| 9/15/2006 | United Kingdom | Treatment of index-linked debt instruments:
We consider the dual treatments for instruments indexed to broadly based and narrowly based underlyings to be unsatisfactory and would favour a single treatment using the method proposed for use where the index series is potentially volatile. Specifically, given the constraint that interest recognition is to be based on the so called "debtor approach", we consider that interest should be based on the expected yield at the time of issue. |
| 9/15/2006 | United Kingdom | Debt indexed to a foreign currency:
We agree with all the recommendations made by the AEG.
|
| 9/15/2006 | Latvia | After deep discussions and expert consultations we basically support the
1993 SNA Update Issues. |
| 7/31/2006 | Israel | Index-linked debt instruments:
The method proposed for index linked debt instruments ensures that the treatment of such instruments is similar to the treatment of un-linked instruments, assuming that the nominal interest on such instruments is set to compensate for capital losses due to inflation.
However, index linked instruments exist in economies with significant inflation, and in such economies, in our opinion the recommendations for treatment of interest under inflation (in chapter 19 in the current SNA) should be used. If expected values are used, only the linkage of interest should be included in interest payments, and not the expected values of linkage to the principal.
Paragraph 19.82 in the current SNA includes the following sentence:
“The element of compensation for inflation should not be considered as a return to capital by the lender and a current cost by the borrower. The System treats these components of explicit or implicit indexation as interest received and paid in the current accounts, and this treatment does not create great difficulties when inflation is low. However, the measurement of these components is essential when inflation is high if one wants to interpret correctly figures such as government disposable income or saving (or government deficit) and the corresponding figures for creditor sectors, etc.”
In our view the SNA should first of all give the conceptually right solution, and then recommend inferior solutions that are implemented due to practical considerations, such as including the compensation for capital losses in the interest flows under low inflation. We also think that countries that are able to implement a conceptually right solution should explicitly be encouraged to do so. |
| 7/31/2006 | Israel | Debt instruments linked to foreign currency:
We disagree with treating debt instruments linked to foreign currency differently from debt instruments linked to other indices. The linkage to foreign currency is similar to any other linkage to a price. In economies with inflation there often is a choice between linkage to a general index or to for example the Euro or US$, and the various possibilities are seen as similar to the borrowers or lenders. Changing the treatment of debt instruments linked to foreign currency will seem an inconsistent registration of similar transactions.
We also think that there are important differences between debt denominated in foreign currency and debt linked to foreign currency (the amount of debt denominated in foreign currency for example seems important for policy on foreign currency reserves), so that they should not be put together in one category. The best solution would perhaps be to show debt instruments linked to foreign currencies as a separate category from both index linked debt instruments and from debt denominated in foreign currency. |
| 2/23/2006 | South African Reserve Bank | Interest on index-linked debt instruments:
We generally support the recommendations of the AEG. |
| 2/23/2006 | South African Reserve Bank | Debt instruments linked to a foreign currency:
We generally support the recommendations of the AEG. |
| 1/27/2006 | Central Bank of El Salvador | Debt instruments linked to a foreign currency:
de acuerdo con la decisión adoptada por el AEG, en cuanto a que debería tratarse como que si estuvieran denominados en la moneda extranjera a la cual están indexados. |
| 1/17/2006 | Central Bank of Chile | Interest on index-linked debt instruments:
En Chile la mayor parte de los instrumentos de deuda son indexados (reajustables) o tiene algún factor de reajustabilidad asociado, el tratamiento de los reajustes consiste en considerarlos como reconciliación precio, acogiendo las recomendaciones del SCN 93 Capitulo XIX Anexo B, en que diferencia el interés nominal del interés básico según los efectos de la inflación en el principal, recomendando dejar entre las reconciliaciones la diferencia entre ambos intereses.
Dado que en Chile la indexación está incorporada explícitamente en los contratos y en los estados financieros de las instituciones financieras constituye una partida importante, no se presentan mayores dificultades en la aplicación de la recomendación del SCN 93 mencionada. |
| 12/22/2005 | Serbia and Montenegro | Interest on index-linked debt instruments:
We agree with the suggested changes. |
| 12/22/2005 | Serbia and Montenegro | Debt instruments linked to a foreign currency:
We agree with the suggested changes. |
| 12/14/2005 | France | Interest on index-linked debt instruments:
L'INSEE soutient ces recommandations (en particulier le traitement dual, suivant que l'index sur lequel est émis la dette est volatif ou non). |
| 12/14/2005 | France | Debt instruments linked to a foreign currency:
L'INSEE soutient ces recommandations (en particulier le traitement dual, suivant que l'index sur lequel est émis la dette est volatif ou non). |
| 12/13/2005 | Canada | Interest on index-link debt instruments:
Canada agrees with BOPCOM that the status quo should be preserved since the debtor approach has been maintained as a valuation principle. |
| 12/13/2005 | Canada | Debt instrument linked to foreign currency:
Canada agrees with the recommendation to classify debt instruments indexed to a foreign currency as denominated in a foreign currency and to keep settlement currency separate from the currency of account. |
| 12/12/2005 | Bank of Korea | Interest on index-linked debt instrument:
We agree with the recommendation of AEG. We think that alternative 1 and alternative 2 can be chosen as the measurement of interest on index-linked debt instrument according to circumstances. |
| 12/12/2005 | Bank of Korea | Debt instrument indexed to a foreign currency:
We agree with the recommendation of AEG. We think that debt instruments with both principal and coupons indexed to a foreign currency should be classified and treated as being denominated in that of foreign currency. The currency of account and currency of settlement should be clearly distinguished in the new manual. |
| 12/9/2005 | Russia | Interest onindex-linked debt instruments:
Rosstat largely supports the recommendations on the updating 1993 SNA, made at the July 2005 meeting of the Advisory Expert Group on National Accounts.
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| 12/9/2005 | Russia | Debt instruments linked to a foreign currency:
Rosstat largely supports the recommendations on the updating 1993 SNA, made at the July 2005 meeting of the Advisory Expert Group on National Accounts.
|
| 12/6/2005 | Central Bank of Norway | Debt instrument linked to a foreign currency:
The Central Bank of Norway agrees with the AEG recommendations. Disregarding the linkage to a foreign currency would distort the data for both foreign exchange exposure and revaluation. |
| 12/6/2005 | Central Bank of Norway | Interest on indexed-linked debt instruments:
We suggest that the present 1993 SNA treatment should be kept even if it may result in negative values of interest in some cases. This is the most practical alternative and we cannot see that the other alternatives are satisfactory. The “1993 SNA with revisions” alternatives both involve large amounts of backward revision work. “The modified debtor approach” alternative requires well established markets with detailed term structure for the variable underlying the index in order to observe the expectations. This may be easier to obtain for financial instruments, but difficult for commodities. |
| 12/5/2005 | Denmark | Interest on index-linked debt instruments
Agreement
Practically recommendations on how to calculate expected redemption values should be provided – what reference rate should be used. |
| 12/2/2005 | Netherlands | Interest onindex-linked debt instruments:
We generally support the recommendations of the AEG. |
| 12/2/2005 | Netherlands | Debt instruments linked to a foreign currency:
We generally support the recommendations of the AEG.
|
| 12/2/2005 | Australia | Interest on index-linked debt instruments:
Australia believes that this issue is proving intractable as it is not possible to deal with such complex cases using the debtor approach to interest accrual. That said, given the decision to adopt a debtor approach we agree with the decision of the AEG, recognising that the adoption of (c) in certain circumstances represents a change to the SNA |
| 12/2/2005 | Australia | Debt instruments linked to a foreign currency:
Australia agrees with the AEG recommendations.
However, the purpose of distinguishing the currency account and currency of settlement as in (b) is not clear. |
| 12/2/2005 | Turkey | Interest on index-linked debt instruments:
We agree with the recommendations made at the July 2005 meeting of the Advisory Expert Group on National Accounts. |
| 12/2/2005 | Turkey | Debt instruments linked to a foreign currency:
We agree with the recommendations made at the July 2005 meeting of the Advisory Expert Group on National Accounts. |
| 12/1/2005 | National Bank of Moldova | Debt instruments linked to a foreign currency:
In our opinion the debt instruments with both principal and coupons indexed to a foreign currency should be treated as though they are denominated in that foreign currency. |
| 12/1/2005 | United Kingdom | Interest on index-linked debt instruments:
We agree with the AEG's pragmatic conclusion on this issue. UK experts also have divided views but we are able to accept the AEG compromise. |
| 12/1/2005 | United Kingdom | Debt instruments linked to a foreign currency:
We agree with the AEG and BOPCOM conclusions. |
| 11/30/2005 | Slovak Republic | SO SR give support to AEG recommendation related to ongoing effort for clarification of issue. |
| 11/30/2005 | Italy | Interest onindex-linked debt instruments:
Istat fully agrees with the recommendations made at the July 2005 meeting of the Advisory Expert Group on National Accounts.
|
| 11/30/2005 | Italy | Debt instruments linked to a foreign currency:
Istat fully agrees with the recommendations made at the July 2005 meeting of the Advisory Expert Group on National Accounts.
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| 11/30/2005 | State Bank of Pakistan | Interest onindex-linked debt instruments:
We have gone through recommendations made by Advisory Expert Group (AEG) and fully agree with them.
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| 11/30/2005 | State Bank of Pakistan | Debt instruments linked to a foreign currency:
We have gone through recommendations made by Advisory Expert Group (AEG) and fully agree with them.
|
| 11/29/2005 | National Bank of Kazakhstan | Debt instruments linked to a foreign currency:
We suppose that method of reflecting of debt instruments indexed to foreign currency as debt instruments denominated in foreign currency is more acceptable. |
| 11/29/2005 | People's Bank of China | Interest on index-linked debt instruments:
I agree with your improvements and have no other suggestions. |
| 11/29/2005 | People's Bank of China | Debt instruments linked to a foreign currency:
I agree with your improvements and have no other suggestions. |
| 11/21/2005 | USA | Debt instruments linked to a foreign currency:
We agree with the recommendations of the AEG. |
| 11/21/2005 | USA | Interest on index-linked debt instruments:
We agree with the recommendations of the AEG. |
| 5/9/2005 | Australia | No AEG decision made. However, it is noted that the AEG "agreed that if a guarantee were to remain a contingent liability off the balance sheet, flows arising from its activation would be recorded as a capital transfer rather than being recorded in the other changes in volume of assets accounts as proposed". BOPTEG recommended that all flows arising from the activation of guarantees should be recorded in the Other Changes in Volume of Assets Account as opposed to recording the flows as transactions (see BOPTEG Outcome Paper #2: Activation of Guarantees). The ABS supports BOPTEG's recommendation. |
