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Public Notice on Balance of Payments and Securities Investment at Home and Abroad (Contract Base)

Public Notice on Balance of Payments and
Securities Investment at Home and Abroad (Contract Base)


1. Publication of Data Concerning the Banking Sector Inter-Office Account

Starting with the balance of payments statistics for January 2001, the"loans" category in the"financial account" will undergo further breakdown: a new sub-category named the"banking sector inter-office account."

Note. While the loans category includes the amounts of loans provided by headquarters of banks to their branches abroad, publication of such data concerning the inter-office account for the banking sector will allow users of our statistics to be better informed about the loans category.


2. Partial Review of the Recording Method Regarding the Sale and Purchase of Loan Credit

Starting with the balance of payments statistics for January 2001, the recording method regarding the sale and purchase of loan credit between residents and nonresidents will be partially modified.
    Specifically, when loan credit owned by a resident is sold at a discount to a nonresident, the current method requires the book value of that loan credit to be recorded in the loans category of the financial account, while recording the amount of discount (i.e., the balance between the book value and the selling price) in the capital account. Under the new method, however, only the selling price of the loan credit will be recorded in the loans category of the financial account. (For more details, see Appendix 1)

Note. Japan's balance of payments data are presented in accordance with the fifth edition of the"Balance of Payments Manual" issued by the International Monetary Fund (IMF). However, since the Manual does not specify how such transactions as mentioned above should be presented, we have continued to consult the Statistics Department of the IMF, and have recently received its final reply. The above review of presentation is based on this reply.


Weekly Publication of Securities Investment at Home and Abroad (Contract Base)

Starting with the statistics for April 2001, a certain part of the “Securities Investment at Home and Abroad (Contract Base)" statistics will be publicized on a weekly basis for the convenience of users of statistics.

3-1. Method of publication
    Of the above mentioned statistics, the data of the week (Monday-Friday), except for Appendix (Securities Investment Abroad by Institutional Investors), will be publicized, in principle, at 8:50 a.m. on the fourth business day counting from the first business day of the week that follows (i.e., Week 2).
    However, when the week (i.e., Week 1) has only two business days or less, the data will be combined with the data for the following week (i.e., Week 2) and publicized on the fourth business day counting from the first business day of the week after (i.e., Week 3).
    The data that are currently publicized on a monthly basis will continue to be publicized in the same manner. (Date of publication is usually the seventh business day of the following month.)

3-2. Scheduled start of the new publication system
    This system is scheduled to be implemented on Thursday, April 12, 2001, with the publication of the data for the first week of April (April 2-6).

3-3. Format of publication
    See Appendix 2.


(Appendix 1) Partial Review of the Recording Method Regarding the Sale and Purchase of Loan Credit

<Example> When resident A who owns loan credit (worth 100 in book value) to resident B sells that credit to a nonresident for 80:

1. Pre-review (i.e., current method)

a. Currency and deposits/ Financial account -80 (increase in assets)
b. Loans/Financial account +100 (increase in liabilities)
c. Capital account (Net balance) -20
  1. The amount received from the nonresident (80) is regarded as an increase in assets of resident A, and is thus recorded in the"currency and deposit" category.

  2. On the part of resident B, the transaction results in the new borrowing debt from the nonresident. This borrowing debt, regarded as an increase in liabilities of resident B and thus recorded in the loans category, is presented in the book value of the original loan credit (100).

  3. The difference between the book value of the loan credit and its selling price -- 20 -- is regarded as capital transfer to the nonresident with no countervalue, and is thus recorded in the capital account.

2. Post-review (i.e., new method)

a. Currency and deposits/ Financial account -80 (increase in assets)
b. Loans/Financial account +80 (increase in liabilities)
  1. The amount received from the nonresident (80) is regarded as an increase in assets of resident A, and is thus recorded in the"currency and deposit" category.

  2. On the part of resident B, the transaction results in the new borrowing debt from the nonresident. This debt, regarded as an increase in liabilities of resident B and thus recorded in the loans category, is now presented in the selling price of the loan credit (80)


Press Release, Ministry of Finance
(Appendix 2)April 12, 2001
Securities Investment at Home and Abroad (Contract Base, Weekly)

1. Inward Securities Investment
(Unit : 100 Million Yen)

 

Stocks Bonds & Beneficiary Certificates
(excl. short-term securities)
Total
Acquisition Disposal Net Acquisition Disposal Net Net
2~6 April
(5 business days)
# # # # # # # # # # # # # # # # # # # # #
9~13 April
(5 business days)
             
16~20 April
(5 business days)
             
23~27 April
(5 business days)
             


2. Securities Investment Abroad

(Unit : 100 Million Yen)

 

Stocks Bonds & Beneficiary Certificates
(excl. short-term securities)
Total
Acquisition Disposal Net Acquisition Disposal Net Net
2~6 April
(5 business days)
# # # # # # # # # # # # # # # # # # # # #
9~13 April
(5 business days)
             
16~20 April
(5 business days)
             
23~27 April
(5 business days)
             
Notes:

 ### indicates where figures will be displayed.
Figures with "*" are revised data.
The next release is scheduled on Thursday, April 19.