16.1 The recording of exceptional financing transactions in the balance of payments is relevant in the context of analytical presentation described in Chapter 14, paragraphs 14.16 and 14.17, and in Appendix 1 of the BPM6. The analytic presentation is used also in the IMF’s publication Balance of Payments Statistics Yearbook and International Financial Statistics. Exceptional financing combines financial transactions under financial arrangements made by the authorities (or by other sectors fostered by the authorities) of an economy to meet balance of payments needs. These transactions can be viewed as an alternate to or in conjunction with the use of reserve assets and IMF credit and loans to deal with payments imbalances. Appendixes 1 and 2 of the BPM6 provide details on exceptional financing transactions and also on transactions related to debt reorganization that give rise to exceptional financing. The analytic presentation of balance of payments statistics aims to distinguish between transactions in reserves (and closely related items) and other transactions, and draws a line between the ways that monetary authorities finance balance of payments needs (below the line) and all other transactions (above the line).