Тема: Кредиты

Кредит и кредитный риск.

Study the words and the word-combinations.

crediting — кредитование;

securities — ценные бумаги;

shares — акции;

bonds — облигации;

in return — взамен;

given — предоставленный;

indication — знак;

extend — предоставлять;

finance — финансировать;

expenditures — расходы;

judge — оценить;

capacity — способность;

collateral — залог;

abuse — злоупотреблениe;

imply — подразумевать;

discharge of debt — погашение долга;

credit risk — кредитный риск;

interview — деловое свидание;

credit scoring system — система оценки потенциальных заемщиков;

clerical — канцелярский;

marital status — брачный статус;

refer — направлять;

credit rating — рейтинг общей кредитоспособности заемщика;

judgement — мнение;

entity — юридическое лицо.

I. Scan through the text and answer the questions that follow.

Credit and crediting

Credit – transactions between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower). [Creditor is someone who money is owed to. Debtor is someone who owes money.] Credit given is an indication of trust in that person to pay for the goods given or money lent. Credit transactions normally include the payment of interest to the lender. Credit may be extended by public or private institutions to finance business activities, agricultural operations, consumer expenditures, or government projects. Most modern credit is extended through specialized financial institutions, of which commercial banks are the oldest and most important. The lender must judge each loan he makes on the basis of the character of the borrower (his intention to repay), his capacity to repay (based on his potential for earning income), and his collateral (property or other goods that you promise to give someone if you cannot pay back the money they lent you). [Loan is an amount of money that you borrow from a bank.] Customers and lenders may publicly regulate the terms of credit transactions to prevent abuses.

1) What is meant by the term “credit”? 2) What does credit normally include? 3) What institutions may extend credit? 4) What may credit finance? 5) How is most modern credit extended? 6) How must the lender judge each loan? 7) What does the character of the borrower imply? 8) What is the debtor’s capacity to repay based upon? 9) What does the debtor’s collateral imply? 10) What may be publicly regulated? 11) Why may the terms of credit transactions be publicly regulated?

II. Agree or disagree with the following statements.

1) Credit is an arrangement with a shop, bank etc that makes it possible for you to buy something and pay for it later. 2) The lender supplies shares in return for a future payment by the borrower. 3) Credit doesn’t include the payment of interest to the lender. 4) Credit may sponsor consumer expenditures. 5) The lender must appreciate each loan. 6) The lender must estimate the character of the borrower. 7) The lender may not judge the borrower’s intention to repay. 8) The borrower must judge the lender’s capacity to repay. 9) The borrower’s capacity to repay is based on his potential for making money. 10) The lender must judge the borrower’s pledge. 11) The terms of credit can’t prevent abuses by customers and lenders. 12) Customers and lenders may secretly correct the terms of credit transactions to prevent abuses.

III. Translate the following words, phrases and statements from Russian into English.

Кредитование; акции; взамен; обещать; обещанный; долг; дебитор; облигации; занимать; знак; доверие; сделка; проценты; предоставлять; финансировать; потребитель; расходы; оценить; ссуда; способность; заработать; доход; залог; условия соглашения; публично; предотвратить; заказчик; подразумевать; кредитор; давать взаймы; ссудодатель; поставлять; ценные бумаги; предоставленный; злоупотребления; участвующее лицо.

Кредит – это ссуда в денежной или товарной форме на условиях возвратности. Кредитор – это один из участников кредитных отношений, выступающий как субъект, предоставляющий ссуду. Кредитором может быть государство, банк, предприятие или организация. Дебитор – это должник, юридическое или физическое лицо, имеющее денежную задолженность предприятию, организации, учреждению. Должник – это сторона в обязательстве, от которой другая сторона-кредитор вправе требовать передачи имущества, выполнения работы или уплаты денег в счёт погашения долга.

IV. Complete the following statements.

Credit means … 2) Credit given is … 3) Credit transactions include … 4) Credit may be … 5) Credit finance … 6) Most modern credit is extended … 7) The lender must judge … 8) Customers may regulate …

V. Scan through the text and answer the questions that follow.