Foreign Currencies and Other Short-Term Assets

(Line 35) (Cont'd)

Scheduled Repayments on Credits (Line 36)

Nonscheduled Repayments on Credits (Line 37)

U.S. Private Capital Flows, NetDirect Investments Abroad (Line 39)

accrual basis; foreign currencies held by U.S. disbursing officers; and advances of the Exchange Stabilization Fund that are not part of reserve assets.

Excluded are changes in official reserve assets held by U.S. monetary authorities and discernible gains or losses on foreign currency balances.

Data sources are the same as for line 34.

This account measures collections of principal on the loans and other credits recorded in line 34. Also included are principal collections in liquidation of outstanding indebtedness formalized by intergovernmental agreement in settlement of assistance originally furnished under indeterminate terms and reported in line 30 and in settlement of claims of the U.S. Government or its nationals, when funds are collected by the Government for distribution to the claimants; collections on World War I debts; and recoveries of the Government's direct investment in productive facilities and installations abroad or on the equity holding of "public enterprise" accounts of Government agencies.

Excluded from this account are principal charged off as uncollectible; gains or losses on indebtedness denominated in foreign currency; sales of Export-Import Bank Portfolio Participation Certificates; and extraordinary amortizations that are included in line 37.

Data sources are the same as for line 34.

This account measures extraordinary amortizations, which include principal collections identified as occurring more than 3 months ahead of amortization schedule date stipulated in the repayment agreement and sales of the promissory note (or other evidences of indebtedness) to a third-party foreign participant, either in the country of the borrower or in a third country. Sales are recorded at the book value of the indebtedness liquidated. In many instances, Export-Import Bank has the contingent liability to repurchase such obligations previously sold. Beginning with 1967, collections from promissory notes sold to third countries are recorded in the geographical area of the third country; for earlier periods, such collections are recorded in the geographical area of the debtor. Excluded from this account are accelerated collections of foreign currency on credits repayable in foreign currency and sales of Export-Import Bank Portfolio Participation Certificates. Data sources are the same as for line 34.

This account measures capital transactions by U.S. residents with foreign enterprises in which the U.S. residents by themselves or in affiliation with other U.S. residents own 10 percent or more of the voting securities or of other ownership interests. The account also includes transactions of single or affiliated U.S. residents with foreign residents as the result of the acquisition of at least 10 percent or any additional ownership interest in foreign enterprises or the sale, total or partial, of a direct investment enterprise to a foreigner.

U.S. Private Capital Flows, NetDirect Investment Abroad (Line 39) (Cont'd)

Foreign Securities (Line 40)

Long-Term Claims Reported by U.S. Banks

(Line 41)

Short-Term Nonliquid Claims Reported by U.S. Banks (Line 42)

Included in capital transactions are net increases in capital stocks (voting and nonvoting) and capital contributions, in intercompany accounts, and in owners' home office account of foreign branches; excluded is the U.S. parents' share of the reinvested earnings of foreign incorporated affiliates. Funds used for U.S. direct investments abroad include, in addition to those originating in the United States from U.S. parents and their domestic subsidiaries, (1) funds utilized for direct investments that are borrowed abroad by U.S. parents and their domestic subsidiaries, (2) funds utilized for direct investment that are obtained from security issues sold abroad by Netherlands Antilles finance subsidiaries that are initially transferred to U.S. parents, and also (3) funds obtained through long-term debt issues placed by foreign affiliates with public and nonbanking institutional investors in the United States.

Data are based on reports (covering approximately 13,000 foreign affiliates) filed quarterly with BEA by over 1,100 U.S. respondents whose aggregate foreign direct investment (net worth and intercompany account) is $2,000,000 or more. To these data are added verified transactions of nonreporters.

This account measures net transactions (sales less purchases) between U.S. private residents and foreign residents in foreign equities and debt securities with no contractual maturity or with maturities of more than one year (net U.S. purchases are debit entries). Data for foreign securities are based on reports collected by the Federal Reserve System for the Treasury Department, with adjustments made for transactions that are included in other balance-of-payments accounts. On the basis of public market information and other data, BEA prepares estimates for two components of the total, sales of new foreign issues in the U.S. market to U.S. residents and redemptions of U.S. holdings of foreign securities.

This account measures changes in loans and other long-term claims on foreigners (with a contractual maturity of more than one year) which are reported by U.S. banks, including both the claims of the banks themselves and the claims held in custody for their domestic customers. Unutilized lines of credit and permanent capital invested abroad are excluded. The data are collected monthly by the Federal Reserve System for the Treasury Department.

This account measures changes in nonliquid claims on foreigners (with a contractual maturity of one year or less) which are reported by U.S. banks, including both the claims of the banks themselves and the claims held in custody for their domestic customers. The data are collected monthly by the Federal Reserve System for the Treasury Department. The following categories on the monthly reporting form for short-term claims are considered to be nonliquid: loans, collections outstanding (items in process of collection from foreigners), and acceptance credits (acceptances made for account of foreigners), all payable in dollars; plus short-term claims other than deposits, foreign government obligations, and commercial and finance paper, payable in foreign currencies.

Short-Term Liquid Claims Reported by U.S. Banks

(Line 43)

Long-Term Claims Reported by U.S. Nonbanking Concerns (Line 44)

Short-Term Nonliquid Claims Reported by U.S. Nonbanking Concerns (Line 45)

Short-Term Liquid Claims Reported by U.S. Nonbanking Concerns (Line 46)

Foreign Capital Flows, Net-Direct Investments in the United States (Line 48)

This account measures changes in liquid claims on foreigners (with a contractual maturity of one year or less), which are reported by U.S. banks, including both the claims of the banks themselves and the claims held in custody for their domestic customers. The data are collected monthly by the Federal Rezerve System for the Treasury Department. The following categories on the monthly reporting form for short-term claims are considered to be liquid: deposits, foreign government obligations, and commercial and finance paper, all payable in foreign currencies; plus short-term claims other than loans, collections outstanding, and acceptance credits, payable in dollars.

This account measures changes in loans and other long-term claims of U.S. nonbanking concerns on foreigners other than their foreign affiliates, which have a contractual maturity of more than one year. Such claims originate from long-term supplier's credits and other loans extended to foreigners. Data are obtained from quarterly reports collected by the Federal Reserve System for the Treasury Department on amounts outstanding at the end of the quarter.

This account measures changes in claims of U.S. nonbanking concerns on foreigners (other than claims on their foreign affiliates) that have a contractual maturity of one year or less from the date on which the obligation was incurred but are not repayable on demand nor readily marketable or transferable. Such claims include credits extended to foreigners by U.S. brokers to finance security transactions, and by U.S. corporations or other nonbanking concerns to finance exports and other transactions. Data are obtained from quarterly reports collected by the Federal Reserve System for the Treasury Department on amounts outstanding at the end of the quarter. This account measures changes in short-term liquid claims mainly of major U.S. corporations on foreigners other than their foreign affiliates. Short-term liquid claims, denominated in dollars and in foreign currencies, consist of (1) demand and time deposits held abroad, and (2) negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than one year from the date on which the obligation was incurred by the foreigner, including obligations of foreign governments. Loans which are repayable on demand are also included. Data are obtained from reports collected by the Federal Reserve System for the Treasury Department on amounts outstanding at the end of the period.

This account measures capital transactions of U.S. enterprises with foreign owners who control 25 percent or more of the voting securities or other ownership interests. The account also includes transactions of single or affiliated foreign residents with U.S. residents resulting from the acquisition of at least 25 percent ownership interest in U.S. enterprises or from total or partial sales. Included are net increases in capital stock (voting and nonvoting) and capital contributions, in intercompany accounts, and in owners' home office accounts of U.S. branches; excluded is the foreign parents' share of the reinvested earnings of their U.S. corporate affiliates.

Foreign Capital Flows, Net-Direct Investments in the United States (Line 48) (Cont'd)

U.S. Securities Other Than Treasury Issues

(Line 49)

U.S. Long-Term Nonliquid Liabilities to Private Foreigners Reported by U.S. Nonbanking Concerns (Line 50)

U.S. Short-Term Nonliquid Liabilities to Private Foreigners Reported by U.S. Nonbanking Concerns (Line 51)

U.S. Long-Term Liabilities to Private Foreigners Reported by U.S. Banks (Line 52)

Data are based on reports (covering approximately 350 U.S. affiliates) filed by U.S. companies in which the aggregate investment (net worth and intercompany account) by the foreign owner is $2,000,000 or more. To these data are added verified transactions of nonreporters.

This account measures net transactions (purchases less sales) between U.S. and foreign residents in U.S. equities and debt securities with no contractual maturity or with maturities of more than one year. Estimates for transactions are based on data collected by the Treasury Department, with adjustments made for transactions included in other balance-of-payments accounts. Major components are (1) U.S. corporate placements of debt securities in foreign markets, including proceeds transferred to U.S. parents from similar placements by their Netherland Antilles finance subsidiaries (estimated on the basis of BEA reports and other information); and (2) foreign net trading in U.S. equities and other long-term debt securities issued by corporations and local governments, and in nonguaranteed U.S. Government agency securities.

This account measures changes in liabilities of U.S. nonbanking concerns to foreigners (excluding liabilities to affiliated foreigners recorded as direct investments) that have a contractual maturity of more than one year after the date on which the obligation was incurred. Included are direct borrowing from foreign banks by U.S. companies and other loans and advances, whether payable in dollars or in foreign currencies. Estimates, based on reports collected by the Federal Reserve System for the Treasury Department, represent the change in amounts outstanding between the beginning and end of the period. Adjustments to Treasury Department data are made when necessary to account for proceeds of foreign longterm bank loans obtained by U.S. parent companies through their Netherland Antilles finance subsidiaries as reported to BEA.

This account measures changes in liabilities of U.S. nonbanking concerns to foreigners other than liabilities to affiliated foreigners recorded as direct investments-that become payable one year or less from the date the obligation was incurred. Such liabilities, payable in dollars or in foreign currencies, are (1) direct borrowing from foreign banks by U.S. companies; (2) accounts, notes, bills, and drafts payable to foreigners; and (3) advance payments received from foreigners for future delivery of goods or services even if such transactions are not completed until after one year. Estimates, based on reports collected by the Federal Reserve System for the Treasury Department, represent the change in amounts outstanding between the beginning and end of the period. Adjustments are made when necessary to account for proceeds of foreign short-term bank loans obtained by U.S. parent companies through their Netherland Antilles finance subsidiaries as reported to BEA.

This account measures changes in obligations to private foreigners reported by U.S. banks, for their own account and for others' accounts under their custody, with a contractual maturity of more than one year. Private foreigners include official international and regional organizations other than the International Monetary Fund (even if located in the United States),

foreign branches of U.S. banks, other foreign commercial banks, and other private residents. The data are collected monthly by the Federal Reserve System for the Treasury Department.

This account measures changes in obligations to foreign official agencies of reporting U.S. banks, for their own account and for others' accounts under their custody, with a contractual maturity of more than one year. Foreign official agencies include, in addition to reserve agencies (treasuries or finance ministries of central governments and recognized central banks), diplomatic and consular establishments, and other agencies of national governments. Separate data for reserve agencies are not available. The data are collected monthly by the Federal Reserve System for the Treasury Department.

This account measures net transactions representing collections for, and repayments against, deposit and security obligations of U.S. Government agencies to foreign official reserve agencies, when such deposits or obligations, bearing original maturities of more than 1 year, are payable prior to maturity only under special conditions. Some of the deposits represent funds placed in restricted accounts with the U.S. Government to be used only to liquidate U.S. claims as these claims reach maturity. Also included are changes in the outstanding amount of nonmarketable Treasury securities which are issued subject to redemption prior to maturity for the purpose of paying or prepaying for military purchases in the United States, and the obligations to the Government of Canada under the Columbia River basin agreements of 1964.

The bulk of the obligations entering into this entry represents nonmarketable securities issued by the Government through arrangements to improve the U.S. liquid liability position with other countries or to obtain convertible currencies for inclusion in the U.S. official reserve assets.

Transactions may be in U.S. dollars or in foreign currencies. Repayments of obligations are recorded at book value, with the exception that an estimated book value is calculated by BEA to reflect any formal exchange rate revaluation which may have affected the U.S. dollar equivalent value of an obligation denominated and/or repayable in foreign currencies. Data are compiled from reports furnished by operating agencies and from published statements and financial and operating records of Government agencies.

This account measures net transactions representing collections for, and "repayments" against, deposit and security obligations of U.S. Government agencies to other than foreign official reserve agencies. "Repayments" include deliveries of goods or rendering of services by U.S. Government agencies; the bulk of the deposits is in prepayment for such purchases (mainly of military equipment) by foreign governments.

Liabilities include deposits associated with military sales contracts; deposit and trust funds with the U.S. Government under prepayment sales operations of nonmilitary agencies;