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Debt

Contractual obligation to a third party, for which the corresponding element is a receivable.

Debt

Contractual obligation to a third party, for which the corresponding element is a receivable.

Debt

Debt

Demandable

Part of the liabilities of a company that is debt (short, medium and long term), which principal amounts that will require lenders.

Denomination unit

Monetary unit inscribed on a coin or banknote.

Devaluation

Decrease in the value of the national currency in relation to one or more reference currencies or with the price of gold.

Dividend

Part of a company’s profit allocated to each shareholder proportionate to the number shares owned.

Due date

Due date is the date when the obligation of payment of the leasing instalment/insurance premium can be demanded. On this date at the latest, the amount representing the leasing instalment and/or insurance premium must enter the account of the Financer/Insurer.

EBRD

European Bank for Reconstruction and Development

EIB

European Investment Bank - European Union institution dedicated to facilitating economic development, integration and cooperation through investment loans.

Endorsement

The signature of a bearer of paper, on the back of the paper, in order to transmit to a third party the receivable which it represents.

Endorser

Person who pledges to pay the debts of a third party, should the latter be unable to pay them.

EURIBOR

Abbreviation of Euro Interbank Offered Rate. The term defines a rate of the Euro interest - denominated, practiced in interbanking relations by great banks for loans in Euro.

Exchange rate

The price at which one currency can be bought with another.

External leasing

External leasing in our case is the leasing contract between a Romanian User and a foreign Leasing Company/financer.

Financial leasing

According to GO no.51/1997, republished, financial leasing is defined as the leasing operation which meets at least one of the following conditions: 1) The risks and benefits of the right of property over a good which is being leased are transferred to the user at the time the contract produces effects. 2) The leasing contract expressly states the transfer of the right of property over the good which is the object of leasing to the user upon the contract’s expiration. 3) The leasing period exceeds 75% of the normal duration of the use of the good which is the object of leasing; for the purposes of this definition, the leasing period includes any period for which the leasing contract can be extended.

IBRD

International Bank for Reconstruction and Development - international financial institution also known as the World Bank.

Impairment

Decrease in value; decline in a currency’s purchasing power, determined internally by inflation and externally by the deterioration of exchange terms.

Insolvency

Status declared by a court of law in which payments have ceased due to the debtor’s fault. Insolvency automatically leads to the debtor’s bankruptcy with all its consequences.

Interest

According to the Fiscal Code art.7 p.13. interest - any sum which must be paid or received for the use of money, whether or not it must be paid or received as part of a debt, in relation to a deposit or in accordance with a financial leasing contract, instalment payment sale or any type of delayed payment sale.

Leasing instalment

Leasing instalment, in accordance with the provisions of art.2 paragraph d of Government Ordinance no.51/1997. In the case of financial leasing, the share quota of the good’s entry value and of the leasing interest. In the case of operational leasing, the amortisation quota calculated according to legislative acts in force and a benefit established by the contractual parties.

Letter of credit

Document through which a bank opens a credit for a third party at the request of its client for a determined amount and period at a correspondent agency or bank

LIBOR

Interest rate charged by first rank banks on the London market to remunerate each others’ deposits.

Liquidities

The total balance assets available to a company immediately or on a short-term basis: liquidities or debt securities which can be quickly converted into liquidities.

Lombard credit

Credit opened by a banker and guaranteed through the right to redeem collateral in the form of goods or securities belonging to the client.