The guidance in the1993 SNA about how transactions relating to index-linked debt instrument is
not precise. When the principal is indexed, the redemption value is not known until maturity; as a
result, interest flows are not known before maturity. What should be recorded for interest and
principal repayment in the period before maturity? Further, for some instruments, the indexation
may lead to valuation gains. How should these be recorded?
For debt instruments with both principal and coupons indexed to a foreign currency, the currency of account is important for distinguishing transactions from holding gains and losses. These may be different from an assessment made on the basis of the currency of settlement. Does this mean that debt indexed to foreign currency should be treated in the same way as foreign currency debt, that is as if denominated in foreign currency?
Loans with concessional interest rates could be seen as providing a transfer from lender to
borrower. Should such transfers be recognized in the SNA? Although there is no clear definition of
what is a concessional loan, the guidance in the External Debt Guide suggests features such as an intention to convey a benefit and occurrence in a noncommercial setting (usually government-togovernment). If concessional loans are not recognized in the core accounts, should the
concessional amounts be considered as supplementary information where they are significant?
Neither the 1993 SNA nor the Balance of Payments Manual discusses the issue of fees payable on securities lending and gold loans. The fee for securities lending is for putting a financial instrument at the disposal of another unit, but it does not fit with the definition of interest when the legal ownership is transferred but the economic risks and rewards of the ownership remain with the
original owner. The fee payable on gold loans appears to be a payment for services as gold in this
instance is non-monetary gold. |
