Concessional: meaning, definitions and examples
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concessional
[ kənˈsɛʃənl ]
financial terms
Concessional refers to loans or financial assistance that are provided on more favorable terms than the market conditions. These terms often include lower interest rates, extended repayment periods, or grace periods during which no payments are required. Such arrangements are typically offered to entities like developing countries, aimed at supporting their economic growth. The concept also extends to various types of incentives that lower the cost of financing. These conditions are crucial for encouraging investment in sectors that may otherwise struggle to attract funding.
Synonyms
benevolent, favorable, preferential, subsidized
Examples of usage
- The bank offered concessional loans to small businesses.
- Concessional financing can significantly reduce the debt burden.
- Non-profit organizations often receive concessional support from the government.
Translations
Translations of the word "concessional" in other languages:
🇵🇹 concessional
🇮🇳 छूट देने वाला
🇩🇪 vergünstigt
🇮🇩 konsesional
🇺🇦 пільговий
🇵🇱 preferencyjny
🇯🇵 譲歩的な
🇫🇷 concessionnel
🇪🇸 concesional
🇹🇷 indirimli
🇰🇷 양보적인
🇸🇦 تخفيضات
🇨🇿 koncesní
🇸🇰 koncesionálny
🇨🇳 优惠的
🇸🇮 koncesijski
🇮🇸 afsláttur
🇰🇿 жеңілдік
🇬🇪 კონსესიური
🇦🇿 müqaviləvi
🇲🇽 concesional
Etymology
The term 'concessional' comes from the noun 'concession', which traces its origins to the Latin word 'concessio', meaning 'a yielding, a granting'. Its roots can be broken down into 'con-', meaning 'together' or 'with', and 'cedere', meaning 'to go' or 'to yield'. The use of the term has evolved over time, particularly in the context of finance and economic development. It became prominent in the late 20th century when international organizations, such as the World Bank, began to formalize concessional lending as a means to support poorer nations. This financial strategy aims to make funding more accessible and attractive, thereby stimulating growth in areas that are crucial for social and economic improvement.