Rentier state and Single legal account pooling: Difference between pages

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Rentier state is a term coined by Hossein Mahdavy in 1970. This theory defines rentier states as those countries that receive on a regular basis substantial proportions of their total national revenue from the rental of indigenous resources to external clients.  
A cash management technique based around a single legal master account structure in the name of the parent or group financing company where the other participant accounts act as memo accounts of that legal account.


An example of this type of rental is the payment for passage of ships through the Suez Canal.   
This cash management technique is widely used in Northern Europe (Nordic and Baltic countries).   


The term 'rentier state' can also be applied more broadly to states which receive income from dealing in valuable natural resources such as oil, or financial instruments such as reserve currency or strategic resources such as military bases.
Also known as Balance netting.




The more general term 'rentier' originally referred to an individual living on income from property or from other investments.
== See also ==
 
* [[Cash management]]
 
* [[CertICM]]
 
* [[Pooling]]
==See also==
* [[Legal implications of cash pooling structures]]
*[[World Bank]]
 
[[Category:Corporate_financial_management]]

Revision as of 11:11, 1 December 2014

A cash management technique based around a single legal master account structure in the name of the parent or group financing company where the other participant accounts act as memo accounts of that legal account.

This cash management technique is widely used in Northern Europe (Nordic and Baltic countries).

Also known as Balance netting.


See also

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