could you please tell me what an "offset credit" is in the following sentence:
Offset Credit Program: Supplier agrees that XXX will reserve the option to use all or any part of the value of its purchase order(s) and this agreement(s) with the SUPPLIER for offset/countertrade purposes, including, but not limited to: (1) fulfilling YYY’s offset or industrial benefit obligations, (2) transferring offset credits granted as result of such purchase order(s) and this Agreement to third parties, and (3) retaining credits granted for use in satisfying future offset obligations.
Thank you very much.
The idea of offset credit presumably has something to do with this sort of deal: http://www.if.com/mortgage/offset.aspx
I'm not sure of the details, but the basis of an offset mortgage is that anything your savings earn is automatically (and immediately) credited to your mortgage account - so you pay less interest on your debt. (You also receive less interest on your savings, but the financiers don't always point that out ).