In, for, under, to (2), into.

1.The National Bank of Ukraine transferred to the International Monetary Fund USD 359.2 million, ensuring the timely and full implementation of Ukraine's obligations specified …….. the loan agreement between the parties for this year, 2. Ukraine has to date signed seven loan deals with the Fund, and money owed to the IMF itself accounts for about two-thirds of the sum due ……repayment this year. 3. Delta executed a separate guarantee of the obligations .… the indenture. 4. The ability to request that a court force party to adhere …. the terms of a binding loan contract protects the borrower and the lender in the event that either does not adhere …. the terms of the original agreement. 5. What details do I give someone who wants to pay money …. my paypal account?

Exercise 9. Match the terms with their definitions.

1.	direсt debit	a.	a faсility, whеre the same amount of money is transferrеd from one aссount to another at regular intervals. For eхamplе, somebody might set up this facility to pay the rent autоmatiсally every month
2.	balance	b.	a faсility, where a varуing amount of moneу is transferred from one aссount to another at regular intervals. For eхample, somebody might set up this faсility to pay his telephone bill automatiсallу every month
3.	time deposit	c.	the difference between an amount due and an amount paid
4.	standing oгdeг	d.	an arbitrary prearranged sum that becomes payable if one party breaches a contract or undertaking. It is usually expressly stated in the contract
5.	penalty	e.	a draft or withdrawal of money in excess of the credit balance on a bank or building-society cheque account
6.	revolving line of credit	f.	an instant-access checking account used for everyday tгansaсtions suсh as paying bills, transferring money and drawing сheques
7.	closed end credit	g.	a bank account that cannot be withdrawn before a set date or for which notice of withdrawal is required
8.	overdraft	h.	an arrangement between a financial institution and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain
9.	current account /demand deposit (US)	j.	credit which is to be repaid in full (along with any interest and finance charges) by a specified future date
10.	letter of credit	k.	an agreement by a bank to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid
11.	line of credit	l.	a negotiable instrument drawn against deposited funds, to pay a specified amount of money to a specific person upon demand
12.	proxy	m.	a letter written by a bank authorizing another bank to pay someone a sum of money ( often used by importers and exporters)
13.	traveller's cheque	n.	the authority to represent someone else, esp. in voting
14.	check	o.	a cheque that you buy at a bank and take with you when you travel, for example so that you can exchange them for the currency of the country that you are in

Ехerсisе 10 .What kind o f bаnk aссount do you think eaсh of thesе peoplе might havе openеd?

1.A twelvе-year old child inherits l0,000£, whiсh he won’t bе ablе to touсh until hе’s 18.

2.An elderly woman keeps $200 in her handbag, for emeгgenсiеs. She is persuaded to pay it into a bank account for safety.

3.An 18 year-old begins to work аnd neеds аn ассounts so thаt his wages саn be pаid аt the end of the month.

4 A сouple with young children wins a large amount of money in the lottery.

5. A student nеeds a bank ассount for hег grаnt.

6. A tеenager wants to save some money to buy а motor-bike.

Еxеrсisе 11. What kind of сredit did еасh of thеse bank customers ask for?

1.Jenny is a student whosе inсomе only just meets her expenses.

In the winter months her heating and electricity bills are higher and without credit she wouldn’t always be able to pаy them.

2.Adam wants to buy а сar, but only has enough savings to buy an old one. He would rather makе usе of his bаnk’s сredit fасilities to buy а nеwеr model whiсh hopefully wouldn’t need repairing so often.

3. Mг. Priсe hаs to pаy thе rеnt for his аpаrtment on thе first dаy of every month. However he only receives his salary on the third day of the month. Without his bank’s credit facilities , he wouldn’t always be able to pay the rent.

4. You need a bank’s credit facility to cover start-up costs. You cannot be sure how much money you’ll need and when the necessity occurs.

Exercise 12. Match the method of payment with the definition.

1. Credit card

2. Debit card

3. Cheque

4. Traveller's cheque

a. A piece of paper which transfers money from your account to somebody else's account.

b. The money is deducted from your bank account almost immediately.

c. These can be exchanged for foreign currency, or in some cases used instead of cash.

d. You owe the card provider money. You can pay it back in one installment, or over a longer period if you wish.

Exercise 13. Check your knowledge of banking products and services. Answer these questions.

1. What functions does a modern bank perform?

2. What accounts are called deposits?

3. What categories of deposit accounts are there in the USA?

4. What are the key features of a transaction account? What is its major function?

5. What are the two types of transaction accounts? Characterize each of them.

6. What is the function of savings accounts?

7. How is the customer’s savings account usually debited in case he/she is a current account holder in the same bank?

8. What are the characteristics of a time deposit? Is it automatically renewable?

9. Do the holders of CDs pay any penalty if they withdraw their money before the maturity?

10. What are the two ways of borrowing?

11. What does an overdraft on current account mean?

12. What is a loan?

13. How can a loan be repaid?

14. What are the two categories of loans?

15. How are business loans classified?

16. How do short-term and long-term loans differ?

17. What is a line of credit? What differs a closed-end line of credit from an open-end line of credit?

18. What are the types of consumer loans? Characterize each of them.

19. What other recipients of loans are known to you?

20. What is check clearing?

21. What do electronic transactions allow for?

22. What do electronic banking services include?

23. What is a remote terminal? What types of the remote terminals are you familiar with? How much is it safe to use ATMs?

24. What is a POS? How is the transaction authorized?

25. What is a safe deposit box aimed at? How much are they secure?

26. How does the bank provide a cash management function?

27. What services do bank trust divisions provide?

28. How do the banks perform the function of trustees under indenture?

29. How do the banks contribute to the functioning of the commercial paper market?

30. What do the banks issue letters of credit for?

31. What other products and services do banks provide?

Exercise 14. Choose the correct alternative.

Open an account with Grimleys Bank, and start benefiting from our great rates/levels of interest and small / low charges. With over 3,000 branches/outlets, you'll never be far from us, and unlike many other high street/ own centre banks, we're open all day on Saturdays.

Grimleys customers can take money/make withdrawals from more than a million cash dispensers/money machines worldwide, and of course you'll receive a cheque book/book of cheques and a paying card/debit card within a few days of opening your account. Computer-users may be interested in our e-account – all the benefits of a regular Grimley's current/day-to-day account, with the added convenience of being able to view your lists/statements and make/do payments online.

Whether you're opening your first current account, switching/changing from another bank or simply want to take advantage of our range/variety of savings accounts, you'll be glad you chose Grimleys – the bank that always makes/puts the customer first.

Exercise 15. (A)Learn more about open-end and closed-end credit. Fill in the gaps with the vocabulary from the box.

open-ended credit line	imposed	borrowing limit
needs	home-equity line of credit	outstanding debts
asset	dispersed	available
credit score	options	bank account

When you apply for an _____________ with a banking institution, you typically have three ____________available: credit cards, equity lines and personal checking lines. Credit cards are one of the more common open-ended credit sources, but equity lines and personal checking lines of credit might offer more money depending on your __________. Equity lines are typically backed by an ____________owned by you, like a home or piece of property. Personal checking credit lines are open-ended lines offered by banks that use your ___________ as collateral. When you apply for a close-ended credit line, you apply for a loan. Loans are dispersed in full immediately, unlike open-ended credit lines.

Both open-ended and close-ended credit lines have borrowing limits ____________ by the bank for their protection and your own. The _______________ depends on your credit rating and if the credit line is secured or unsecured. For example, a _____________________is a secured credit line offered to you with your home as collateral. If your home is valuable, your credit line will be large; if your home is not valuable, your credit line will be smaller.

Open-ended and close-ended credit lines have different effects on your credit score. Open-ended credit lines, for example, increase the amount of ____________ credit to you, which increases your_____________. Close-ended credit lines are ____________ immediately, and are seen as _____________ by credit rating agencies, which might lower your credit score. Making payments on both types of credit, however, has the potential to increase your credit rating.

(B) Learn more about retirement plans provided by banks. Fill in the gaps with vocabulary from the box.

tolerance	tax expert	bonds
vary	subsidiary	weigh
earnings	tax-deferred	deposit accounts
contributions	establish	set limit

A popular retirement plan is an individual retirement account (IRA). Any individual with earned income can _____________an IRA and make _________________to it up to a______________. The ___________on the contributions are ____________or tax-free depending on the type of IRA (many different variations are available). The contributions may or may not be tax-deductible depending on the type of IRA.

Options for investing IRA funds_____________. Banks may offer both deposit account options and brokerage accounts (often by way of a brokerage that is a ________________or affiliate of the bank). With a brokerage account, the customer can invest in mutual funds, stocks, __________, and other uninsured investments. Customers make their choice based on their risk ____________(insured _____________versus uninsured alternative investments), amount being saved, and time horizon for retirement. Most customers need to ________many considerations when deciding on the type of IRA that is appropriate for them. Depending on their tax situation, they may need to consult a________.

Exercise 16. Listen to an interview with Joan Rosas, who talks about recent changes in international banking. Mark the following statements true or false.

1. Factors affecting international banking have been new technologies, globalization, regulatory frameworks and an increase in the use of more complex banking services.

2. Thanks to new regulations, the way banks and businesses can move money around the world has changed significantly.

3. Joan Rosas says that e-mails and electronic direct debit are examples of how technology has improved international business.

4. Cheque transaction is an example of how IT systems have improved international business transactions.

5. According to Joan Rosas, all companies now have direct access to capital markets.

6. Bond issues, mergers and acquisitions and corporate restructuring are all examples of fairly basic business services.

Exercise 17. Listen to the second part of the interview with Joan Rosas and complete these notes on future developments in international banking.

Banks and financial institutions

Large, __________ banks will remain, but we’ll see an increase in _____________banks. _______________ banks will continue to ______________ because they are business-oriented and tend to focus on__________________.

Products and services

We’ll see an increase in new products or services like _____________services, which consist of a package including ______________ accounts, _____________ renting, pension funds, _____________finance, all under one label.

New delivery channels

“Clicks and ___________” banking is where you combine both the ___________ network with ________________ banking. ______________ banking uses the Internet only.

WAP services use ______________ for all banking transactions. ____________ banking means you can bank from home using the ______________________.

Exercise 18. A. Discuss the following questions:

What does the term “microfinance” mean?

What does the abbreviation NGO stand for?

B. Match up the words and definitions:

Diversify Conventional Tool Scalable Portfolio

able to be scaled or climbed; based on or in accordance with what is generally done or believed; to vary in order to spread risk; something used in the performance of an operation; an instrument; a group of investments held by an investor, investment company, or financial institution.

C. Listen to an MBA student who is talking about microfinance. Answer these questions.

1. In microfinance, what replaces normal financial collateral?

2. What is the “risk-management tool” that the speaker mentions?

3. Why is lending money to poor people not necessarily as risky as it sounds?

4. Why are conventional banks now developing microcredit products?

5. In which three continents are there successful microfinance schemes?

6. What do you think of this kind of banking initiative? What other initiatives like this have you read about or heard of ?

Exercise 19. Role-play the following situation:

A major bank has been rescued by the government after losing billions of euros on speculative investments. But it has lost a lot of customers and now has a very bad reputation. One of the directors thinks that the way the bank can regain public trust and restore its reputation is to enter the microfinance market in developing countries. He/she calls a meeting to explain the idea to colleagues. Choose the role. Take part in the meeting to decide what to do.

Role card 1.

Director A.

You chair the meeting. Let Director B speak first and explain his/her ideas, and then ask for your colleagues’ opinions. Make sure that people remain polite and do not interrupt each other. At the end of the meeting you can try to formulate a specific proposal to present to the full board of directors, if you think there is any agreement among the people at this meeting.

Role card 2.

Director B

According to the World Bank, 2.8 billion people – almost 40 % of the world population – are affected by poverty and live on less than $2 a day. But 500 million of these people are economically active, trying to improve their income as “microentrepreneurs”. They need small loans as start-up capital, and other financial services, so that they can run small businesses.

Microcredits allow people to work more efficiently as vegetable growers, animal breeders, small shopkeepers, manufacturers, roadside cooks, street vendors, market traders, hairdressers, clothes makers, etc.

Statistics from Bangladesh for example, show that 97% of borrowers from microfinance institutions pay interest and repay their loans. The majority of borrowers are women, who have better repayment rates than men. Even if borrowers have no collateral, microcredit banks can grant group loans, or count on group pressure acting as a social control that encourages people to repay.

You think your bank should lend some money to microfinance institutions in Asia, Africa and Latin America, and publicize this fact: this would help restore the bank’s image.

You will speak before your colleagues C, D and E.

Role card 3.

Director C

You listen carefully to your colleague’s arguments, but you are totally opposed to getting involved in microfinance in poor countries. You have several arguments:

• Setting up partnerships with microfinance institutions in developing countries would involve a lot of work, and your staff all have plenty of other things to do.

• Your banks has no expertise in this kind of venture.

• Some of your depositors might not like their money being used in this new way.

• Even if you find reliable local partners, there are huge fixed costs involved in microfinancing. The lender has to assess potential borrowers’ security and repayment prospects, administer the loans, and find waysof collecting from borrowers who don’t repay, which all costs money. The expenditure involved in making a small loan (e.g. $ 1000) is the same as making a very large one (e.g. $1,000,000), so small loans need very high interest rates to cover their costs and make a profit.

Role card 4.

Director D

You are absolutely in favour of encouraging entrepreneurial activity, but you think that your bank should do this in its local market. There are lots of small medium-sized enterprises that need capital in your own country. Your bank has expertise in lending to this type of customer. Your depositors might prefer to know their money is being spent in this way. Your bank’s branches would probably get a better response from their local communities if they invested locally. You could have a special advertising campaign explaining your support for local businesses.

Role card 5.

Director E

You agree with your colleague director B that working with microfinance institutions in developing countries would be very good for the bank’s image. You also think it would be a very good thing to do even without considering the bank’s reputation. Microcredits encourage the entrepreneurial spirit and help reduce poverty in developing countries.

But you also see another opportunity. Instead of lending your current funds, you could launch a Microcredit Fund as an opportunity for socially motivated investors. They could invest money (starting at $1,000 or € 1,000) in a special fund. The money would then be administered by established microfinance institutions. Investors would receive a variable return, depending on how profitable the microfinance operations were. This would give you an attractive new investment product to offer your customers.

Exercise 20. Choose the best alternative.

1. Regular bank statements will be sent to you by post, listing recent __________.

a. payments b. events c. transactions

2. New current account customers can borrow up to £200 in the form of a low-interest __________.

a. overdraft b. overtake c. overspend

3. The current rate of interest for __________ overdrafts is 6.7% APR.

a. permitted b. allowed c. authorised

4. While your account is __________ credit, there are no charges.

a. under b. in c. with

5. If your account is overdrawn, charges may __________.

a. happen b. apply c. occur

6. When you acknowledge __________ of your new debit card…

a. receipt b. the receiving c. reception

7. …you will be sent a PIN (Personal _________ Number)

a. identifying b. identifier c. identification

8. You will need to _________ your PIN each time you use the card.

a. put in b. type c. enter

9. Two or more customers may apply for a __________.

a. two-person account b. joint account c. together account

10. Current account __________ may apply for a Grimley’s Credit Card.

a. holders b. owners c. users

11. Credit cards will be issued __________.

a. if you're rich enough b. if you have money c. subject to status

Exercise 21. Translate into English.

1.Кредитна лінія – форма кредитування, у якій в межах встановленого ліміту здійснюється видача і погашення кредиту декількома частинами (траншами), в найбільш зручному режимі для ведення бізнесу позичальника. У разі часткового або повного погашення кредиту, позичальник може повторно отримати кредит в межах встановленого ліміту і терміну дії кредитного договору. 2.Бажаєте поповнювати свій депозит, погашати кредит, платити за школу, комунальні або будь-які інші послуги не докладаючи до цього жодних зусиль? Відтепер Ви можете здійснювати платежі автоматично, за допомогою постійного доручення на автоматичне перерахування фіксованих сум коштів на вказані Вами рахунки фізичних або юридичних осіб. 3.Безстроковий депозит «Активні переваги» не вимагає попереднє повідомлення про зняття коштів, тобто дозволяє вільно знімати кошти та поповнювати рахунок. Проценти нараховуються щомісяця, а відсоткова ставка зростає пропорційно до збільшення суми вкладу. 4.Якщо ви тримаєте великі залишки готівки, Вам слід перевести їх на ощадний рахунок. 5.Умови строкового депозиту зазначено у договорі на відкриття рахунку. Власники таких рахунків можуть розраховувати на повернення вкладу та виплату відсотків лише після настання дати виплати, яка повідомляється заздалегідь. В іншому випадку стягується штраф за дострокове зняття коштів. Деякі запропоновані рахунки передбачають автоматичну пролонгацію. 6.Підприємства можуть одержувати кредити з відсотковою ставкою: • плаваючою та фіксованою. Позики з фіксованою відсотковою ставкою підприємствам надаються переважно за умов стабільної економіки. Іноді такі позики підприємство може отримати й за умов інфляції, але тільки на дуже короткий термін. 7.При відкритті відновлювальної (револьверної) кредитної лінії ліміт кредитування визначається у вигляді ліміту заборгованості з позики. Це дає змогу підприємству-позичальнику отримати позику в межах встановленого ліміту, погасити всю її суму (або частину суми) й автоматично отримати повторно кредит у межах терміну дії кредитної лінії. Відновлювальна кредитна лінія є більш гнучкою формою креди­тування і нерідко надається без спеціального забезпечення. 8.Овердрафт – це короткостроковий кредит наданий власнику поточного рахунку, який дозволяє у межах встановленого ліміту перевищувати залишок рахунку. Погашення овердрафту здійснюється автоматично за рахунок щоденних надходжень.У разі погашення овердрафту в день, коли виникла заборгованість, відсотки за користування кредитними коштами не сплачуються взагалі. Овердрафт підлягає погашенню на вимогу. Існує можливість оформлення овердрафту без застави.

Exercise 22. Translate the following business letters into English.

Letter 1

АКБ “Простобанк”

Московський проспект, 37

Київ, Україна

13 лютого 2012 року

Шановні панове,

Наша компанія “Секьюритисервис” хотіла б відкрити у вашому банку поточний та депозитний рахунки в національній валюті України та в доларах США.

Додаємо зразки підписів партнерів-співвласників, кожен з яких має право підписувати документи від імені компанії.

Просимо Вас повідомити нам Вашу поточну ставку по депозитах, та яку мінімальну суму необхідно тримати на рахунку, щоб уникнути оплати банківських послуг.

Щиро Ваш,

Дж. Сміт,

Генеральний директор

Letter 2

АБ “Натвест”

Вул. Даунінг, 45

Лондон, Великобританія

20 березня 2013 року

Шановні панове,

Звертаємось до вас з проханням надати нам кредит у сумі 30 000 фунтів стерлінгів на період з 1 травня по 1 листопада 2013 року.

Як вам відомо, наша компанія в першому півріччі 2013 року змушена буде нести витрати пов’язані з розширенням бізнесу , що принесе дохід не раніше кінця липня поточного року. В якості застави можемо запропонувати банку акції на суму 20 000 фунтів стерлінгів та земельну ділянку балансовою вартістю 10 000 фунтів стерлінгів.

Щиро Ваш,

Д.Кривонос,

Генеральний директор

Letter 3

АТ “БУДсвіт”

Вул. Чорновола, 157

Київ, Україна

4 лютого 2013 року

Шановні панове,

Ми уважно розглянули ваше прохання про надання кредиту.

Повідомляємо вам про нашу згоду надати вам кредит в розмірі 40 000 доларів США на строк до 5 років, ставка – 17% річних з щоквартальними виплатами. Якщо вас влаштовують наші умови, ми будемо раді стати вашими довгостроковими партерами.

Користуючись нагодою повідомляємо вам, що наш банк збільшує діапазон послуг, що надаються клієнтам. Перелік послуг додається.

Якщо вас влаштовують наші умови , запрошуємо вас відвідати наш банк для особистого обговорення перспектив спільної праці.

Щиро Ваш,

М. Петерсон

Начальник департаменту кредитування