Concessional: meaning, definitions and examples
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concessional
[kənˈsɛʃənl ]
Definition
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.
Interesting Facts
Etymology
- Derived from the Latin word 'concessio', meaning 'a yielding', which shows the idea of giving something up.
- The term has been used in legal contexts since the 1930s, reflecting formal agreements.
- It emphasizes a mutual understanding where both parties make allowances for one another.
Economics
- Concessional loans are offered at below-market interest rates, intended to support development in poorer countries.
- This financial approach helps facilitate investments in infrastructure, education, and health.
- The use of concessional packages can stimulate economic growth by making projects more feasible.
International Relations
- Concessional agreements are often used in treaty negotiations, where countries might compromise on policy for mutual benefit.
- These negotiations can lead to peace treaties or trade agreements, showing flexibility from both sides.
- Examples include climate change agreements, where nations make concessions to better protect the planet.
Negotiation
- The concept of concession is crucial in conflict resolution, allowing parties to find common ground.
- Successful negotiators often plan their concessions strategically to encourage reciprocation.
- Analyses of negotiations show that well-timed concessions can lead to more favorable outcomes.
Psychology
- Studies suggest that people are more likely to agree in negotiations if they believe both sides are making concessions.
- The 'norm of reciprocity' indicates that when one party concedes, the other feels obliged to respond similarly.
- Understanding human behavior in concessions helps improve communication and relational dynamics.
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