Glossary

General Glossary

L

Labour force 

The sum total of workers in employment and unemployed.

Labour productivity 

The output that can be produced with a given input of labour. Labour productivity can be measured in several ways, but it most commonly measured as GDP at constant prices divided by either total employment or total hours worked.

LASER 

"Initials which correspond to the words "Light Amplification by Stimulated Emission of Radiation." It was invented in 1960 and provides a source of very intense monochromatic light and parallel rays. Since 1960, various types of lasers have been developed. Lasers are applicable to a large number of technologies, some of which are applicable to banknote security."

Laser printer 

Electrophotographic (xerographic) printing machine that forms the image to be reproduced using a laser writing device.

Latent image 

A ghost or spectral image within the context of a security document. It is an optically variable and non-iridescent device based on the raised intaglio printing technique. The effect is only perceptible on observing the image from certain angles.

Layout 

Preparation of the original materials such as films, files, plates, etc. required to print a banknote.

Leasing  

Finance lease transaction by means of a contract whose objective is to loan an asset in exchange for a fee, including an option to buy in favour of the user at the end of the contract.

Legal convergence 

Compatibility of the legislations of Member States and of the statutes of their central banks with the provisions of the Treaty establishing the European Community on the European System of Central Banks (ESCB), the statutes of the ESCB and of the European Central Bank (ECB). The European Council must assess whether to admit these States to the third and final stage of European Monetary Union (EMU).

Legal interest rate 

In accordance with the Spanish Civil Code, this is the interest rate applied as compensation for damages and losses where debtors fall into arrears (are delayed in meeting their obligations) and no specific interest has been agreed. It is established in the General Budget Law, following the trends in the financial markets.

Legal tender  

The official tender of a state where it is the currency; that is, the citizens of that country are obliged to accept it as a means of payment of a debt.

Legitimate or authentic banknote 

A banknote that satisfies all the specified requirements. It is a means of payment, full legal tender, and represents the amount of money indicated on its face value.

Lender  

A natural or legal person who loans money for its return with interest.

Liability transaction  

Any transaction whereby credit institutions obtain their resources, for example, a margin deposit or current account of a customer. This denomination originates from the fact that the book entry is made under liabilities in the credit institution's balance sheet.

Light interference 

This is based on the wave nature of light: the light waves that are in phase mutually reinforce each other, the waves in contrast void each other. A well-known phenomenon that uses light interference is the effects of changing lights. The optically variable ink used in euro banknotes produces light interference.

Links between security settlement systems 

Procedures and mechanisms between two securities settlement systems for the cross-border transfer of securities through book entries.

Liquidity risk 

The risk that a counterparty will not settle a payment obligation in full when it becomes due. Liquidity risk does not imply that a counterparty or participant is insolvent, since it may be able to effect the required settlement at some unspecified time thereafter.

Lithography 

A process of printing from a flat surface, such as a metal plate or a flat stone (litos means stone in Greek), in which the parts of the image receive ink while the parts without an image repel the ink.

Loan 

Capital given to a person under the commitment to return it, together with the agreed interest. It is usually returned in regular repayments, comprising capital and interest.

Longer-term refinancing operation 

A regular open market operation executed by the Eurosystem in the form of a reverse transaction. These operations are carried out through monthly standard tenders and normally have a maturity of three months.

Luminescence 

The collective name for the emission of non-incandescent light (cold light). In practice, luminescence is the conversion of invisible radiation, such as ultraviolet, into visible light. Luminescent inks are frequently applied to documents as a security feature. Luminescent security features can't be imitated by normal reproduction techniques.