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FCRS GLOSSARY


A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

A

Actual Debt Service is the set of repayments actually made to satisfy a debt, including principal, interest, and late fees (income stream).

Amount Due the USG, Total  includes principal outstanding, interest and fees in arrears one day or more on direct loans; claims on guaranteed loans; and insurance claims outstanding one day or more.

Arrears  represents the failure of a borrower to pay an obligation by the payment due date. Generally applies to due and unpaid amounts of principal and interest, late interest charges, and late fees for direct loans and claim payments.

B

Borrower See "obligor"

C

Claim  is an assertion of a right to payment. A lender may file a claim to assert its right to that portion of the unpaid balance due on a defaulted loan which is guaranteed or insured by the Government or to the remaining portion of a guarantee not already recovered by a lender.

Claims Outstanding  equals the amount of claims paid by the USG to private lenders on guaranteed loans or through insurance agreements which were defaulted on by foreign borrowers and which have not been recovered from the borrowers or foreign guarantor for one day or more.

Commercial Risk  is the risk of nonpayment by a non-sovereign or private sector buyer or borrower arising from default, insolvency, and/or failure to take delivery of goods that have been shipped according to the supply contract

Commitment a budgeted or other authorized amount that may be disbursed under a contract. See contract.

Contract  A contract is term used in the context of the Foreign Credit Reporting System, and refers to an individual agreement made by an agency of the U.S. Government to extend credit. The Contract Type is used to distinguish the different types of credits reported by FCRS. The different Contract Types are: See credit .

Credit  any amount for which there exists a specific obligation for repayment. Includes loan and other transfer agreements which give rise to specific obligations to repay over a period of time, usually with interest. May include grants, but only where reference is to "tied aid credits," as defined by the OECD Arrangement on Officially Supported Export Credits.

Creditor/Lender  is one who provides money or resources and to whom payment is owed, including the USG, Federal agencies, or private financial institutions, under a specific credit agreement.

D

Debt  refers to an amount of money or property that has been determined to be owed to the U.S. Government from any person, organization, or entity, other than another Federal agency. It includes amounts owing on direct and guaranteed loans, and all other amounts due the U.S. from fees, duties, leases, rents, royalties, services, sales of goods or services, overpayments, fines, penalties, damages, interest, taxes, forfeitures, and other sources.

Debt Relief or Reorganization  is any action by a creditor that officially alters established terms for repayment. Debt reorganization includes forgiveness, rescheduling, rephasing, and refinancing.

Debt Service 
  • Actual is the set of repayments actually made to satisfy a debt, including principal, interest, and late fees (income stream).
  • Scheduled is the set of repayments which is contractually required to be made through the life of the debt, including principal and interest.
  • Default  is the failure to meet any obligation or term of a credit agreement, grant or contract. A payment that is overdue or in arrears is technically "in default," since, by virtue of non-payment, the borrower has failed to abide by the terms and conditions of the credit. In practical terms, when a guaranteed loan or credit is considered "in default" will vary by agency.

    Direct Loan  is an obligation created when: the Government agrees to disburse funds to and contracts with the debtor for repayment, with or without interest; a Federal agency purchases non-Federal loans through secondary market operations; or an agency sells assets on credit terms.

    Disbursement  occurs when a creditor places resources, such as goods or funds, at the disposal of a borrower through a cash payment or creation of a line-of-credit and the borrower draws upon it. The term "utilized" may be used when credit extended is other than currency. "Expended" and "disbursed" can be used interchangeably.

    Dollar Equivalent is the unit of valuation for transfers occurring or balances existing in currencies other than U.S. dollars.

    E

    Exposure  see "Foreign Credit Exposure."

    F

    Foreign Credit Exposure  is the maximum financial amount the USG has at risk as a consequence of: USG agencies' long-term foreign loan and loan guarantee programs, insurance of US private lending and investment abroad, and other financial commitments involving foreign governments, other foreign official entities, and foreign private entities. Foreign credit exposure is measured as: The sum of the amounts of principal outstanding and interest and fees in arrears one day or more on direct loans, claims outstanding one day or more arising from payments under guarantee and insurance contracts, contingent liability on guarantee contracts, and maximum contingent liability on insurance contracts.

    Foreign Credits Outstanding  is measured as the sum of the amounts of principal outstanding and interest and fees in arrears one day or more on direct loans; principal outstanding and claims outstanding one day or more on guaranteed loans; and insurance claims outstanding one day or more. Does not include maximum contingent liability on insurance coverage.

    G

    Guarantee of a Loan   is a legally binding agreement to pay part or all the amount due on a debt instrument extended by a lender in event of nonpayment by the borrower.

    H

    I

    Insurance  is a legally binding agreement to insure exporters, investors, and lenders against specific risks during specified periods. Export-Import Bank insurance covers commercial and political risks of nonpayment of export obligations. Overseas Private Investment Corporation insurance covers transfer and political risks associated with foreign investments.

    Insurance, Total amount  includes the maximum contingent liability (including disbursed and undisbursed amounts) under a USG insurance program and the amount of insurance claims outstanding one day or more.

    Interest/Fees Outstanding  is interest in arrears, penalties, fines, and administrative charges associated with an original amount classified as "principal outstanding". It does not include normal interest coming due during the life of the loan.

    J

    K

    L

    Loan  is a legally binding document that obligates a specific value of funds available for disbursement. The amount of funds disbursed is to be repaid (with or without interest and late fees) in accordance with the terms of a promissory note and/or repayment schedule.

    Long-term  refers to loans, guarantees, or insurance contracts with an original or extended maturity of more than one year.

    M

    N

    O

    Obligor  obligors must be classified as to "official" or "private". See definitions of each below.

    Official Development Assistance (ODA)  flows to developing countries and multilateral institutions provided by official agencies, including state and local governments, or by their executive agencies, each transaction of which meets the following tests:
    • it is administered with the promotion of the economic development and welfare of developing countries as its main objective and
    • it is concessional in character and conveys a grant element of at least 25 percent.

    Official Obligor  a borrower or guarantor who falls into one of the following categories:
    • Central governments or their departments (ministries).
    • Political subdivisions such as states, provinces, departments, and municipalities.
    • Foreign central banks.
    • Autonomous institutions (such as corporations, development banks, railways, utilities, etc.) where:
      • i. the budget of the institution is subject to the approval of the government of the recipient country;
      • ii. the government owns more than 50 percent of the voting stock or more than half of the members of the board of directors are government representatives;
      • iii. in the case of default the government or central bank would become liable for the debt of the institution.
    • Any official multinational organization.

    P

    Paris Club  is an informal group of financial officials from 19 of some of the world's biggest economies, which provides financial services such as debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors. Debtors are often recommended by the International Monetary Fund after alternative solutions have failed.

    Political Risk  is the risk of nonpayment by a non-sovereign or private sector buyer or borrower arising from events beyond the control of the buyer, caused by government action, such as: political violence, i.e. war; government intervention; cancellation of an export or import license; transfer or inconvertibility risk, i.e. the inability to purchase U.S. dollars in a legal market.

    Principal Outstanding  is the amount disbursed and not repaid which includes principal amount in arrears.

    Principal Outstanding on Direct Loans  is all principal that has been disbursed and has not yet been repaid, whether in arrears or scheduled for future payment.

    Principal Outstanding on Guarantees  is the amount of principal that is outstanding on loans from private lenders guaranteed by the USG, regardless of the percentage of the loan covered by the USG guarantee.

    Private Obligors  are any borrowers or guarantors other than those specified as official.

    Q

    R

    Repayment Agreement  between borrower and lender, establishes the terms and conditions governing the recovery of a debt.

    Rephase  is changing the terms of credit/repayment (extending maturing period), where the creditor and borrower develop a revised repayment schedule for interest and principal and where each credit retains its identity while the creditor remains unchanged.

    Reschedule  an OECD term for the extinguishing of debt owed under all or part of existing credits and the creation of a new and separate credit or credits, which normally in the aggregate are of volume equal to the amount of the total debt being extinguished. Rescheduling normally is done in connection with facilitating repayment, although it is not required.

    • Multiple rescheduling occurs whenever debt owed under all or part of more than one existing credit is extinguished under a single rescheduling action, whether or not a single new credit results.
    • It is also a Paris Club term for a form of debt reorganization in which scheduled debt service payments falling due in a specific interval are consolidated, resulting in a new credit with a new payment schedule.

    Reductions  are amounts forgiven under legislative authorization or international treaty. Includes total amounts forgiven or written-off, not merely associated subsidy amounts.

    S

    Scheduled Debt Service  the set of repayments which is contractually required to be made through the life of the debt, including principal and interest.

    Short-term  refers to loans, guarantees, or insurance contracts with an original maturity of one year or less.

    Sovereign  Sovereign transactions are obligations entered into by the state. They may carry the "full faith and credit" of the central government. These often include transactions guaranteed by the Central Bank, Treasury, or Ministry of Finance. On a country by country basis, other institutions may also be designated, by law or by custom, as sovereign institutions, acting as on behalf of the state.

    T

    Total Arrears  includes principal, interest, and fees in arrears one day or more on direct loans.

    Total Foreign Credits Outstanding  includes principal outstanding, interest and fees in arrears one day or more on direct loans; principal outstanding and claims outstanding on day or more on guaranteed loans; and insurance claims outstanding one day or more. Does not include maximum contingent liability on insurance coverage.

    Total Insurance  includes the maximum contingent liability (including disbursed and undisbursed amounts) under a USG insurance program and the amount of insurance claims outstanding one day or more.

    Total USG Exposure  includes principal outstanding, interest and fees in arrears one day or more on direct loans; the percentage of principal on guaranteed loans that is guaranteed (both principal outstanding and undisbursed principal); claims outstanding one day or more on guaranteed loans; maximum insured amount on insurance contracts; undisbursed insurance principal; and insurance claims outstanding one day or more.

    U

    V

    W

    Write-off  occurs when an authorized official determines that a debt will not be repaid. Statutory authority may be required to write off debts owed by foreign governments (see Forgive and Reductions).

    X

    Y

    Z