Document ID: chunk:federal_register_of_legislation:F2017L01022:body:0:p14
Version: federal_register_of_legislation:F2017L01022
Segment Type: other
Provision Reference: 
Character Range: 37953–40358

guaranteed payment by endorsing the bill) is used as the criterion for geographical allocation.

For the purposes of the locational statistics, it is recommended that suppliers' credits be allocated according to the residence of the drawee of the relevant trade bills, as the drawee is the final recipient of the credit extended.

Reporting entities may acquire external trade bills 'à forfait' and 'en pension'. An 'à forfait' purchase is an outright purchase that absolves the seller/presenter of the bills from any obligation should the drawee fail to honour the bill when it matures. When the drawee is a non-resident, such bills should similarly be considered to be external assets, irrespective of the residence of the presenter.

An 'en pension' acquisition involves a reporting entity purchasing a foreign trade bill under a sale and repurchase agreement with the domestic exporter whereby the reporting entity must or may return the bill to the exporter on, or prior to, the maturity date. If the return of the bill is optional, the bill is recorded in the balance sheet of the purchaser as a claim on the drawee. If the bill must be returned, the instrument remains in the balance sheet of the seller and the transaction can be regarded as an advance to the domestic exporter that should not be included in the locational statistics as a foreign asset.

Trustee business
Funds received by reporting entities on a trust basis represent international liabilities that fall into the category of loans and deposits. Funds on-lent or deposited on a trust basis in reporting entities' own name, but on behalf of third parties, with non-residents in any currency or with residents in foreign currency, represent international assets which also fall into the category of loans and deposits. In addition, international securities issued by reporting entities in their own name but on behalf of third parties, or funds invested on a trust basis in international securities and held in the reporting entities' own name but on behalf of third parties, represent international assets and liabilities that should be included in the categories of 'debt securities' and 'other' assets and liabilities as described above. Trustee business with residents in AUD should also be reported.

Note: Trustee business does not refer to unit trusts.

Unallocated sector refers to where the counterparty sector is unknown.