External debt

External debt is a macroeconomic statistic that comprises non contingent liabilities vis à vis non residents that require the payment of principal and/or interest in the future. It is compiled in accordance with the international guidelines of the IMF set out in External Debt Statistics: Guide for Compilers and Users. The concepts and definitions in this guide are fully consistent with those contained in the System of National Accounts (SNA) and in the Balance of Payments and International Investment Position Manual (BPM), while being restricted to debt instruments and to resident liabilities vis à vis non residents.

Accordingly, external debt covers a more restricted set of financial liabilities than those included in the liabilities of the International Investment Position (IIP). Of all the financial instruments covered by the IIP, equity instruments, financial derivatives and monetary gold bars are excluded from external debt.

A distinction is made between gross external debt and net external debt. Gross external debt is defined as the outstanding amount, at a given point in time, of non-contingent financial liabilities assumed by residents of an economy vis à vis non residents, requiring future payments of principal, interest or both. Net external debt is obtained by deducting holdings of external financial assets in the form of debt instruments from gross external debt.

External debt is compiled on a quarterly basis, and detailed information is disseminated by instrument, institutional sector and main currencies. Debt related to direct investment (intercompany lending) is shown separately, since, by its very nature, it may reflect a different degree of vulnerability compared with other types of debt.

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Categories: External statistics