1. Read and learn the following words and word combinations. Translate the examples:

agreement n – 1) домовленість; 2) угода; payments agreement – платіжна угода; to conclude an agreement – укласти угоду; to sign an agreement – підписати угоду

e.g. Payments agreements usually supplement trade agreements.

settle v – 1) вирішувати; 2) домовлятися, погоджуватись; 3) розраховува­тись, платити; 4) владнати, урегулювати

settlement n – врегулювання

obligation n – 1) обов’язок; 2) зобов’язання, борг; 3) боргове зо­бов’язання

e.g. Payments agreements settle the mutual obligations of the parties.

clearing n – 1) кліринг, безготівкові розрахунки; 2) розрахунки по біржовим угодам; clearing agreement – клірингова угода; clearing account – кліринговий рахунок, розрахунковий рахунок (по клірингу); clearing bank – кліринговий банк (bank of issue – банк-емітент); clearing rate of exchange – розрахунковий курс обміну валют

e.g. Clearing agreement is the most usual type of payments agreement.

in advance – заздалегідь

e.g. The official exchange rate is usually fixed in advance.

validity n – законність, юридична сила, дієвість; validity of an agreement – строк дії угоди

valid adj– законний; той, що має юридичну силу

e.g. Clearing rate of exchange remains unchanged during the entire period of the validity of the payments agreement.

expire v – завершуватись, закінчуватись, витікати (про строк, час);

expiry n – завершення, витікання (строку); expiry date – кінцева дата

expiration n – завершення, витікання; expiration of the validity – закінчення строку дії

balance – 1) баланс, сальдо, залишок; 2) рівновага; to state a balance – підводити баланс; to settle a balance – оплачувати залишок по рахунку

e.g. The balance of this account must be stated and settled.

debt n – борг

debtor n – боржник

e.g. The debtor country agreed to settle the balance in gold.

delivery n– постачання

deliver v – постачати (товари), поставляти (товари)

e.g. All goods were delivered in time.

II. Read and translate the text:

Payments Agreements

Payments agreements are concluded between two or more countries (bilateral and multilateral payments agreements) to settle their mutual obligations arising from the exchange of goods, from services mutually rendered and from financial payments, such as wages, salaries, fees, royalties, copyright fees, etc. Payments agreements usually supplement trade agreements.

The most usual type of payments agreements is the clearing-agreement. A clearing-agreement usually contains the following items: the clearing rate of exchange, clearing-accounts, the settlement of the balance on the clearing-account, and some other clauses.

The clearing rate of exchange is the rate which is applied for the conversion of the currency of one country into the currency of the other country. The official rate is usually fixed in advance and remains unchanged during the entire period of the validity of the payments agreement.

All payments between importers of one country and exporters of the other country are settled on the clearing accounts that are opened with the so-called clearing banks (usually banks of issue) in the countries concerned.

When the validity of the payments agreement has expired, the balance on the clearing accounts is stated and the debtor country settles it in one of the following ways: (a) it transfers the balance to the clearing account of a new payments agreement, if such has been concluded: (b) it undertakes to settle the balance by deliveries of goods within a given time after the expiration of the validity of the payments agreement; (e) it agrees to settle the balance in free foreign exchange; (d) it agrees to settle it in gold.

III. Answer the following questions:

1. With what aim are payments agreements concluded?

2. How do we call payments agreements concluded between two or more parties?

3. What do payments agreements supplement?

4. What are the items of a clearing agreement?

5. How is the official clearing rate of exchange fixed?

6. How long does the official clearing rate of exchange remain unchanged?

7. Where are the clearing accounts opened and with what purpose?

8. What are the possible ways to settle the balance on the clearing account?

IV. Give Ukrainian equivalents of the following:

mutual obligations; obligations arising from the exchange of goods; copyright fees; some other clauses (of the agreement); in advance; the entire period; bank of issue; the countries concerned; the validity of the agreement has expired; within a given time; the debtor country.

V. Give English equivalents of the following:

двосторонні та багатосторонні платіжні угоди; взаємно надані послуги; доповнювати; врегулювання балансу; курс обміну залишається незмінним; строк дії угоди; відкрити рахунок в банку; взяти на себе зобов’язання; розраховуватись вільноконвертованою валютою/золотом

VI. Match the definition on the right with the word on the left. Translate and learn the definitions:

agreement	office at which banks exchange cheques, etc. and settle accounts;
to balance	end termination especially of a contract or agreement;
clearing bank	arrangement or understanding (spoken or written) made by two or more persons, governments, etc.
expiry	compare debits and credits and record the sum needed to make them equal

VII. Fill in the gaps with the words from the list below:

balance; clearing account; debt; validity; to settle; obligations

1. At yesterday’s meeting they settled all their mutual ….

2. What way did you choose … the balance?

3. We have already opened a … with this bank.

4. They undertook to pay the … within a month.

5. The … of this agreement has already expired, so we have to state ….

VIII. Learn the following expressions. Make up 5 sentences with any of them:

agreement	to arrive at an ~, to come to an ~, to reach an ~, to achieve an ~	досягти угоди, домовитись
	to conclude an ~; to make an ~; to enter into an ~; to sign an ~ -on	укладати угоду (по, щодо)
	to keep an ~; to observe an ~	виконувати угоду
	to infringe an ~; to violate an ~; to break an ~	порушувати угоду
	to dissolve an ~; to terminate an ~; to revoke an ~; to cancel an ~	анулювати угоду, розірвати угоду

IX. Match the synonyms. Use any 5 in the sentences of your own:

to render	beforehand
to settle	to arrange
expiry date	to pass on
to transfer	to provide
to conclude	deadline
in advance	duty
obligation	securities
royalties	to fix

X. Match the words with opposite meaning. Use any 5 in the sentences of your own:

agreement	afterwards
creditor	individual
in advance	beginning
mutual	dispute
expiry	debtor

XI. Translate into English:

1. Після багатьох суперечок сторони досягли взаємної угоди щодо по­ставки товарів.

2. Коли закінчується строк дії угоди?

3. Якщо ви порушуватимете угоду, ми її розірвемо.

4. Коли книгу перекладуть автору буде сплачений авторський гонорар.

5. Залишок по рахунку буде сплачений поставкою товарів в наступ­ному місяці.

6. Сторони домовилися не змінювати обмінний курс до кінця дії платі­жної угоди.

12. Topics for discussion:

1. Speak about payments agreements and their essence.

2. Speak about the clauses of clearing agreements.

3. Clearing account and the ways to settle it.

12. Skills practice:

Nouns of movements can be classified with an adjective or adverb to describe a change more precisely. Complete the table:

	ADJECTIVE	ADVERB
a small change	slight	slightly
a regular movement	gradual, steady
considerable, striking or unexpected change	sharp, dramatic, sudden

Assignment 1. Label the graph using these descriptions: 1) a dramatic increase; 2) a steady rise; 3) a peak; 4) a trough; 5) a sharp drop; 6) a slight decline.

SALES (1000 units)

Assignments 2. Describe the graph, using the model.

There was a steady rise in sales in January, February and the first half of March, then they fell to 1,000 units in mid April.

Unit Six

The Contract of sale