concessionality

Noun

concessionality (countable and uncountable, plural concessionalities)

1. The 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.
   • 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
   • 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
2. A 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