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Упражнение № 10. Read the following text and try to understand it.

The Russian Federation

Here are a few extracts from the booklet distributed among the par­ticipants of the seminar Trade Finance in the Transitional Economy of the Federation of Russia held in London in December 1997.

Scenario in the beginning:

1. High industrial capacity.

2. Absence of working capital.

3. «Violent» privatisation process.

4. High domestic interest rates.

5. Low availability of credit.

6. High inflation.

7. Intercorporate indebtedness.

8. The total of arrears in industry,                       R 723,1 tr

transportation, construction                                 27.1 % of GDP

and agriculture.                                                       (19.3 % in 1996)

9. Arrears/claims (owed by non-                          R 694,3 tr
    state sector).

10. Arrears/liabilities                                              R 432,3 tr

Trade finance first stage

1) Pre-export finance and limited amounts of import finance. 2) Short-term but favourable conditions vis-a-vis other traded securities. 3) Bank guarantees.              4) Standard documentation. 5)  Low corporate indebtedness

Trade finance second stage

1) Pre-export finance on a name lending basis. 2) Import finance available for larger amounts. 3) Export finance starts moving in. 4) Tenor increases and margins come under pressure from capital markets issues. 5) Documentation requirements increase as transactions become more complicated. 6) Corporates prepare for equity issues.

Trade finance bridging the gaps

1) Russian corporates ambitions are exceeding the current legal and administrative infrastructure. 2) Lack of transparency and information jeopardises potential for corporates to raise finance in the own name. 3) Many Republics and other administrative entities are now starting to play an important role in raising trade financing to support their own large projects. 4) Practical impossibility of having external escrow accounts and the strict requirement to repatriate at least 50 % of the value of the goods exported. 5) The Russian commercial banking system can be the key to intermediate many of the collateral and corporate security requirements. 6) Central Bank regulations must be more flexible. 7) Syndicated trade credits are becoming the norm to comply with the increasing nominal amount of the facilities and to overcome Central Bank restricitions. 8) Credit derivatives and default options find limited application in trade credits.

Do you know the words …

Поурочный сборник тестов

LESSONS 1–2

Write down the word containing sound [w]

1.   1) new      2) way       3) who           4) other

2.    1) write    2) whom  3) wealth       4) law

Write down the word containing sound [ð]

3.   1) bathe      2) often     3) after         4) wealthy

4.   1) theory    2) bath       3) these        4) three