concessionality

plural concessionalities

1. countableuncountableThe degree by which a loan or trade reduces the lender's or one trading partner's returns in comparison with what they would get at full market rates.

   The concessionality of tied aid credits is typically underwritten by development assistance (aid) agency budgets rather than export credit agency budgets.

   2004, William Arthur Delphos, Inside the World's Export Credit Agencies, →ISBN, page xxvi

   1 more example

   To further discourage the use of associated financing and tied aid as a low-cost device for trade promotion, the new Guiding Principles raise the minimum level of concessionality which each transaction must attain.

   1987, Organisation for Economic Co-operation and Development. Development Assistance Committee, Development Co-operation

2. countableuncountableA mechanism by which a loan or trade agreement results in the lender or one party receiving less than full market value.

   These are what we might call the "light grey" food aid of subsidised exports, export credits and other forms of concessionalities, which apply to a very high proportion of total food exports by food aid donors.

   1998, John Toye, Helen O'Neill, A World without Famine?, →ISBN, page 320