Glossary

General Glossary

W

Wage settlement index 

The measurement of the direct result of agreements reached in the collective bargaining agreements in terms of base wage and salary (that is, excluding bonuses or income supplements) in the euro area. It refers to the average implicit variation of monthly wages and salaries.

Warrant 

A tradable security that entails the right to buy or sell an underlying asset at a fixed price.

Watermark 

A security feature used in most banknotes. It consists of variations in paper density and thickness which cause variations in its opacity. As a whole, these variations form an image, integrated in the paper, which is visible against the light. Due to its variations in thickness, a watermark also has palpable raised print.

Window thread 

See security thread.

Withdrawal of banknotes from circulation 

The process whereby unsuitable used banknotes are withdrawn from the notes and coins in circulation. National central banks are responsible for deciding when a banknote is not suitable for circulation. Unsuitable banknotes are rendered useless or destroyed by the national central banks.

Write-down 

A downward adjustment to the value of loans recorded in the balance sheets of MFIs when it is recognised that the loans have become partly unrecoverable.

Write-off 

The removal of the value of loans from the balance sheets of MFIs when the loans are considered to be totally unrecoverable.