External Debt Statistics

External Debt Statistics
Front Matter

Front Matter

Author(s):
International Monetary Fund. Statistics Dept.
Published Date:
June 2014
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    GUIDE

    EXTERNAL DEBT STATISTICS

    GUIDE FOR COMPILERS AND USERS

    INTERNATIONAL MONETARY FUND

    © 2014 International Monetary Fund

    Cataloging-in-Publication Data

    External debt statistics: guide for compilers and users / Inter-Agency Task Force on Finance Statistics. – Washington,

    D.C.: International Monetary Fund, 2014.

    pages.; cm.

    Includes bibliographical references.

    ISBN 978-1-48436-6622

    1. Debts, Public —Statistics—Handbooks, manuals, etc. 2. Debts, Public—Statistical methods—Handbooks, manuals, etc. I. International Monetary Fund.

    HJ8011.E75 2014

    ISBN: 978-1-48436-6622 (paper)

    978-1-48434-8970 (ePub)

    978-1-48435-5961 (Mobi pocket)

    978-1-48438-5586 (web PDF)

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    Contents

    Foreword

    This volume, External Debt Statistics: Guide for Compilers and Users (Guide), has been prepared under the joint responsibility of the nine organizations in the Inter-Agency Task Force on Finance Statistics. The preparation of the Guide was based on the broad range of experience of our institutions in close consultation with national compilers of external debt, balance of payments, and international investment position statistics.

    International financial crises in recent years and the associated external debt levels in many countries underscored the importance of reliable and timely statistics on external debt as a critical element for the early detection of countries’ external vulnerability. Against this background, improving the quality and timeliness of key external debt data and promoting convergence of recording practices have been the focus in the preparation of the Guide. The Guide is a useful source of reference both for national compilers and users of external debt statistics.

    The Guide updates the previous international guidelines on external debt statistics, External Debt Statistics: Guide for Compilers and Users published by our organizations in 2003. The concepts set out in the Guide are harmonized with those of the System of National Accounts 2008 and the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual, published in 2009.

    I recommend that countries adopt the Guide as the basis for compiling and disseminating external debt statistics.

    Christine Lagarde

    Managing Director

    International Monetary Fund

    Preface

    The need for comprehensive, internationally comparable, and reliable information on external debt to inform policymakers, financial markets, and other users of statistics has long been recognized. This was once again reinforced by the international financial crises that started in 2007. Because they carry obligations to make future payments, external debt liabilities have the potential to create circumstances that render an economy vulnerable to solvency and liquidity problems. Moreover, as experience has shown, external vulnerability can have widespread economic costs, and not just for the initially affected economy. It is clear, therefore, that external debt needs to be measured and monitored. To this end, the External Debt Statistics: Guide for Compilers and Users (Guide) provides guidance on (1) the concepts, definitions, and classifications of external debt data; (2) the sources and techniques for compiling these data; and (3) the analytical uses of these data. The Guide is intended to be of use to both compilers and users of external debt statistics.

    Evolution of This Guide

    The previous international guidance on external debt statistics, External Debt Statistics: Guide for Compilers and Users (2003 Guide)1 provided a comprehensive conceptual framework, derived from the System of National Accounts 1993 (1993 SNA) and the fifth edition of the IMF’s Balance of Payments Manual (BPM5) for the measurement of gross external debt of the public and private sectors. However, since its publication the international statistical guidelines for national accounts and balance of payments statistics have been updated—the System of National Accounts 2008 (2008 SNA) and the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6).

    Against this background, the Guide maintains but updates the conceptual framework introduced in the 2003 Guide. The changes include modifications in concepts, classification/sectorization, and/or clarifications to the methodological treatment.

    The Guide is intended to provide clear and comprehensive guidance for the measurement and presentation of external debt statistics that can be applied consistently across the different sectors of an economy and across the different debt instruments used for borrowing. Thereafter, the Guide provides a scheme for classifying external debt by instruments and sectors that is developed into a presentation table for the gross external debt position. Data disseminated using this presentation table, and employing the concepts outlined earlier in the Guide, are essential for providing a comprehensive and informed picture of the gross external debt position for the whole economy. For countries in which there is a particular interest in public sector debt, the sector information can be rearranged to give focus to public and publicly guaranteed external debt, consistent with the approach used by the World Bank’s Debtor Reporting System (DRS) and Quarterly Public Sector Debt Statistics (PSD) database. Such a presentation may be of central importance where public sector external debt is dominant, although vigilance in monitoring private sector debt liabilities is necessary because experience has shown that these may grow rapidly.

    Further, from the evidence of the international financial crises, and from the experience of many countries, additional data series may be vital to assist in identifying potential vulnerability to solvency and liquidity problems arising from the gross external debt position. The important need for data on debt-maturity profiles, currency breakdowns, and short-term remaining maturity has been highlighted in international forums and, together with improving coverage of private-sector debt liabilities, has helped to motivate preparation of the Guide. So, the Guide provides additional conceptual guidance, and presentation tables, for data series such as the debt-service schedule (especially relevant for liquidity analysis), the currency composition of debt, and other series known from experience to be of analytical use. The Guide also explains the concept of net external debt—i.e., a comparison of the stock of external debt with holdings of external financial assets of similar instrument type—and integrates financial derivatives and contingent liabilities positions into external debt analysis. The World Bank’s Quarterly External Debt Statistics (QEDS), developed in 2004 for subscribers of the Special Data Dissemination Standard (SDDS) and extended in 2008 to countries participating in the General Data Dissemination System (GDDS), closely follow the conceptual framework provided in the Guide.

    Drawing on the broad range of experience in the international agencies involved in its production, the Guide provides advice on the compilation of external debt statistics and the analytical use of such data. This advice is not intended to be comprehensive but rather provides an overview of the issues. Because the Guide is primarily intended to be a source of reference for both compilers and users of external debt statistics, certain sections will be more relevant for some audiences than others. For instance, the first section discusses complex conceptual measurement issues and provides detailed advice as a source of reference—this guidance is intended particularly for the compiler. In contrast, the section on the use of external debt data is directed toward both users and compilers. It is hoped that by this approach, the Guide will contribute to better external debt statistics and an improved understanding of the complex issues involved in both compiling and analyzing them.

    Stephen G. Cecchetti

    Economic Adviser and Head of the Monetary and

    Economic Department

    Bank for International Settlements

    Arindam Roy

    Adviser and Head (Debt Management)

    The Commonwealth Secretariat

    Aurel Schubert

    Director General Statistics

    European Central Bank

    Walter Radermacher

    Director General

    Eurostat

    Mr. Louis Marc Ducharme

    Director

    Statistics Department

    International Monetary Fund

    Martine Durand

    Chief Statistician and Director of Statistics

    Directorate

    Organisation for Economic Co-operation and Development

    Clotilde L’Angevin

    Secretary-General

    The Paris Club Secretariat

    Alfredo Calcagno

    Officer-in-Charge, Division on Globalization and

    Development Strategies

    The United Nations Conference on Trade and

    Development

    Grant James Cameron

    Acting Director

    Development Data Group

    The World Bank Group

    The 2003 Guide was prepared by the Bank for International Settlements (BIS), Commonwealth Secretariat (ComSec), European Central Bank (ECB), European Commission (Eurostat), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), Paris Club Secretariat, United Nations Conference on Trade and Development (UNCTAD), and World Bank.

    Acknowledgments

    The production of the Guide has been jointly undertaken by the international agencies that participate in the Inter-Agency Task Force on Finance Statistics (TFFS), in close consultation with national compilers of external debt and balance of payments and international investment position statistics. The TFFS is one of the interagency task forces formed under the aegis of the United Nations Statistical Commission and the Administrative Committee on Coordination—Sub-Committee on Statistical Activities and was set up in 1992. It was reconvened in 1998 to coordinate work among the participating agencies to improve the methodological soundness, transparency, timeliness, and availability of data on external debt and international reserve assets. The TFFS is chaired by the IMF, and the work on the Guide involved representatives from the Bank for International Settlements (BIS), the Commonwealth Secretariat (ComSec), the European Central Bank (ECB), the European Commission (Eurostat), the IMF, the Organization for Economic Co-operation and Development (OECD), the Paris Club Secretariat, the United Nations Conference on Trade and Development (UNCTAD), and the World Bank. The core participants in the TFFS’s work on the Guide are listed below (affiliations are those in effect at the time of preparation of the Guide). Their expert contributions and comments made possible the production of the Guide.

    ChairMr. Robert Heath, Deputy Director, Statistics Department, IMF
    BISMr. Philip Wooldridge, Head of International Banking and Financial Statistics
    Mr. Karsten von Kleist, Deputy Head of International Banking and Financial Statistics
    Commonwealth SecretariatMr. Walton Gilpin, Adviser, and Mr. Mac Banda, Business Analyst, both from Debt Management, Special Advisory Services Division
    ECBMr. Remigio Echeverría, Senior Adviser, Directorate General Statistics
    Mr. Jorge Diz-Dias, Principal Economist Statistician, Macroeconomic Statistics Division, Directorate General Statistics
    EurostatMs. Daniela Comini, Directorate C, National Accounts, Prices, and Key Indicators
    Ms. Isabel Gancedo, Allini, Directorate D, Government Finance Statistics
    IMFMr. Eduardo Valdivia-Velarde, Deputy Chief, Balance of Payments Division, Statistics Department
    Ms. Rita Mesías and Marcelo Dinenzon, both Senior Economists, Balance of Payments Division, Statistics Department
    OECDMs. Yasmin Ahmad, Principal Administrator, Development Co-operation Directorate
    Ms. Isabelle Ynesta, Principal Statistician, Statistics Directorate
    Paris Club SecretariatMs. Clotilde L’Angevin, Secretary-General
    UNCTADMr. Balliram Baball, Training Coordinator/Senior Debt Management Expert
    World BankMr. Ibrahim Levent, Senior Information Officer, Financial Data Team, Development Data Group

    The preparation of the Guide was primarily undertaken in the IMF. Mr. Eduardo Valdivia-Velarde (Deputy Chief, Balance of Payments Division, Statistics Department) and Ms. Rita Mesías and Mr. Marcelo Dinenzon (both Senior Economists, Balance of Payments Division, Statistics Department) were the primary drafters and coordinated and edited the contributions of TFFS participants, national agencies, and other experts. The work was supervised by Mr. Robert Heath (Deputy Director, Statistics Department) and Mr. Ralph Kozlow (Chief, Balance of Payments Division, Statistics Department). Other staff from the Statistics Department contributed to the program: Mr. Mark Van Wersch (Senior Economist, Data Dissemination and Review Division), Mr. Robert Dippelsman (Deputy Chief, Government Finance Division), Ms. Sagé de Clerck and Mr. Tobias Wickens (both Senior Economists, Government Finance Division), Mr. Artak Harutyunyan (Deputy Chief, Financial Institutions Division), and Mr. José María Cartas, Mr. Thomas Elkjaer, Mr. Richard Walton, and Ms. Xiu-zhen Zhao (all Senior Economists, Financial Institutions Division).

    Staff from other IMF departments also contributed. In particular, Mr. Carlos Janada (Senior Economist, Finance Department), Mr. Sarosh Khan (Projects Officer, Finance Department), Mr. Geremia Palomba (Deputy Division Chief, Fiscal Affairs Department), Mr. Nathaniel Arnold and Ms. Christine Richmond (both Economists, Fiscal Affairs Department), Ms. Delphine Moretti (Technical Assistance Advisor, Fiscal Affairs Department), Ms. Eriko Togo (Senior Financial Sector Expert, Monetary and Capital Markets Department), Mr. Myrvin Anthony (Senior Economist, Monetary and Capital Markets Department), Ms. Suman Basu (Senior Economist, Research Department), Ms. Alison Stuart and Mr. Said Bakhache (both Deputy Division Chiefs, Strategy, Policy, and Review Department), Mr. Tetsuya Konuki (Senior Economist, Strategy, Policy, and Review Department), Ms. Karina Garcia and Nicolas Million (both Economists, Strategy, Policy, and Review Department), Ms. Yan Sun-Wang (Senior Research Officer, Strategy, Policy, and Review Department), and Mr. Jayendu De (Research Officer, Strategy, Policy, and Review Department).

    The Guide benefited from the written contributions of other experts in the participating agencies; in particular:

    Commonwealth SecretariatMr. Carilus Odumbe and Dr. Sanjay Lollbeharree, both Advisers, Debt Management Section
    ECBMs. Julia Catz, Adviser, Macroeconomic Statistics Division, Directorate General Statistics, and Mr. Nuno Silva, Principal Economist Statistician, External Statistics Division, Directorate General Statistics
    EurostatMr. John Verrinder, Head of Unit D3-Excessive Deficit Procedure 2, Directorate D, Government Finance Statistics
    OECDMr. Hans Blommestein, Head of Bond Market and Public Debt Management Unit, Directorate for Financial and Enterprise Affairs; Mr. Nadim Ahmad, Head of Trade and Competitiveness Statistics, Statistics Directorate; and Ms. Michèle Chavoix-Mannato, Head of Quarterly National Accounts & Financial Statistics Section, Statistics Directorate
    UNCTADMr. Gabor Piski, Project Manager, DMFAS Programme; Ms. Roula Katergi, User Representative, DMFAS Programme; Mr. Gerry Teeling, Chief, DMFAS Programme; Ms. Yuefen Li, Head, Debt and Development Finance Branch; and Ms. Aurelie Legrand, Project Manager
    World BankMs. Evis Rucaj, Statistical Officer, Financial Data Team, Development Data Group

    Mr. Roderico De Nitti (Balance of Payments Division, Statistics Department, IMF) provided administrative support in preparing the manuscript. Also, the TFFS acknowledges, with gratitude, the contributions of many compilers and users of external debt statistics in member countries, in particular, Australia, Canada, Dominican Republic, Japan, Mozambique, Norway, Pakistan, and the Philippines. Responses to requests for comments on the draft Guide posted on the Internet in September and November 2012 came from many official agencies and others in countries across the world, and the text benefited enormously from these contributions.

    Abbreviations

    AfDB

    African Development Bank

    BIS

    Bank for International Settlements

    BOPSY

    Balance of Payments Statistics Yearbook (IMF)

    BPM5

    Fifth edition of the Balance of Payments Manual (IMF)

    BPM6

    Sixth edition of the Balance of Payments Manual and International Investment Position Manual (IMF)

    BPM6 Compilation Guide

    Balance of Payments and International Investment Position Compilation Guide

    CACs

    Collective action clauses

    CBDMS

    Computer-based debt-management system

    CDIS

    Coordinated Direct Investment Survey (IMF)

    CDS

    Credit default swaps

    CIRRs

    Commercial Interest Reference Rates (OECD)

    ComSec

    Commonwealth Secretariat

    CP

    Commercial paper

    CPIS

    Coordinated Portfolio Investment Survey (IMF)

    CRS

    Creditor Reporting System (OECD)

    DAC

    Development Assistance Committee (OECD)

    DRS

    Debtor Reporting System (World Bank)

    DSA

    Debt sustainability analysis

    ECB

    European Central Bank

    ESA95

    European System of Accounts, ESA 1995

    ESA2010

    European System of Accounts, ESA 2010

    ESOs

    Employees stock options

    EU

    European Union

    FISIM

    Financial intermediation service charge indirectly measured

    GDDS

    General Data Dissemination System

    GDP

    Gross domestic product

    GFSM

    Government Finance Statistics Manual (IMF)

    HIPC

    Heavily Indebted Poor Countries

    IBRD

    International Bank for Reconstruction and Development

    IBS

    International Banking Statistics (BIS)

    IDA

    International Development Association

    IFMS

    Integrated Financial Management System

    IFS

    International Financial Statistics (IMF)

    IIP

    International investment position

    IMF

    International Monetary Fund

    ISIN

    International security identification number

    JEDH

    Joint External Debt Hub

    LIBOR

    London interbank offered rate

    LICs

    Low income countries

    MACs

    Market access countries

    MDRI

    Multilateral Debt Relief Initiative

    MFSM

    Monetary and Financial Statistics Manual (IMF)

    MMFs

    Money market funds

    NIFs

    Note issuance facilities

    NNA

    National numbering agency

    NPISH

    Nonprofit institutions serving households

    ODA

    Official development assistance

    OECD

    Organisation for Economic Co-operation and Development

    OTC

    Over-the-counter [markets]

    PSDS Guide

    Public Sector Debt Statistics: Guide for Compilers and Users

    QEDS

    Quarterly External Debt Statistics (World Bank)

    Repo

    Repurchase agreement

    RUFs

    Revolving underwriting facilities

    SDDS

    Special Data Dissemination Standard

    SDDS Plus

    Special Data Dissemination Standard Plus

    SDRs

    Special drawing rights (IMF)

    1993 SNA

    System of National Accounts 1993

    2008 SNA

    System of National Accounts 2008

    SPE

    Special purpose entity

    TFFS

    Inter-Agency Task Force on Finance Statistics

    UNCTAD

    United Nations Conference on Trade and Development

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