1993 SNA Update Information - AEG recommendations for issue:
Activation of guarantees (contingent assets) and constructive obligations |
| Issue description | | Issue description in [English] | [French] | [Russian] | [Spanish] | | Loan guarantees have a significant impact on economic behavior, especially when issued by
government. The 1993 SNA treats guarantees as contingent liabilities and thus has no record of
the existence of the guarantee until it is activated. Further, the treatment of flows arising at the
activation is not explicit. Should obligations arising from guarantees be recognized when
guarantees are granted, particularly regarding those guarantees for which it is possible to make
reasonable estimates of expected future claims? |
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| AEG recommendations | | Number of AEG recommendations for selected issue: | 2 | | Corresponding meeting | Date posted | Recommendation |  | | Jan-Feb 2006 | 4/7/2006 |  m4guarantees; | | July 2005 | 9/12/2005 | A clear majority of the AEG was in favour of accepting all the recommendations in principle. However, a number of details need to be clarified (e.g. a payment appears to be treated as a capital transfer in one part of the paper and as a current transfer in another, and the exact nature of the parallel with insurance).
The AEG agreed that a revised version of the paper combining the granting and activation of guarantees should be prepared for e-discussion. |
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