without notice to the beneficiary. However, payments or drafts negotiated within the
terms of the credit before receipt of the revocation or amendment notice from the issuing bank
remain validly binding for all parties. Negotiability is restricted to the advising bank and
confirmation is usually not available. The revocable letter of credit gives maximum flexibility to
the buyer but involves risks for the seller.
(3) Confirmed Irrevocable Letter of Credit: A L/C in which the responsibility of another bank
(the confirming bank, which is usually the same as the advising bank) has been added to that of
the issuing bank, upon authorization or request of the latter. The confirmation represents a
definite undertaking by the confirming bank, which obligates itself in the same manner as the
issuing bank. It is used to back up the credit standing of the issuing bank and to mitigate risk by
replacing a foreign bank risk with a domestic bank risk.
(4) Irrevocable Unconfirmed Letter of Credit: A L/C which has been advised through an advising
bank, acting as an agent of the issuing bank, without however assuming any responsibility
towards the beneficiary except for taking reasonable care to check the apparent authenticity of
the documentary credit which it advises.
(5) Revolving Letter of Credit: A type of L/C issued only once and through which the money
made available to the seller, after being drawn within a stated period of time, will again become
available in the future, usually under the same terms and without another L/C being issued. This
type of credit is used in connection with regular and ongoing purchases from a foreign supplier.
Revolving L/Cs may be revocable or irrevocable, and the revolving element may be linked to
time and/or value.
(6) Documentary Letter of Credit: A L/C where the issuing bank stipulates that certain
documents should accompany the draft. These documents assure the applicant (buyer/importer)
that the merchandise has been shipped, is in good condition and that title to the goods has been
transferred to the importer.
(7) Negotiable Letter of Credit: A L/C issued in such form that it allows any bank to negotiate the
documents.
See also Irrevocable Negotiation Letter of Credit, Irrevocable Straight Letter of Credit, Back-toBack letter of credit, Red Clause credit, Green Clause credit, Standby Letter of Credit.

Français: Lettre de crédit (L/C)
Español: Carta de crédito

Letter of Credit -Traveller’s (circular):
A L/C issued on behalf of a customer who plans to travel extensively. The customer pays for the
L/C when it is issued and can request payments from the correspondent banks indicated by
the issuing bank, during a specified period of time. The correspondent banks will honour the
drafts up to the amount of credit. Each bank which honours a draft endorses the L/C with the
date the payment was made, the bank's name, the amount drawn against the L/C and the
charges to the issuing bank's account. See also Advised L/C.
Français: L/C lettre de voyage circulaire
Español: Carta di credito - Traveller's

Leverage:
A US term to indicate the degree to which a business is funded by loans rather than by
shareholders' equity (i.e. the indebtedness of a firm compared to its equity structure). This is
equivalent to gearing in UK terms.
Français: Effet de levier
Español: Apalancamiento financiero

Leveraged buy-out (LBO):
The take-over/acquisition of a company, financed largely by debt (i.e. loans and bonds) rather
than equity. The loans extended and the bonds issued to finance the take-over are usually
secured against the assets and cash flow of the target company (i.e. being bought). Due to the
large amount of debt relative to equity in the newly bought company, its bonds are typically junk
bonds.
Français: Acquisition par effet de levier
Español: Compra apalancada de empresas

Leveraged lease:

A Lease arrangement whereby the lessor borrows a large proportion of the funds needed to
purchase an asset and then grants the lender a Lien on such asset, together with pledging the


lease payments to secure the borrowing.
Français: Bail à effet de levier
Español: Arrendamiento apalancado

Liabilities:
A company’s obligations towards its creditors, suppliers, customers etc., as distinguished from
those to its owners, partners or shareholders. Liabilities consist of borrowed funds and must be
paid in the short-, medium- or long-term. Short-term debts, bank loans and overdrafts are often
known as current liabilities. With reference to banks, their liabilities are made up of deposits,
bonds and bills. Opposite: Assets.
Français: Dettes
Español: Pasivos, obligaciones

Liability on bills of exchange:
A liability created by the signature on the bill of Exchange .
Français: Dette sur lettre de change
Español: Obligaciones basadas en la letra de cambio

LIBID:
An abbreviation for London Interbank Bid Rate (interbank rate), i.e. the rate paid by a first-rate
bank on time deposits from other first-rate banks.
Français: LIBID
Español: LIBID

LIBOR:
See London Inter Bank Offer Rate.

Français: LIBOR
Español: LIBOR


Licensing agreement:
A business agreement whereby one firm gives another the right to use assets such as
trademarks, patents, copyrights or other know-how, against the payment of a fee.
Français: Contrat de licence
Español: Acuerdo sobre concesión de licencia

Licensing arrangement (in trade):
A procedure requiring potential importers or exporters to secure permission from government
authorities in order to be able to conduct trade transactions.
Français: Disposition relative à la licence (dans le commerce)
Español: Acuerdo de licencia

Lien:
A legal term indicating the right or claim of a creditor against the property of a debtor in
connection with secured debt financing. The creditor is entitled to hold such property until the
debt is paid or some other obligation is fulfilled.
Français: Privilège, Droit de rétention, Nantissement
Español: Gravamen, prenda, privilegio

Lien in rem, right of lien:
A restricted right to hold and retain a property until the creditor’s claim is satisfied. If the claim is
not met, the creditor is entitled to realize the property securing the lien and satisfy his claim out
of the resulting proceeds.
Français: Droit de rétention
Español: Derecho prendario, derecho de retención

LIFFE (London International Financial Futures Exchange):


An exchange market dealing in futures contracts (on currencies, commodities, stocks,
bonds, treasury bills, etc.). Standardized financial futures have been traded on this exchange
since 1982.
Français: LIFFE (London International Financial Futures Exchange)
Español: LIFFE (London International Financial Futures Exchange)

LIFO:
See Last in, first out.
Français: LIFO
Español: LIFO

Lighter:
A vessel transferring cargo between ship and shore, used mainly in harbours and inland
waterways.
Français: Allège, Péniche
Español: Barcaza, gabarra

Lighterage:
The cost of loading or unloading a vessel by barges.
Français: Déchargement par allèges
Español: Gabarraje

Limit:
(1) The highest/lowest acceptable price for the purchase/sale of securities, where the
transaction may be conducted either directly or through a broker. Price limits are set to avoid the
danger of adverse or unexpected price changes.
(2) The upper limit for the utilization of a line of credit.

Français: Limite
Español: Límite


Limited recourse financing:
A financing technique for major capital projects where the lender's decision to extend funds is
based mainly on the project's assets as collateral and the expected cash flows and earnings as
a source of funds for repayment, rather than on the general creditworthiness of the borrower.
Français: Financement à recours limité
Español: Financiamiento con derecho de recurso limitado

Line of credit:
A credit arrangement whereby the bank puts at its client’s disposal a maximum loan balance
and agrees to finance within this balance several contracts subsequently entered into by the
client. Lines of credit may set up for miscellaneous capital goods purchases (usually known as
general purpose lines of credit) or for contracts associated with one project (usually known as
project lines of credit).
Français: Ligne de crédit
Español: Line of credit

Liquid assets:
Assets which can be readily and cheaply turned into cash, notably cash itself and short-term
securities.
Français: Actifs liquides
Español: Activos líquidos, valores realizables a corto plazo, disponibilidades líquidas, haberes
líquidos, fondos líquidos

Liquidation:
(1) The dissolution of an asset or of a company through its sale to settle outstanding debts.
(2) The settlement of forward or future transactions on the corresponding market.

Français: Liquidation
Español: Liquidación


Liquidity:
The speed with which a financial asset may be liquidated. Within a company, it refers to the
availability of liquid funds, which may be used to honour its payment obligations on time or to
finance new projects. In a broader sense, it refers to the width of a country’s financial markets: a
market is said to be liquid when the level of trading activity is high, thus allowing buying and
selling with minimum price disturbance.
Français: Liquidité
Español: Liquidez

Liquidity Adequacy:
This indicates whether the institution has met pre-set liquidity standards and ratios for that
particular sector of activity. Liquid assets are graded according to their marketability and liquidity
risk.
Français: Suffisance de liquidités
Español: Suficiencia de liquidez

Liquidity preference:
The inclination of individuals and corporations to keep their assets in varying degrees of liquidity.
One argument is that greater liquidity allows better investment flexibility at times of market
upheaval.
Français: Préférence pour les liquidités
Español: Preferencia por la liquidez

Liquidity ratios:
These are ratios which measure a firm's liquidity, i.e. its ability to meet its short-term financial
obligations on time, such as the acid test or current ratio. In banking these refer to the ratios set

by the Central Bank, requiring that commercial banks keep a certain share of their assets in
liquid form (e.g. cash and short-term marketable instruments such as Treasury bills) in order to
meet day-to-day demands for cash.
Français: Rapports, ratios de liquidités
Español: Coeficientes de liquidez


Liquidity risk:
The risk arising from the difficulty of liquidating (i.e. selling) an asset. It consists of the difference
between the true value of the asset and the likely sale price, less commissions.
Français: Risque de liquidité
Español: Riesgo de liquidez, riesgo de tesorería

Listed stocks:
Stocks which are traded on an exchange.
Français: Actions cotées
Español: Acción registrada en bolsa, cotizada en la bolsa

Loan against pledge:
A loan secured by the pledging of collateral, such as securities, merchandise, etc.
Français: Prêt contre nantissement
Español: Préstamo contra prenda

Loan against pledged bill:
A loan secured by the pledging of a bill of Exchange , blank endorsed by the customer.
Français: Prêt contre nantissement d'effets
Español: Préstamo contra letras en prenda

Loan stock:
That part of a company's capital which is raised through interest-bearing long-term loans and the

issue of bonds. See Debenture. Compare with Equity.
Français: Emprunt obligataire
Español: Obligación sin garantía


Local bill:
A bill of Exchange accepted by a bank for collection or discounting, which is payable where the
accepting bank is located.
Français: Effet local
Español: Letra nacional

Local costs:
The costs incurred by the supplier in the buyer's country for locally sourced goods and services,
necessary for the performance of the export sales contract. These costs are not usually covered
by Export Credit Agencies' finance and guarantees.
Français: Coûts locaux
Español: Costo en moneda nacional

Lombard loan (UK); Collateral loan (USA):
A loan granted against the pledging of securities (broker's loan) or goods (advance against
goods as security). It carries interest based on the Lombard rate.
Français: Prêt Lombard (GB), Prêt garanti (USA)
Español: Lombard préstamos

Lombard rate:
An interest rate used for private credit lines (Lombard loan). In some countries the rate is
published.
Français: Taux Lombard
Español: Tasa Lombard; Tasa de préstamos con garantía prendaria

Lomé Convention:


An agreement concluded at Lomé, Togo in 1975, to which several additional agreements have
subsequently been added. The Convention enables market access preferences, as well as a
package of technical and financial assistance programmes, to be extended by the European
Union to African, Caribbean and Pacific (ACP) countries (mostly former colonies of the EU
members).
Français: Convention de Lomé
Español: Convenio de Lomé

London Club:
A creditor cartel of private commercial banks, set up in the early ‘80s to deal with debt
rescheduling. The Paris Club, while also concerned with debt repayment from developing
countries, is an association of official creditors.
Français: Club de Londres
Español: Club de Londres

London Interbank Offered Rate (LIBOR):
The London interbank base borrowing rate, i.e. the interest rate for large interbank transactions
in the international banking market (e.g. Eurodollars and Eurocurrency markets). It is a floating
rate, varying according to market conditions and depending upon the loan period as well as the
currency of reference (usually specific periods of time, such as one, three or six months). See
also Interbank Offered Rate.
Français: Taux interbancaire offert à Londres
Español: Tipo de interés interbancario en el mercado de capitales de Londres (LIBOR)

London International Financial Futures Exchange:
See LIFFE
Français: London International Financial Futures Exchange

Español: London International Financial Futures Exchange

Long hedge:


The purchase of a futures contract in anticipation of the actual purchase on the cash market. It is
frequently practised by processors or exporters as a protection against an increase in the cash
price. Opposite of Short hedge. See alsoHedge.
Français: Acheter à terme
Español: Cobertura con posición larga

Long position:
In the securities or commodity trade, the position of owning or holding more of a given security
or commodity than one has contracted to deliver in future (i.e. the number of contracts bought
exceeds the number of contracts sold). One goes long in the expectation that prices will rise, so
as to realize a profit from the sale of the underlying security or commodity. Opposite: short
position.
Français: Position en titres ou en devises
Español: Posición larga

Long term:
Usually any credit period over five years.
Français: Long terme
Español: Largo plazo

Long-term debt:
For a development bank this refers to obligations (such as loans and bonds) with a maturity of
more than five years from the date of issue. For a commercial bank long-term debt is that of one
year or longer.
Français: Dette à long terme

Español: Deuda a largo plazo

Long-term debt ratio:
An indicator of financial gearing/leverage. It is determined by dividing long-term debt by the
capital available, i.e. the sum of long-term debt, preferred shares and common shareholder
equity.


Français: Ratio d'endettement à long terme
Español: Coeficiente de endeudamiento a largo plazo

Longs:
British government securities (gilts) with a maturity of more than fifteen years.
Français: Longs
Español: Largo

Loro account:
An old fashioned name for vostro account.
Français: Compte Loro
Español: Cuenta loro

Lump sum:
A fixed sum agreed at the initiation of a contract, payable for the performance of a specific task.
It is frequently used to define payment for services.
Français: Somme globale/forfaitaire
Español: Suma global, monto global, suma fija

M
Management Fee:
A fee charged by a commercial bank or an ECA for the arrangement of a financial facility.

Sometimes called arrangement fee or negotiation fee.
Français: Honoraires, commission de direction
Español: Comisión de dirección, comisión de gestión


Manufacturing period:
The period during which goods are manufactured, extending from the signature of the contract
to the shipment of the final items.
Français: Période de fabrication
Español: Tiempo de fabricación

Margin:
(1) In banking, the difference between the bank’s interest rate applied on lending and that
applied on deposits (also known as spread).
(2) On the exchange market, the difference between the market value of a security and the loan
which investors can raise through a broker, where the loan funds will be used to purchase such
a security.
(3) The lending limit, a percentage of the total assets pledged for Lombard loans.
Français: Marge
Español: Margen

Margin account:
An account with which securities can be purchased by a combination of cash and loans. Such
loans are collateralized by the security and, if the value of the security drops significantly, the
owner will be asked to put more cash into the account or sell a portion of the security.
Français: Compte de marge
Español: Cuenta de margen, cuenta de adelantos

Margin call:
A demand by a securities broker or a futures clearing house for additional funds to offset

position losses on a margin account for securities or financial futures.
Français: Appel de marge
Español: Cobertura complementaria, margen complementario


Marine Insurance:
An insurance covering loss or damage of goods at sea. Marine insurance will compensate the
owner of the goods for losses sustained due to fire, shipwreck, piracy and various other causes,
beyond those losses which can be legally recovered from the carrier. The most common types
of marine insurance coverage are the All Risk Coverage, Free of Particular Average and With
Average.
Français: Assurance maritime
Español: Seguro marítimo

Market access:
The openness of a national market to foreign products, reflecting the government's willingness
to allow imports to compete freely with domestically produced goods and to limit the existence of
barriers to free trade.
Français: Ouverture du marché
Español: Accesibilidad del mercado

Market discount rate:
Also called private discount rate. See prime rate.
Français: Taux d'escompte du marché
Español: Market discount rate

Market disruption:
When a flow of imports of a particular product prompts a significant decline in the sales of
domestically produced goods, causing major economic difficulties for domestic producers.
Français: Rupture du marché

Español: Desorganización del mercado, perturbación del mercado

Market maker:


A Dealer who buys and sells securities for his own account, without necessarily being
immediately able to match a buyer and a seller. Market makers can have a major influence on
trading.
Français: Teneur de marché
Español: Creador de mercado

Market value:
The price at which goods or securities are traded on the market (in the case of shares or bonds
the reference market is the stock exchange). It may also refer to the value investors believe a
firm to be worth, calculated as the number of outstanding shares multiplied by the price at which
shares are traded on the market.
Français: Valeur du marché
Español: Valor de mercado, valor de venta, cotización

Marketable:
A term indicating securities or other assets which can be easily sold or otherwise liquidated. In
the case of securities, good marketability implies the existence of an active secondary
market within which they may be easily resold.
Français: Négociable
Español: Negociable, comerciable

Marketable collateral:
A security pledged as collateral which can be easily sold (such as stocks and bonds listed on a
stock exchange). Opposite: Non-marketable collateral.
Français: Garantie négociable

Español: Garantía corriente, garantía negociable

Matching:
In banking, this indicates the ability of a bank to match a loan by taking a deposit of the same
maturity. A bank with matched books is one where the distribution of maturities of its assets and
liabilities are the same. In export credit insurance, the term refers to the capacity of an export


credit agency to match the credit terms and conditions offered by the ECA of another country,
under the Consensus arrangement.
Français: Appariement
Español: Contrapartida, adaptación

MATIF (Marché à Terme International de France):
A securities and commodities' futures market in France.
Français: MATIF
Español: MATIF

Maturity date:
The date when a note, draft, acceptance, loan or a debt in general becomes due for payment.
For a bond, it indicates the date when the principal is required to be repaid. See also Due date.
Français: Date d'échéance
Español: Fecha de vencimiento (del plazo), fecha de cumplimiento

Maximum coverage:
The highest percentage of a loan principal which can be guaranteed or insured.
Français: Couverture maximum
Español: Cobertura máxima

Mean commissioning:

The date on which 50% of the value of the capital goods contracted to be commissioned and
delivered to the buyer, have been delivered.
Français: Mise en exploitation moyenne
Español: Comisión media


Mean delivery:
The date by which 50% of the value of the goods to be delivered or the services to be rendered,
have actually been delivered or rendered.
Français: Livraison moyenne
Español: Entrega media

Medium term:
Usually any credit period of between two to five years.
Français: Moyen terme
Español: Plazo medio

Merchandise trade balance:
The balance between a country’s imports and exports of goods within its overall balance of
payments. Also known as balance of trade.
Français: Balance commerciale des marchandises
Español: Balanza comercial

Merchant bank:
A financial institution whose financial business gradually evolved from its merchant business.
The merchant banker's local knowledge of the countries with which they traded made them
specialists in estimating the creditworthiness of their customers, which in turn enabled them to
accept bills of exchange and arrange loans at the request of foreign traders. Their business has
extended beyond normal banking transactions to include dealings in foreign exchange, the issue
of long-term loans for governments and companies abroad, advice to companies, underwriting

of new issues, management of takeover bids, engagement in insurance business, investment
trust management, etc. See alsoinvestment bank.
Français: Banque d'affaires
Español: Banco comercial, banco de inversiones, banco de negocios

Mercosur:


A regional trade agreement set up in 1994 between Argentina, Brazil, Paraguay and Uruguay. It
is modelled on the European Community and has established a common external tariff and
eliminated most barriers to trade in services.
Français: Mercosur
Español: Mercosur

MITI:
The Ministry of International Trade and Industry in Japan. It also acts as the Export-Import bank
of Japan.
Français: MITI
Español: MICI

Mixed Credit/Mixed loan:
Export credits combining concessional and market-rate financing, extended as an export
promotion mechanism. The loan will consist of a tranche offered on preferential terms
(government tranche, concessional rate) and a tranche on market conditions (bank tranche,
market rate). The concessional component reflects the presence of an aid element, either in the
form of a grant or of subsidized interest rates. Under the Consensus, if the aid portion is greater
than 25% of the total credit then the whole financial arrangement is considered aid. Mixed loans
are generally granted on transactions with economically weak countries in order to promote
exports and facilitate trade relations. See alsoConcessionality level and Grant element.
Français: Crédit mixte/Prêt mixte

Español: Crédito mixto

Mixed venture:
A joint venture between the government and a private company.
Français: Société en participations mixtes
Español: Inversión mixta

Modaraba:


An Islamic financing contract enabling Islamic financial institutions to provide funds to any client
who would like to start an entrepreneurial activity but without the financial strength required. The
institution is entitled to the profit of the activity, while the client receives a percentage of this
profit as a fee for the know-how and management services provided.
Français: Modaraba
Español: Modaraba

MONEP (Marché des Options Négotiable de Paris):
A French market dealing with negotiable options contracts.
Français: MONEP
Español: MONEP

Monetary assets:
Assets denominated in monetary terms or with a face value (cash, account receivables, bonds
etc.). Non-monetary assets on the other hand include assets such as land, buildings and
equipment.
Français: Actifs monétaires
Español: Activo monetario

Money loan:

A financing arrangement whereby the bank extends payments directly, such as in the form of
loans or discount credit. Opposite: Guarantee credit.
Français: Prêt monétaire
Español: Préstamo en dinero

Money market:
The market for lending or borrowing short-term funds and dealing in negotiable instruments and
securities (such as treasury bills and commercial paper). In addition to the national money
markets, the Euromoney market has developed in recent years into an efficient international
market place for dealing in short-term funds. Compare with Capital market.


Français: Marché monétaire
Español: Mercado del dinero, mercado monetario

Moody's:
A credit rating agency.
Français: Moody's
Español: Moody’s

Mortgage:
The written transfer of title to some specified real estate property, but not of its possession, to
secure the payment of a debt or the performance of some obligation. See also Lien.
Français: Hypothèque
Español: Hipoteca

Mortgage bank:
A bank specialized in granting mortgage loans. See also Mortgage note.
Français: Banque hypothécaire
Español: Banco hipotecario, sociedad de crédito hipotecario

Mortgage loan:
A loan secured by a mortgage on real estate property as collateral, which obliges the borrower
to make a predetermined series of payments.
Français: Prêt hypothécaire
Español: Préstamo hipotecario

Mortgage note:


A security with repayments spread over an agreed long period of time
Français: Cédule hypothécaire
Español: Cédula hipotecaria

Most Favoured Nation Treatment (MFN):
A GATT term indicating a country’s commitment to extend the trade concessions applied to a
particular trading partner to all the other countries eligible for MFN treatment. Thus, when a
country cuts tariffs on a particular product imported from one country, this tariff reduction
automatically applies to imports of this product from any other country eligible for MFN
treatment.
Français: Traitement de la nation la plus favorisée
Español: Trato de la nación más favorecida, trato NMF

Multi-currency credit line:
An internationally used financial expression for a credit line which the borrower may draw in one
or several of the currencies mentioned in the credit agreement.
Français: Ligne de crédit multi-monnaies
Español: Línea de crédito con múltiples divisas, línea de crédito multidivisas

Multilateral Investment Fund:

This provides grants to promote market-oriented investment policy initiatives and reforms,
encouraging domestic and foreign investment in Latin America and the Caribbean. The Fund
complements the activities undertaken by theInter-American Development Bank.
Français: Fonds d'investissement multilatéral
Español: Fondo Multilateral de Inversiones

Multilateral Investment Guarantee Agency (MIGA):
Set up in 1988 as part of the World Bank Group, to encourage equity and other types of direct
investment flows towards developing countries. It provides investors with coverage and
guarantees against non-commercial risks, and advises local governments in developing
countries on policies and programmes to foster foreign investments.


Français: Agence multilatérale de garantie d'investissement
Español: Organismo Multilateral de Garantía de Inversiones (OMGI)

Multinational corporation:
A company which owns and controls subsidiaries and plants outside the country in which it is
based. Being present in many different countries enables it to use world resources where they
are cheaper and of higher quality, to service many different national markets and to reduce risks
by diversification.
Français: Multinationale
Español: Empresa multinacional, empresa transnacional

Multiple exchange rate system:
A system by which the government sets different exchange rates for different transactions.
Français: Système de taux de changes multiples
Español: Sistema de tipos de cambio múltiples

Multilateral Lending Agency:

A general term indicating a financial institution jointly owned by a group of countries and
designed to promote international and regional economic co-operation. Examples include
the Asian Development Bank, the African Development Bank, the World Bank through
the International Bank for Reconstruction and Development, the International Finance
Corporation, etc.
Français: Agence de prêt multilatérale
Español: Organismo multilateral de crédito

Multi sourcing:
An expression used to describe the provision of inputs (in the form of goods or services) from a
number of different countries
Français: Ressources multiples
Español: Suministro múltiple