Due to our high degree of specialization and the wide range of services we offer, OeKB cannot always avoid using technical language. In our glossary we explain key words that may be difficult to understand. If the term you are look for is not here, please let us know and we would be happy to add it.

A

ADAS (Austrian Direct Auction System)

The “Austrian Direct Auction System”, or ADAS, is a special software developed by the OeKB for the settlement of government bond auctions.
For more about the auction procedure for Austrian government bonds

Advance Payment Guarantee

An “advance payment guarantee” is the guarantee of a bank or insurer that protects the down payment risk of an importer. If the exporter does not provide the goods or services agreed upon, or goes bankrupt, the importer’s down payment is returned.
See also risk assumptions for bank guarantees

AGCS (Gas Clearing and Settlement)

The AGCS, “Austrian Gas Clearing and Settlement AG", is a clearinghouse for balancing energy in the Austrian gas market. As Balance Group Coordinator (BGC), AGCS is responsible for the price determination and billing of balancing energy in the distribution area East.
AGCS

APCS (Power Clearing and Settlement)

The APCS, “Power Clearing and Settlement AG", is the central clearinghouse for balancing energy on the Austrian electricity market. As Balance Group Coordinator (BGC), APCS is responsible for price determination and billing for balancing energy.

Asset Allocation

The distribution of invested assets over different types of investment classes is called asset allocation.
The asset allocation of Austrian pension funds is shown on this page:
Investment Development of Pension Funds

Aval

An “Aval”, or financial guarantee, is a bank guarantee that assumes the customer’s burden of debt and works much like a guarantee. If the customer is not able to settle their debt, the bank pays. Banks often demand collateral for guarantees.
More about Avals at: Risk Assumption for Bank Guarantees

B

Balancing Area APG (Electricity)

A balancing area describes a network area in the electricity market within which the balance between generation and consumption is coordinated. APG is the abbreviation for "Austrian Power Grid", a public limited company that operates the supra-regional grid and is responsible for the control of Austrian electricity energy supply.
APG

Balancing Area OST (Gas market)

This distribution area describes a network on the gas market within which the balance between gas supply and gas consumption is coordinated. The settlement of balancing energy in the distribution area OST is done by AGCS. OeKB conducts financial clearing, risk management and credit checks as a service provider of AGCS.

Batch

A batch file contains a set of data records that can be processed by a computer in a single step. Among other things, we send master data and appointment data on domestic and foreign securities on request as a batch file. Batch files can contain data in different file formats such as: TXT, CSV, XML etc.

Balancing Energy

Balancing energy is the difference between the energy input and the energy output within a balance group. If, for example, the actual consumption of a balance group differs from the forecast consumption, this is called “balancing energy”. Further information is available from the regulatory authority “E-Control” on their page:
Control reserve and balancing energy

Balancing Group

A balancing group is a collection of suppliers and customers in a virtual group within an energy market, within which a balance between application (energy purchasing, energy production,) and delivery (energy sales, consumption) of electrical energy takes place.

Balance Group Coordinator (BGC)

The balance group coordinator (BGC) is the registry for market participants in an energy market. The calculation, allocation and billing of balancing energy is the task of the balancing group coordinator.

Balance Group Representative (BGR)

As the legal entity, the balance group representative (BGR) represents the balance group members on the energy market as opposed to other market participants.

Bearer Security

A bearer security is a security that is not registered to a specific name. A change of ownership is made by a simple handover. The opposite of a bearer security is a registered security.

Berne Union (BU)

The Berne Union (BU) is the international association of export credit and investment insurance companies. The OeKB is a member of the Berne Union. Further information about our memberships in international institutions can be found here:
International Framework

Bid Bond

A bid bond is often required in international tenders. Only bidders who deposit a bank guarantee together with their offer will be accepted. The tendering authority wants to ensure that the bidder is able to fulfil its obligations with the offer and not, for example, back out of the contract. The amount is usually between 2% to 5% of the offer value.

Bid Closing Date

A "Bid closing date" is the deadline for submitting a bid.

BGC Clearinghouse

BGC is the acronym for “Balance Group Coordinator” in the energy market. The BGC is the operator of the clearinghouse, which performs the calculations of the balancing energy, determines the price for balancing energy, and manages the balance group in organizational and accounting regards.

Buyer’s Credit

When the exporter's bank extends a loan to the importer or their bank to finance the export business. Upon presentation of the documents defined in the loan agreement, the loan will be paid directly to the exporter, making it a cash transaction for them.
More information can be found here:
Buyer’s Credit

C

Capital Yields Tax (KESt)

The capital yields tax (KESt) is a form of income tax that must be paid on domestic investment income, in particular from shares and investment funds. In Austria, domestic and foreign investment funds report tax-relevant data to the OeKB, which then determines the income tax treatment.
The OeKB publishes this data here: www.profitweb.at


Central Counterparty (CCP)

A central counterparty (CCP) is a legal entity that enters into a transaction between parties as a contracting party when dealing in securities. The CCP is a kind of middleman who ensures the anonymization of trading and ensures the efficiency of offsetting risk, since they become the central trading partner for both buying and selling.

Central Counterparty Austria (CCP.A)

CCP.A, "CCP Austria Settlement Agent for Exchange Transactions", acts as the central counterparty in Austria for all transactions executed on the Vienna Stock Exchange (cash market and futures market). It is responsible for the clearing and risk management of all CCP-eligible securities and forward transactions on the Vienna Stock Exchange and assumes or manages the settlement or default risk. The company is equally owned by the Wiener Börse AG (The Vienna Stock Exchange) and the OeKB.
 CCP.A – Central Counterparty Austria

Central Securities Depository

A central securities depository assumes the collective custody of securities deposited by credit institutions and which can be ordered (in collective custody). In Austria, OeKB CSD GmbH fulfils these tasks.
OeKB CSD GmbH

CFI (Classification of Financial Instruments)

The CFI code was developed to enable a globally consistent categorization of financial instruments. This is advantageous because the terms of financial products in different countries have different meanings. Since July 2017, the CFI has been renewed to better meet the ever-growing demands.

CIRR (Commercial Interest Reference Rate)

The Commercial Interest Reference Rate (CIRR), as defined in the OECD Arrangement, is a reference interest rate for state-subsidized export finance. In the eurozone member countries, there is a single EUR CIRR based on the secondary market yield of prime European government bonds. The CIRR is published on the OECD website and is valid from the 15th of a month to the 14th of the following month.
CIRR

Clearing

Clearing is the determination of mutual claims and liabilities in financial transactions. In the clearing process, the delivery and payment of claims from securities transactions are settled centrally. This reduces the number of transactions required.

Collection

Debt collection is the collection of receivables. In the securities industry, this means that the equivalent value of the maturing securities of coupon and principal payments is requested by the respective paying agent.

Collective Custody

In collective custody, securities of the same category are held by custody account holders - at CSD.Austria itself or with one of its custodians. This means that there are no physical ownership certificates. As a holder you have a share of the collection, which can be proven by a deposit slip.

Company Pension Funds

Company pension funds are those that are established by a company or group exclusively for its own employees. In contrast, intercompany pension funds are open to the employees of various companies.

Competitive Bidding

A competitive bid in the government bond auction process consists of the price and nominal amount. The bidder is prepared to acquire the nominal amount at the offered price.

Concessionality level

The concessionality level indicates how cheap a loan is when compared to loans issued at the market rate. This measure is important in the case of "soft loans" ("development aid credit"), for which the OECD arrangement requires a basic degree of benefit of at least 35%, and at least 50% in the least developed countries.
More information can be found here: Soft Loans – Development Aid Loans

Contract Guarantee

A contract guarantee covers the risk of defects.

Consultation Procedure

The Member States of the European Union have undertaken to comply with Community standards in transactions covered by public support. Deviations from these standards must be reported to the other Member States and to the Commission in the framework of the EU consultation procedure.
Find out more here: International Frameworks

Corporate Action

The term "corporate action" designates all company events. These include obligatory capital measures, such as stock splits and mergers; voluntary capital measures, such as subscription rights and exchanges; as well as income and repayments and the Annual General Meeting.

Country Cover Policy

Our country cover policy serves as a guide for existing coverage options on a country by country basis.
Coverage guidelines can be downloaded here: Country Information

Coupon

The term coupon denotes the interest or dividend coupon of a security that entitles the holder to receive the income due or exercise other rights (subscription rights).

Coverage

The part of a security in which the share or claim right is securitized. The coverage is supplemented by a coupon or dividend coupons.

Coverage Ratio

The coverage ratio indicates the extent of the export guarantee coverage and is an expression of the risk assessment of a customer’s country (political coverage ratio), or of the foreign contractual partner/guarantor (economic coverage ratio). It is determined by the amount of the fixed deductible (for example, 5% deductible = 95% coverage).
Coverage ratios can be viewed here: Country Information

CRD IV (Capital Requirements Directive)

CRD, or "Capital Requirements Directive", is the European directive for the implementation of the Basel III regulations.

Credit Analysis

A credit analysis is used to assess the creditworthiness of a debtor. Creditworthiness refers to the ability and willingness of a debtor to repay their debts.

CSV

CSV is a file format in which the entries within a data record are separated and stored column by column with defined characters (such as commas or semicolons). The format is particularly suitable for the simple exchange of data in a table structure. Other common formats for data exchange are TXT, and XML.

Custodian Bank/Depository Bank

A custodian bank is authorized to hold custody and administration of securities for others.

Custody

Custody is any administrative activity that can occur as part of a security cycle. These include income-related tasks such as: interest due and dividend payments, capital repayments, capital measures, capital increases, or stock splits.

D

Data Vendors

Data vendors are companies that pass on current, professionally prepared price and market data, as well as other financial information, to capital market participants (other vendors, professional investors and private investors) for a fee.

De Minimis Projects

Projects with a value below two million SDRs (special drawing rights) are referred to as "de minimis projects".

Depository

Custodian of securities.

Derivative

Derivatives are financial instruments whose value or price depends on an underlying asset (such as securities or commodities). Derivatives are, in principle, contracts in which two parties agree to buy, sell or exchange one or more items at specified conditions in the future. One speculates on making a profit from the change in price compared to the underlying asset.

Disclosed Purchase of Accounts Receivables

In the case of a disclosed purchase of accounts receivables, the principal bank buys the outstanding receivables from an importer and thereby assumes the risk of default. An open receivable purchase is when the customer knows that the receivables against then have been sold to a bank.
See also: Sale of Receivables

E

EACH (European Association of CCP Clearinghouses)

EACH, "European Association of CCP Clearing Houses", was founded in 1992 by the European Central Counterparty Clearing Houses and represents the interests of European counterparties. The members specialize in clearing and risk management of European CCPs inside and outside the EU.
EACH

ECA (Export Credit Agency)

ECA is the acronym for "Export Credit Agency". OeKB is the ECA in Austria. On behalf of the Republic of Austria, it assigns export liabilities and implements the Export Financing Scheme (EFV).

ECSDA (European Central Securities Depositories Association)

The European Central Securities Depositories Association, ECSDA, is the Association of Securities Depositaries in Europe. ECSDA is a European organization that aims to harmonize cross-border securities transactions.

Equity Financing

Equity financing is the financing of shares or assets and other investments. This is a form of self-financing, whereby the financial resources are supplied from the outside as equity or as a shareholder loan.
How we support foreign investments can be found here:
Financing of Foreign Investments

EURIBOR (Euro Inter Bank Offered Rate)

The EURIBOR, "Euro Inter Bank Offered Rate", is an interest rate determined for term deposits (time deposits, fixed deposits) in euros, which is charged between banks. This interest rate is quoted daily by representative banks (EURIBOR panel banks), which are characterized by their active participation in the euro-money market. When quoting, the highest and lowest values are omitted (15% each).
EURIBOR Panel Banks

EXAA (Energy Exchange Austria)

The Energy Exchange Austria (EXAA) is the Austrian energy exchange. The OeKB performs financial clearing, risk management and credit checks for the EXAA.
EXAA

F

Financial Non-viability

The condition for a soft loan (development aid loan) is that the project is financially unsustainable. This means that it cannot afford the credit on its income, as is the case, for example, with a public hospital (as opposed to a private hospital). For soft loans, this financial non-sustainability is checked with the First Key Test.
Read more about soft loans here:
Soft Loans – Development Aid Loans

First Key Test

A two-step process is used to determine if a project qualifies for a loan. The first step is the "First Key Test", which assesses whether or not a project is financially viable. The condition for a soft loan (development aid loan) is that the project is financially unsustainable. This means that it cannot afford the credit on its income, as is the case for example with a public hospital (as opposed to a private hospital).
Read more about soft loans here:
Soft Loans – Development Aid Loans

FISN (Financial Instrument Short Name)

FISN is an internationally standardized abbreviation for financial instruments and issuers. The FISN is intended to significantly reduce the time and effort involved in the laborious shortening of issuer and product names, and to ensure a consistent worldwide presentation.

FIX (Financial Information eXchange)

The Financial Information eXchange (FIX) protocol includes a set of messaging specifications for the electronic communication of trading messages and is used for the standardized exchange of information. It was developed through the collaboration of banks, broker-dealers, stock exchanges, industry utilities and associations, institutional investors and information technology providers from around the world.

Tied Aid Loans

Tied aid loans are development aid loans that are tied to exports from the respective donor country.
Learn more about development aid loans here:
Soft Loans – Development Aid Loans

Foreign Shares

Export guarantees are intended to support the Austrian export industry and should benefit the Austrian value chain. Nevertheless, a certain proportion of supplies and services of foreign origin can be co-insured. This includes, in particular, "local costs" incurred locally and "supplies or services from third countries" which the Austrian exporter or their customer purchases.

Framework Agreement

In the context of soft loans, framework agreements are agreements on financial cooperation with selected soft-loan countries. The framework agreement is concluded between the Government of the Republic of Austria, represented by the Federal Minister of Finance, and the respective partner country. Such framework agreements are normally valid for a period of two years.

FundsXML

FundsXML is an XML application that is open, i.e. free of charge, with a freely usable data format for the internationally standardized exchange of fund information.

Futures Market

On the futures market, the supply and demand of futures are traded. The parties must fulfil completed transactions at least three trading days after the conclusion of the transaction in a fixed period. Trades with a shorter settlement period are assigned to the spot or cash market.

G

Global Certificate

The total issuance of securities of the same category is kept in a single instrument, the Global Note or the Global Certificate, which simplifies administration and safekeeping. The rights of the various investors are evidenced in this global certificate, there is no right to individual certificates.

Government Bonds

Government are fixed-rate securities issued the Republic of Austria. They are usually denominated in euros, listed on the stock exchange, and currently have terms of one to 100 years.

Grants

A grant is a non-repayable sum of money.

Guarantee Premium

The guarantee premium is a proportionate fee for guarantees based on the type and scope of the covered risk. The minimum amount is specified by OECD rules.

Guiding Principles of the Berne Union

The general guidelines to which the members of the Berne Union have committed themselves are laid down in the Guiding Principles.
Download “The Guiding Principles of the Berne Union”

OeKB is a member of the Berne Union. Find out more about memberships in international institutions here:
International Framework

H

HIPC Countries

HIPC is the acronym for "heavily indebted poor countries". The World Bank keeps a list of HIPC.

I

IFIs (International Financial Institutions)

IFI is the abbreviation for "International Financial Institutions". This includes:

  • World Bank
  • Regional development banks and funds
  • International UNO Fund for Agricultural Development (IFAD - International Fund for Agricultural Development)

IFIs assist developing countries to raise capital and acquire knowledge to drive their development process. Due to country risk, developing countries have little opportunity to raise sufficient funds on the open market.

Inter-company Pension Funds

Inter-company pension funds are pension funds that save, invest and pay company pensions for employees of different companies. This is in contrast to company pension funds, which manage the pension capital for the workforce of a single company.
Pension Funds

Interest Coupons

An interest coupon is the section of a security that entitles you to redeem interest.

Investment and Risk Sharing Group (VRG)

An investment and risk sharing group (VRG) is an administrative unit in a pension fund in which the pension accounts of the beneficiaries are maintained. Each pension fund contract is incorporated into a specific VRG according to its contractual parameters. All pension fund contracts, and therefore the money of all beneficiaries, are assessed in a VRG according to a uniform investment strategy with common investment opportunities and risks.

ISIN (International Securities Identification Number)

The International Securities Identification Number (ISIN) is a twelve-digit combination of letters and numbers that makes each security uniquely identifiable throughout the world. An ISIN consists of a country code prefix (e.g. AT for Austria), the base number, and the check digit.
In Austria, this International Securities Identification Number is assigned by the OeKB as the "National Numbering Agency". You can also design your ISIN as you wish or reserve it in blocks.
More about ISIN can be found here:
ISIN Assignment
ISIN Index

Issuer

An issuer is a company or corporation that issues securities to raise capital. These include, for example: federal governments, state or provincial governments, credit institutions, industrial companies.

K

Kontrollbank Credit Line (KCL)

The Kontrollbank-Refinanzierugsrahmen (KRR in German), provides companies with access to low-interest framework loans for the working capital financing of their export business. On the basis of a bill of exchange guarantee, we deduct up to 80% of the credit risk from the principal bank.
More information is available here:
Framework Loans for Large Companies (KRR)
 

L

LEI (Legal Entity Identifier)

The LEI is a 20-digit alphanumeric identification number and serves as a globally unique reference code for all legally independent entities, such as companies and funds. As of 3 January 2018, the LEI is mandatory for many companies and funds.
Find out more about our LEI service (in cooperation with our partner WM Datenservice) here:
LEI Service

Letter of Credit

A letter of credit is a payment instrument agreed between an exporter and an importer. The importer's bank undertakes to provide the stipulated amount by submitting the required documents. The exporter then receives their payment independently of the importer.

Letter of Credit Confirmation

With a letter of credit confirmation, a domestic bank, usually the exporter's house bank, assumes the obligation to pay the letter of credit, thus relieving the exporter of the risk that the foreign bank cannot pay for economic or political reasons.
More about letters of credit

Letter of Intent

We reserve projects with a "Letter of Intent" (LOI), which confirms that we can protect your project in principle.

M

Marketable Risks

Marketable risks are economic and political risks of debtors and guarantors in all EU countries and the OECD countries: Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland and the USA, with a risk duration (production period and repayment term) of less than two years. Marketable risks are insured by private credit insurance.
Private Credit Insurance

Master Data and Appointment Data

Master data is basic static security data such as the name of the issuer or the security name. Appointment data is dynamic securities data such as the exchange ratio or a variable interest rate.

Mixed Credit

A "mixed credit" is a financing package consisting of a non-repayable grant from the Federal Ministry of Finance and a soft loan.

Multi-source Project

Large projects often involve suppliers from different countries. In these multi-sourcing projects, the risk is covered or financed by international cooperation between export insurers and financial institutions.

N

Netting

In the case of securities transactions settled via a central counterparty, delivery and payment obligations are continuously offset. By offsetting the offsetting receivables against a "net position", the number of securities transactions to be settled is significantly reduced. This process is called netting.

No-par Share

A no-par-value share is a share that is issued with no par or face value, i.e. it has no stated nominal value. Each individual share of a company represents exactly the same share of the capital stock. In contrast, par value shares may have different denominations and thus reflect different sized shares in a company.

Nominal Value

The nominal value of a security, or bond, shows the amount that constitutes the basis for the interest and the amount of the holder's claim against the issuer in the event of repayment. For shares, the nominal amount defines the amount by which the shareholder participates in the nominal share capital of the stock corporation.

Non-competitive Bidding

Twenty percent of the issue volume of a federal bond is offered to the auction participants in a non-competitive process. The price equals the average rate of the competitive allotments. The claim of the individual auction bank is based on the weighted average of the competitive allocations (in percentage) of the previous two auctions and on established secondary market criteria.

Non-marketable Risks

A marketable risk in a country outside the EU and the OECD that lasts less than two years (see marketable risk). All other risks are considered non-marketable and can be covered by government credit insurance.
Further information can be found on the following pages:
Country Information
Private Credit Insurance

O

OECD Arrangement on Officially Supported Export Credits

The OECD Arrangement is an agreement at the governmental level to prevent distortions of competition resulting from state support for export credits. It regulates publicly supported insurance, guarantees, direct export credits or refinancing with maturities of at least two years as well as tied auxiliary loans. The arrangement is legally binding for the member states of the EU.
Further information on the OECD Arrangement can be found here:
International Conditions

OECD Country Category

The OECD classifies countries for political risk insurance for medium and long-term export credits in categories from 0 (low risk) to 7 (high risk). This risk assessment is based on the minimum premium, which is binding for all OECD export credit agencies.
These classifications can be found on this page:
Country information

OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises are government recommendations for responsible and lawful business conduct in foreign activities. They include social responsibility, disclosure of information, industrial relations, the fight against corruption, environmental protection, consumer interests, science and technology, competition and taxation.
OECD Guidelines for Multinational Enterprises (OECD website)

OeMAG

OeMAG is the Austria-wide processing center for subsidized green electricity. OeMAG's tasks include the acceptance of green electricity from plant operators, the daily allocation of green electricity to electricity traders and the offsetting of green electricity subsidies.
OeMAG

OTC

OTC is the acronym for "over the counter" and refers to over-the-counter trading between capital market participants.

P

Par Value Share

The par value share (or per value share) represents a share of the share capital of a stock corporation over a fixed nominal value. Par value shares of a company may have different denominations, while no-par value shares all have the same share in a company.

Paying Agent

Paying agents are banks that handle all the ongoing transactions of a security, such as the redemption of dividends and interest coupons due.

Pension Funds

Pension funds are financial service providers that implement pension commitments on behalf of companies. Under state supervision, they ensure that company pensions are saved and paid out as an important second pillar of the Austrian pension system. This supplementary pension is not financed according to a pay-as-you-go system, but is saved individually for each beneficiary or beneficiary under a capital cover system. The paid-in capital is invested, under state supervision, on the capital markets.
Pension Funds

Performance

In the financial sector, performance refers to the performance of invested assets over a given period of time. This performance is calculated using standardized methods.

Physical Securities

A single instrument identifies existing securities that are presented in printed documents. In contrast to collective and interim collection certificates that are stored centrally.

Performance Bond

A performance bond is a surety bond that covers the risks of a contract not being fulfilled.

Pre-mixed Credit

A "pre-mixed credit" is a soft loan equal to 100% of the project value to be funded. The "Pre-Mixed Credit" is characterized by a low, government-supported interest rate, a grace period and a long repayment period.
Detailed information on soft loans can be found on this page:
Soft Loan (Development Aid Loan)

Preliminary Commitment

A preliminary is a conditional commitment to give a guarantee for a deal that is still under negotiation. This commitment contains the basic terms of the future guarantee and has already been audited by the OeKB and approved by the Advisory Board. If neither the terms of the contract nor the classification of the destination country worsen during the negotiations, the preliminary commitment will be converted into a guarantee upon conclusion of the contract without further request or examination.

Promissory Note

A written promise made by the issuer of a bill to pay the amount owed to the holder of the bill at an agreed upon time.

R

Record Date

The record date is the decisive date for a shareholder to exercise their voting rights at the Annual General Meeting. A shareholder is a person who has provided proof of shareholding on the record date. In Austria, the record date is the 10th day before the day of the Annual General Meeting.

Registered Security

A registered security is a security that is held in the name of the shareowner. The opposite of this is a bearer security.

Revolving Credit Facility

In the case of revolving financing, refinancing funds may be used on a revolving basis during the term of the contract - also in instalments. Revolving means that funds already repaid within the granted credit line can always be reused.

S

Second Key Test (Availability of Funds)

The "Second Key Test" is an instrument in soft loan allocation, which will be used to determine if financing would be available on commercial terms for the project in question in other OECD countries. If this is not the case, a project qualifies as a soft loan. Prior to this test, the first key test is performed to assess whether or not a project is soft loan eligible.

Securities

Securities are instruments in which private rights to assets are securitized. These rights are tied to certifications. Documentation must therefore be submitted to assert them.

Settlement

Settlement is the fulfilment of securities transactions in the form of money and units by booking on the securities account. It is the act in which the custodian of the transferor and the custodian is charged or recognized. Settlement takes place after clearing.

Share Split

In a share split, the outstanding shares of a company are replaced by a higher number of new shares. As the number of shares increases, the price of the stock is reduced.

Silent Purchase of Receivables

In the case of a purchase of receivables, the principal bank buys outstanding receivables from the importer and thereby assumes the risk of payment default. A silent purchase of receivables is when the customer is not informed that the claims against him were sold to a bank.
See also:
Securitization

Soft Loan

Soft loans (or concessional loans) are financings that have a concessionality level of at least 35% and are made available to Austrian companies for projects in developing countries.
Further information on soft loans can be found here:
Soft Loan (Development Aid Loan)

Solvency

Solvency refers to the extent to which banks and insurance companies are provided with funds (equity). The higher the solvency, the better the customer's payment claims are secured.

Special Drawing Right (SDR)

Special Drawing Right (SDR) is an international means of payment created by the members of the International Monetary Fund (IMF) in 1969. As a kind of artificial currency, SDRs are cashlessly transferred to IMF accounts. SDRs are part of the currency reserves of a country and can be exchanged for other currencies. However, they are not traded on the foreign exchange market. If there is a need for additional liquidity, the IMF Board of Governors can allocate further SDRs to the member states. Based on a currency basket of determinable weighted shares of relevant world currencies, the value of the SDR is re-calculated daily and published on the IMF's website.
IMF

Spillover Effects

Spillover effects describe positive or negative effects of a sales, company or economic policy tool beyond the specified target range.

Spot Market

On a spot market (also cash market), the supply and demand of commodities and cash meet. A mutual fulfilment period of up to three trading days is usual. Everything beyond that is added to the futures market

Starting Point

The term "starting point" denotes the beginning of something, for example the beginning of a loan term.

Stock in Commission

Stock in commission is the stock of an exporter abroad.
Find out how to insure your stock in commission abroad here:
Stock in commission Guarantee

Stock Rescheduling

Stock rescheduling refers to the new regulations on total debt, as it occurs in special rescheduling cases according to the Paris Club.
More about the Paris Club can be found on this page:
International Framework

Straight Through Processing (STP)

STP is the acronym for "Straight Through Processing" and is a concept of automated data processing. With STP in use since the 1990s, money and securities transactions can be processed and completed on the same day.
The straight-through processing rate (STP rate) indicates how much of a process's transactions can be processed fully automatically. Increasing the STP rate leads to improved efficiency as manual process steps decrease.

Strip Programme

During stripping, interest coupons are separated from the investment wallet (nominal value) of a bond. Subsequently, the coverage and the individual interest coupons can be traded separately as zero bonds (Zero Coupon Bonds).
Find out more here:
Strips

Supplier Credit

Supplier credit means the term of payment that a seller grants to a buyer. A supplier credit is also referred to as a trade credit or a commercial credit.
See more here:
Supplier Credit

Sustainable Lending

Sustainable Lending is publicly supported export credits that should be allocated responsibly and contribute to the sustainable social and economic development of the recipient country. To strengthen this idea, the OECD Export Credit Group has adopted principles and guidelines for the award of publicly supported export credits to public purchasers in low-income countries.
Principles and Guidelines: Sustainable lending

SWIFT

SWIFT stands for "Society for Worldwide Interbank Financial Telecommunication" and is a cooperative that develops and operates a standardized, secure system for exchanging financial information. Since 1973, SWIFT has also operated in the telecommunications network through which financial news is encrypted.
We offer our customers professional SWIFT services. More information can be found here:
SWIFT Services

T

Temporary Global Certificate

A temporary global certificate is a security that temporarily represents equitable securities of the same category according to their terms. There is no entitlement to individual certificates. Intercompany deeds simplify administration and safekeeping.

Tender Award

A "Tender Award" is when a company has been awarded a contract for a tendering process. Tender procedures are of particular importance for the allocation of soft loans and projects financed by IFIs.
Find out more here:
Soft Loan (Development Aid Loan)

Third Country Share

The term “third country share” refers to supplies or services delivered by third countries. From an Austrian point of view, third countries are all countries except the destination country and Austria. Export liabilities are, essentially, intended to support the Austrian economy. Therefore, foreign shares may not exceed a certain level.

TXT

"TXT" is a file format for text files. TXT files consist of a sequential sequence of displayable characters, which can be subdivided by control characters such as line and page breaks. Other common formats in data exchange are CSV and XML.

U

By "Up-front" we mean the payment of the guarantee fee in advance. The fee will already be paid in full at the issuing of the export guarantee.

V

Volatility

Volatility refers to the fluctuation range of a price development. It is a risk indicator that shows the intensity with which a financial investment fluctuates over a certain period of time.
In the case of pension funds, the volatility is only shown when 36 observation months have been reached.
The volatility of pension funds and other key figures can be found here:
Key Pension Fund Figures

W

Weighted Average Life (WAL)

The weighted average life (WAL) of a loan is calculated based on its maturity and repayments. The weighted average maturity is the calculated period during which the entire loan has not yet been repaid.

Weighted Average of Competitive Prices

In federal auctions, the bids in the competitive process differ by the amount and volume offered. The weighted average of competitive prices takes into account both parameters.
Find out more about federal loan auctions here:
Federal loan auctions for the Republic of Austria

X

XML (Extensible Markup Language)

XML is the acronym for Extensible Markup Language and refers to a machine-readable file format that contains hierarchically structured data in a text file and has significance in automated data exchange. Other popular formats are TXT and CSV.
 

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