Glossary

  1. A
  2. B
  3. C
  4. D
  5. E
  6. F
  7. G
  8. H
  9. I
  10. J
  11. K
  12. L
  13. M
  14. N
  15. O
  16. P
  17. Q
  18. R
  19. S
  20. T
  21. U
  22. V
  23. W
  24. X
  25. Y
  26. Z

G

GDP (GROSS DOMESTIC PRODUCT)

The GDP is a measure of the value of final goods and services produced in a geographical area (e.g. a country) over a period of time (usually one quarter or one year). The GDP can be calculated at market prices or constant prices, that is, net of changes in the prices of the goods and services produced (inflation or deflation).The GDP is a measure of the size of an economy. Hence, tracked over multiple years, the GDP can show whether an economy is growing or shrinking. The GDP per capita, obtained dividing the total GDP by the population, shows how much economic activity is contributed by each individual citizen on average. It is a measure for gauging the prosperity of a country.

GOVERNMENT SECURITIES

Government securities are bonds issued by governments to finance their own institutional activities. They are also called 'sovereign bonds'. In Italy they are issued by the Ministry of Economy and Finance, through the Treasury. They represent a loan to the State by those who subscribe them. Government securities can be bought either at auction, i.e. at the time of issue (on the primary market), or on the secondary market, where they are traded daily. In both cases, it is necessary to turn to your own bank or to an authorized financial intermediary.

GREEN BOND PRINCIPLES - INTERNATIONAL CAPITAL MARKET ASSOCIATION (ICMA)

The International Capital Market Association (ICMA) Principles currently set the standard for green bond issuance. The norms provide that issuers (should) i) disclose in a clear way to what projects the funds are devoted; ii) state the projects' environmental benefits and the criteria for classifying projects as green; iii) manage funds allocated to green projects separately from others; and iv) keep and make available up-to-date information on how the funds are used. Furthermore, the ICMA recommends that issuers provide specific information on each green bond's compliance with the guidelines; external auditors must be appointed to certify compliance at issuance, as well as to verify that the funds are actually used for their original purposes over the project's lifespan.

GREEN BONDS - THE CLIMATE BONDS INITIATIVE STANDARD

The Climate Bonds Initiative Standard integrates the ICMA principles with more in-depth guidance on the use of funds and on the opportunities for certification. The CBI standards were developed chiefly for those investments that contribute to the transition towards a low-carbon and climate change-resilient economy.

GREENWASHING

A communication or market strategy whereby companies, institutions or organizations falsely claim that their operations or products are environmentally friendly. Businesses use greenwashing to deceitfully try to increase their sales by taking advantage of consumers' growing concerns about environmental sustainability.

GUARANTEE

A guarantee is designed to protect the lender if the customer cannot repay the loan. Guarantees are divided into real and personal ones. Real guarantees - pledges and liens - are rights on things. A pledge is for moveable property, such as jewellery, while a lien is for real estate, such as houses, or registered moveable property, such as boats and cars. If the customer cannot repay the loan, the lender can reclaim the amount by selling what was put up as collateral. A personal guarantee is linked to the assets of the subject that provides it. The most common form is a surety.

GUARANTEE COMMITMENTS

An intermediary's commitment to guarantee the fulfilment of a client's obligation. Guarantee commitments can guarantee both commercial transactions (such as a surety by a bank for a firm participating in a public procurement procedure) and financial transactions (such as a surety that guarantees the repayment of a loan granted by another intermediary).