English

One of the convergence characteristics defined in Article 104 (2) of the TEC. The debt ratio is defined as “the ratio of government debt to gross domestic product at market prices.” More detailed definitions…

The process of extending the repayment schedule, attached to one or all of the financing arrangements entered into, by a company or public sector entity. – By comparison, restructuring usually has a deeper impact,…

The process of extending the repayment schedule, attached to one or all of the financing arrangements entered into, by a company or public sector entity. – By comparison, restructuring usually has a deeper impact,…

Debt Redemption Fund], European (European Redemption Pact, ERD): institution proposed by the German Council of Economic Experts in January 2012, in which EMU members contribute most of their government debt, for twenty-five years. The…

Debt Redemption Fund], European (European Redemption Pact, ERD): institution proposed by the German Council of Economic Experts in January 2012, in which EMU members contribute most of their government debt, for twenty-five years. The…

Unless otherwise defined, in Germany today a file in which claims against the state are recorded. As a rule, federal government debt is not issued as a deed. Rather, the creditor is entered in…

Unless otherwise defined, in Germany today a file in which claims against the state are recorded. As a rule, federal government debt is not issued as a deed. Rather, the creditor is entered in…

A public bond is not securitized, but the creditor is entered in a debt register. In Germany, debt registers are subject to statutory debt register secrecy, which is basically the same as banking secrecy.…

A public bond is not securitized, but the creditor is entered in a debt register. In Germany, debt registers are subject to statutory debt register secrecy, which is basically the same as banking secrecy.…

Unless otherwise defined, this refers to the reduction or complete repayment of the proportion of borrowed capital in a company. The use of borrowed capital is basically only advantageous as long as the return…

Issuers of bonds – in practice: in economically unstable countries – build in provisions at the time of issuance that allow private security creditors to act collectively in the event of default. This is…

Issuers of bonds – in practice: in economically unstable countries – build in provisions at the time of issuance that allow private security creditors to act collectively in the event of default. This is…

Period in which a large number of borrowers terminate loans they have taken out and take out new loans on more favorable terms. This always happens when interest rates have fallen (period in which…

Period in which a large number of borrowers terminate loans they have taken out and take out new loans at more favorable terms. This always happens when interest rates have fallen (period in which…

Debt capital with a maturity usually between 30 and 270 days from the date of issue. Such short-term bearer bonds are issued by companies with a good credit rating (debt securities in the form…

Debt capital with a maturity usually between 30 and 270 days from the date of issue. Such short-term bearer bonds are issued by companies with a good credit rating (debt securities in the form…

Unless otherwise defined, the ongoing payments of interest and principal on an asset acquired on credit (the payments of principal and interest by a borrower to a lender). – See debt sustainability, debt instruments.…

Unless otherwise defined, the ongoing payments of interest and principal on an asset acquired on credit (the payments of principal and interest by a borrower to a lender). – See debt sustainability, debt instruments.…

A ratio, particularly common in real estate, that relates net income from a property to the debt service costs incurred (annual debt service as a percentage of net yield). Attention: The financial encyclopedia is…

A ratio, particularly common in real estate, that relates net income from a property to the debt service costs incurred (annual debt service as a percentage of net yield). Attention: The financial encyclopedia is…

Unless explicitly defined otherwise, this is the ratio of cash flow to a company’s debt service (the amount of cash flow available to meet annual interest and principal payments on debt, including potential sinking…

Unless explicitly defined otherwise, this is the ratio of cash flow to a company’s debt service (the amount of cash flow available to meet annual interest and principal payments on debt, including potential sinking…

For general government, the ratio of debt service to expenditure. The ratio indicates how the spending margin has already been narrowed by borrowing in previous periods. – See net creditor, debt-debt ratio, debt ratio,…

For general government, the ratio of debt service to expenditure. The ratio indicates how the scope for spending has already been narrowed by borrowing in previous periods. – See net creditor, debt-debt ratio, debt…

The ability of an economic unit (household, company, government) to service the loans it has taken out (the ability to fulfill the contractual debt service obligations). There are many templates and benchmarks that are…

The ability of an economic unit (household, company, government) to service the loans it has taken out (the ability to fulfill the contractual debt service obligations). There are many templates and benchmarks that are…

The time difference between – the completion of a longer-term investment and – the term of the loan used to finance this project. – The purpose here is to have a buffer in case…

In business transactions, the term for the fact that the debtor must perform at the creditor’s domicile. – In the information management of a company – for example: a bank – the duty of…

A derisive term for the eurozone that emerged after 2010 alongside the term debt club. Measures such as bailout funds, euro bonds, banking union or purchases of government bonds by the ECB, which are…

A derisive term for the eurozone that emerged after 2010 alongside the term debt club. Measures such as bailout funds, euro bonds, banking union or purchases of government bonds by the ECB, which are…

The way recommended by some politicians and know-nots in the media to reduce a high national debt by taking on new debt. However, this would only be successful if – the newly borrowed money…

The way recommended by some politicians and know-nots in the media to reduce a high national debt by taking on new debt. However, this would only be successful if – the newly borrowed money…

In general, the conversion of loans granted to companies of doubtful creditworthiness into equity capital. – In particular, the purchase by a company of receivables denominated in convertible currencies such as USD or EUR…

The Debt-to-Equity (D/E) ratio is a financial leverage ratio that compares a company’s total debt to its total equity. It gives both investors and creditors an understanding of how risky a company’s financing strategy…

Short- to medium-term securities issued in relation to government debt – such as treasury bills, medium-term bills, promissory bills – that have not yet been definitively placed on the capital market. In contrast, debt…

Short- to medium-term securities issued in relation to government debt – such as treasury bills, medium-term bills, promissory bills – that have not yet been definitively placed on the capital market. In contrast, debt…

Loans taken out abroad by countries with non-democratically elected governments which the successor government refuses to service (servicing: interest and repayment). For investors, therefore, securities from dictatorial states (even those with favorable terms) are…

Loans taken out abroad by countries with non-democratically elected governments which the successor government refuses to service (servicing: interest and repayment). For investors, therefore, securities from dictatorial states (even those with favorable terms) are…

In older documents, a dungeon – not necessarily in the structural form of a tower – in which recalcitrant debtors (defaulters unwilling to pay) were imprisoned. The conditions of detention in the debtor’s dungeon…

In older documents, a dungeon – not necessarily in the structural form of a tower – in which recalcitrant debtors (defaulters unwilling to pay) were imprisoned. The conditions of detention in the debtor’s dungeon…

The distribution of a corporation’s profits to shareholders in the form of an extraordinary dividend or share buy-back from accumulated profits. – The (rapid) sale of parts of the assets – from experience mainly…

A term used in the course of the subprime crisis: – Banks in the USA grant loans for house construction and house purchase to almost everyone (sub-prime addresses), because they take hardly any risk,…

In old documents, a levy on leather. Decher = here: Number of ten pieces (skins) at the tanners or leather makers (Lederern; tanners). – See Lauergeld. Attention: The financial encyclopedia is protected by copyright…

The means of payment of a country or currency area are arranged according to the decimal system (100, 10, 1). – Until modern times, the sixties system (hex[adecimal] system) was widely used, which still…

In Europe, decimal places in monetary amounts are usually separated by commas, while in the USA they are separated by decimal points. – To avoid misunderstandings, central banks regularly place a gap between thousands…

In the wake of the subprime crisis and the resulting global financial crisis, the term used to describe the decision of a central bank or government to rescue a bank threatened with insolvency by…

Term used in financial market law in general and in connection with ad hoc disclosures in particular. Accordingly, information on the financial market is considered useful to an investor if he can draw conclusions…

Said on the stock exchange when an investor grants the broker to execute an order according to the broker’s professional judgment (freedom given to the broker by a client to use his professional judgment…

In connection with cash card transactions, the negative response to an authorization request from the card-issuing bank. An application authentication cryptogram is created and stored to filter out conspicuous card users. – See authorization,…

A discount to be granted by the seller in accordance with the contract if the price of the (financial) good already paid for and to be delivered at a fixed time has fallen sharply…

The view that the financial sector is increasingly developing independently of the real economy and is becoming independent, as it were; often judged as an aberrant development of an economic sector, as a typical…

An investor – usually a hedge fund – borrows securities selected by brokers – usually stocks or stock options – that he considers overvalued. He immediately sells them on the market in the hope…

The ability to reduce (income) tax liability by deducting items allowed by tax law from taxable gross income (the reduction in income tax that results from taking an allowable deduction from taxable gross income).…

The risk that – is not transferred to an insurer or that – insurance companies do not pass on to reinsurers or – the insurer or reinsurer contractually imposes on the policyholder and, as…

The risk that – is not transferred to an insurer or that – insurance companies do not pass on to reinsurers or – the insurer or reinsurer contractually imposes on the policyholder and, as…

In the language of German supervisory law, loans to related persons and institutions that are to be taken into account when determining a bank’s equity capital in accordance with Section 10 of the German…

In financial terms, the reduction – deduction – of a sum of money, thereby changing it from a gross amount to a net amount. – See discount, acquisition fee, termination fee, bank fees, brokerage,…

In financial terminology, generally the substantiated lowering of a sum expressed in monetary terms. – The withdrawal from a transaction, the withdrawal from a commitment or even from a country. – In particular, also…

Percentage, determined at the ECB, of the sum of debt securities issued with an agreed maturity of up to and including two years and of money market paper which may be deducted from the…

In the financial sphere, a document required when dealing with certain assets (a legal document used to transfer the legal ownership in some assets). – See manzipation, mortification, registered securities, certificate. Attention: The financial…

In the financial sphere, a document required when dealing with certain assets (a legal document used to transfer the legal ownership in some assets). – See manzipation, mortification, registered securities, certificate. Attention: The financial…

A document which transfers the ownership of an asset during a specified limited period of time. – See cession. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

A document which transfers the ownership of an asset during a specified limited period of time. – See cession. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

A bond with a coupon – the interest rate on the bond – that is significantly lower than the market rate at the time of issuance. The difference between the market interest rate and…

In general, a cessation, however caused, of a person’s or an object’s ability to perform a required task or service. – In the financial market, the failure to complete a funds or securities transfer…

In financial parlance, any failure of performance in a contractual relationship. – See default, default-loss, covenant, loan, revoked, delinquent, downgrade trigger clause, third-party due clause, third-party default clause, first-loss default clause, European Master Agreement,…

Bank-internal term for borrowers who do not repay their loan at all or not in accordance with the contract. – See probability of default, default, credit risk, borrowing power, default, delinquent, demarketing, collection, fraudulent,…

In older documents, a price obtained that is much too low from the seller’s point of view. – See market risk, price risk, loss. Attention: The financial encyclopedia is protected by copyright and may…

Generally, a financing technique in which – an amount of cash or of – first-class – paper is deposited, – from which the creditor can withdraw the interest from the loan granted (the borrower…

In the financial sector, shortfalls in the actual amount of cash or securities compared with the debit amount in the accounts. The main reasons for this are infidelity (fraud, embezzlement, forgery on the part…

In older documents, the process of finding any errors in invoices and determining the correct invoice amount. – See Defects. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In the case of takeover bids, the possibility for the company concerned to prevent the success of a corresponding bid. Because the rights of shareholders, banks and other market participants are also affected in…

In old documents, a levy, especially in the cities, to equip so-called Defensioner (local citizens as well as peasants from the surrounding countryside: a Landwehr team; territorial army) during the Thirty Years’ War (1618-1648).…

On coins, the mark of the place of minting or the master of the mint. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

In the event of exceptional circumstances, the bank waives the agreed payment date for a customer in connection with a loan; the loan must nevertheless be paid off in full and on the original…

In the event of exceptional circumstances, the bank waives the agreed payment date for a customer in connection with a loan; the loan must nevertheless be paid off in full and on the original…

A bank contractually grants the debtor the right not to start servicing the loan until some time later; in other words, no repayments and interest are due initially. Such tempting newcomer conditions were particularly…

In this case, the owner of a commodity or the producer of a marketable good immediately sells a quantity ordered but not to be delivered until later from his warehouse. At the same time,…

A common form of financing, particularly in the case of a company acquisition, whereby part of the agreed price does not have to be paid until after the acquisition by the acquirer (a payment…

Pay-as-you-go payment as wage indemnification (to indemnify = to compensate for damage or loss sustained) to employees who are unable to pursue their occupation due to weather conditions; in particular, bad weather allowance in…

In older financial language also said for a debtor. – See bankruptcy, insolvency, kraida. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University…

The condition of an economic unit where expenses exceed income (a situation for an economic unit where expenses exceed income). – The government spends more than it takes in (relating to general government: the…

The ECB may not grant any loans to governments or quasi-governmental entities in the EU, including by way of underwriting debt instruments. This is explicitly stated in Article 123 TFEU and in Article 21…

In the political arena, a term – usually derogatory – for someone who is a strong advocate of balancing the budget and strives to keep the national debt in check (colloquial term for politicians…

Fiscal policy convergence indicator under Art 104, para. 2 TEC, defined there as “the ratio between the planned or actual government deficit and gross domestic product at market prices.” The “Protocol on the excessive…

Deliberate, planned overspending of revenues in a public budget, i.e., intentional government borrowing. – In the past, many believed that this would allow an economy in a downturn to be brought back to full…

Corporations and the government that borrow savings from households (usually through the intermediation of banks). – See surplus units, savings mania. Attention: The financial encyclopedia is protected by copyright and may only be used…

The difference between the sum of the government deficit and the change in government debt, expressed as a percentage of gross domestic product. – See deficit propensity, default, control account, Minhas-Gerais problem, net creditor,…

Cash shortfall, deficit. – Shortfall in revenue: the inflow of money below the forecast (the EX-ANTE financial plan); said in this sense especially in public budgets in relation to the budget. – Shortage in…

Unless otherwise defined, in managerial accounting it means a payment that reduces the capital stock, such as repayment of a loan. – See outpayments. Attention: The financial encyclopedia is protected by copyright and may…

A – sustained decline in the price level and, unless otherwise stated: measured by the consumer price index – over a certain period of time, usually based on two quarters, – that becomes entrenched…

The price adjustment of economic data recorded by statistics, especially in the course of national accounting. Since 2005, gross domestic product in Germany has been deflated using the previous year’s price method, as has…

When people believe that prices are falling, they postpone planned purchases because they expect to be able to buy everything even cheaper soon. – This causes manufacturers’ warehouses to overflow. – They are forced…

A form of deflation in which a stagnating or barely growing economy is confronted with downwardly inflexible wages. – If companies’ sales decline nominally – i.e., evaluated at current prices – because consumer prices…

The fact that the price of what is perhaps the most important raw material today, namely information, has fallen steadily in recent decades. All goods that come into contact with digitalization are falling in…

A form of deflation in which – prices fall due to strong productivity gains in industry, – but demand cannot keep pace. – If this occurs in an environment of strong growth, firm asset…

A gradually intensifying bad deflation. – If – assets are worth less, – debts, on the other hand, have remained the same in nominal terms, i.e. valued at current prices, – then it is…

In older financial language often used for – embezzlement, misappropriation, embezzlement in general and – defraudation of customs: to import or export without paying lawful customs charges or duties, smuggling. Attention: The financial encyclopedia…

Said in older financial language – of a civil servant who heads a treasury in a public body (head of a treasury) and – the head of accounting in a company (head of the…