| RATE FIXING |
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| A procedure used for loans and other debt instruments whereby the applicable rate of interest is determined from time to time, usually by the Agent bank. |
| RECOURSE / LIMITED RECOURSE |
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| Where an exporter or project sponsor provides whole or partial guarantees of future payment. |
| RED CLAUSE LETTER OF CREDIT |
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| A mechanism by which funds may be advanced to an exporter under a Letter of Credit in advance of goods being shipped. |
| REDUCING BALANCE GUARANTEE |
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| A guarantee for a loan that reduces as the loan is repaid. |
| REIMBURSEMENT |
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| Used in the context of Letters of Credit whereby a bank which has made a payment on behalf of another bank is entitled to reclaim the funds from a designated account of the instructing bank. |
| REPO |
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| Jargon for "repurchase agreement" whereby one party agrees to sell securities to another and to repurchase them on or by a defined date in the future. |
| RETENTION |
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| A financial clause attaching to payments made to a contractor in respect of large project or construction operation according to which a proportion of the funds are withheld until the project is completed or commissioned or testing has taken place. |
| REVENUE-DRIVEN |
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| A financing structure which is developed based upon the cash flows of the project being financed. |
| REVOLVING LETTER OF CREDIT |
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| A Letter of Credit which provides for automatic reinstatement of funds available for drawing once a drawing has been made from it. |
| ROHIRST FORFAIT MANAGEMENT SYSTEM |
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| Commonly referred to as "Rohirst", this is the principal software application used in the forfaiting market to calculate discounts and store data on trades and portfolios. |
| ROLLOVER |
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| The extension of a loan for a further period of time, beyond that originally envisaged. A renewal of a loan for a further period within the terms originally agreed. |
| ROMALPA CLAUSE |
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| A form of reservation of title where a supplier seeks to retain title to goods he has supplied to his buyer. Romalpa clauses apply to situations where the supplier fears that if he supplies goods and the buyer becomes insolvent without having paid for them, he will be left as an unsecured creditor. |
| RTGS |
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| Real Time Gross Settlement System for transferring money. |
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