Blocked Cash and Export credit agency: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Added acronym to link with ECA entry)
 
Line 1: Line 1:
''Cash management''.
(ECA).


Blocked cash is cash that is surplus to a business's requirements but unable to be used.
A government, or government backed, agency which exists to support the country’s exports by providing facilities such as guarantees and advice.




Blocked cash often arises when a group has an offshore subsidiary which has accumulated cash as profits (or through the sale of capital assets) but is not permitted to distribute the cash to its parent as a dividend, loan repayment, interest, or capital reduction.
== See also ==
 
* [[Export-Import Bank of the United States]]
Outside of regulatory disputes, cash becomes blocked because it is the host country's intention that surpluses be used for re-investment in the country. This is a trap which can be suffered in emerging markets where offshore investors had assumed that the domestic economy would develop to enable free movement of capital or to provide further investment opportunities to develop distributable profits.
* [[Export Credits Guarantee Department]]
 
 
==See also==
*[[Cash management]]
*[[Distributable reserves]]
*[[Dividend]]
 
[[Category:Business_skills]]
[[Category:Financial_management]]
[[Category:Planning_and_projects]]
[[Category:Technical_skills]]
[[Category:Corporate_financial_management]]
[[Category:Financial_risk_management]]
[[Category:Treasury_operations]]

Revision as of 17:13, 9 March 2015

(ECA).

A government, or government backed, agency which exists to support the country’s exports by providing facilities such as guarantees and advice.


See also