## Balance of Payments Task Team (BPTT): Progress and Next Steps — Second (virtual) Meeting November 20, 2020 ## Source details **Canonical URL:** [Balance of Payments Task Team (BPTT): Progress and Next Steps — Second (virtual) Meeting November 20, 2020](https://www.imf.org/-/media/files/data/statistics/bpm6/bptt/bptt-second-meeting-presentation-november-20-2020.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bpm6/bptt/bptt-second-meeting-presentation-november-20-2020.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bpm6/bptt/bptt-second-meeting-presentation-november-20-2020.pdf.json) --- ### Introduction and Overview - Event: Second (virtual) meeting of the Balance of Payments Task Team (BPTT). - Date: November 20, 2020. - Organizing institution: IMF | Statistics. - Meeting outline included: Introduction; Summary of Discussions of the BOPCOM meeting and Next steps; BPTT GNs preparation; Review of GNs of other TTs. ### BPTT role and review process - BPTT reviews all Guidance Notes (GNs) produced by all other—both BPM and joint BPM/SNA—Task Teams (TTs). - Objectives of 1st BPTT/AEG review: - 1) Focus only on substantive issues before the notes go to public consultation, especially if strong disagreement with recommendations. - 2) Assess whether questions to the Committee (and to the ISWGNA/AEG where relevant) in the GNs go in the right direction. - BPTT review is not meant to provide answers to the questions; final answers will be possible for Committee (and AEG) members during the last review, including results of the public consultation. - Holistic approach: - BOPCOM will undertake a holistic assessment at the end of the process to assess overall consistency of proposals. - Priorities will need to be established if too much is asked of compilers (e.g., number of supplementary presentations). - Timing for holistic assessment: by March 2022 (when the mandate of CATT, DITT, and FITT will expire). ### Summary of BOPCOM meeting discussions (October 26–29, 2020) - Number of Guidance Notes presented for discussion: Ten. - Number of GNs approved: Eight. - Approved by groups: BPTT (1), CATT (2), DITT (3), and FITT (2). - Specific outcomes and follow-up: - C.1 Recording Transactor-Based Components of Services: CATT to reconsider the topic and revise the GN in light of the discussions. - C.11 Valuation of Imports and Exports (CIF-FOB Adjustments): GZTT to seek volunteer countries from the SNA and the BPM community to undertake a feasibility test concerning access to the required data. - Approved GNs will be part of the proposed annotated outline of BPM7 (with suggested modifications and after a final review of BOPCOM, in some cases). - Materials: Summary of Discussions and papers presented to BOPCOM for discussion (as well as for information) are posted on the IMF BOPCOM website. ### Findings and next steps on specific Guidance Notes - BPTT GN B.4: Reconciliation Between Flows and Stocks - Majority support to make the integrated IIP a central piece of the BPM7 by including it under standard components. - Strong support to present “other changes in volume” with a total and two encouraged “of which” categories: “Reclassifications” and “Debt Cancellations and Write-offs”. - Updated BPM6 Compilation Guide to include practical guidance on integrated IIP compilation. - BPTT to finalize the GN considering Committee comments, stating the final recommendations—in consultation with the Committee (via written procedure). - The (updated) GN will be part of the proposed annotated outline of BPM7. - CATT GNs: C.2 and C.5.1 - C.2 Goods, Services, and investment income Accounts by Enterprise Characteristics: - Full agreement to include enterprise characteristics as part of the annual reporting of the current account, as supplementary items. - CATT to finalize the GN considering Committee comments, stating final recommendations—in consultation with the Committee (via written procedure). - The (updated) GN will be part of the proposed annotated outline of BPM7. - C.5.1 Statistical Impact of the Change in Treatment of Operating Leases in Business Accounting: - Strong support to maintain the status quo and not to make any changes to the BPM6/2008 SNA. - CATT to send the revised version to AEG for comments before final posting. - Decision may be revisited subject to the outcome of GN C5.2 (Economic ownership in the context of financial and operating lease transactions pertaining, in particular, to aircrafts). - Final GN covering C5.1 and C5.2 will be part of the proposed annotated outline of BPM7. - DITT GNs: D.6, D.7, and D.9 - D.2 Ultimate Investing Economy/Ultimate Host economy and Identifying Pass-through Capital: - Full agreement with the development of supplemental presentations of DI statistics by ultimate partner economy and identifying pass-through fund. - DITT in collaboration with GZTT to develop the template for recording data on UIE, UHE, and pass-through funds. - D.7 Sectoral Breakdown of Direct Investment: - Strong support for the proposal to introduce the sectoral breakdown for DI as standard component in the balance of payments and the IIP. - D.9 Reconciling BPM-based Direct Investment and AMNE Statistics: - Strong support for developing a framework for reconciling DI and AMNE statistics for possible inclusion in the BPM7 and launching a survey to gather feedback from compilers. - DITT to finalize the GNs (D.6, D.7, and D.9) considering Committee comments, stating final recommendations—in consultation with the Committee (via written procedure). - The (updated) GNs will be part of the proposed annotated outline of BPM7. - FITT GNs: F.5 and F.8 - F.5 Treatment of Credit Default Swaps: - Committee supported the proposal to maintain the current treatment of CDS as option-type. - FITT to consider the Committee guidance in the context of work on F.4 Financial Derivatives by Type. - F.8 Valuation of Debt Securities at Both Market and Nominal Value: - Strong support for strengthening guidance in BPM6 and 2008 SNA for presenting stocks of debt securities. - Agreed on the need for clarifying the definition of nominal value and strengthening its consistency across macroeconomic statistics manuals. - FITT to finalize the GNs considering Committee comments, stating final recommendations. - The (updated) GNs will be part of the proposed annotated outline of BPM7. ### Timeline for next Committee and BPTT meetings (2021) - Three Committee meetings scheduled in 2021: - February 22–24 - June 21–24 - October 26–28 - Expectations of Guidance Notes by meeting: - February 2021 Meeting: - BPTT: 4 GNs - Other TTs: 11 GNs - June 2021 Meeting: - BPTT: 5 GNs - Other TTs: 15 GNs - October 2021 Meeting: - BPTT: 24 GNs (noted in source as "2 4GNs") - Other TTs: 13 GNs ### Timeline for BPTT’s Guidance Notes (detailed deadlines) - February 2021 Meeting (To BPTT for review by December 20, 2020; To BOPCOM for approval by February 15, 2021) - 1. B.2 Standardized definition of net international reserves/revisit reserves-related liabilities definition - 2. B.3 Treatment of currency unions - 3. B.7 Arrears in IIP - 4. B.9 Treatment of tax amnesty in external sector statistics - June 2021 Meeting (To BPTT for review by March 15, 2021; To BOPCOM for approval by June 4, 2021; To AEG for review: Yes where indicated) - 1. B.1 Nationality concept - 2. B.5 International account supporting the analysis of welfare - 3. B.8 Recording citizenship by investment programs - 4. B.11 Other economic flows on insurance and pension reserves - 5. B.12 Treatment of illiquid equity in international organizations in the IIP - October 2021 Meeting (To BPTT for review by August 10, 2021; To BOPCOM for approval by October 11, 2021) - 1. B.6 Sustainable finance - 2. B.10 Auxiliary reconciliation tables ### Timeline for Other Task Teams’ Guidance Notes (selection of deadlines) - February 2021 Meeting: - CATT: 2 GNs (To BPTT for review: November 2020; To BOPCOM for approval: February 2021) - DITT: 7 GNs (To BPTT for review: By November 23, 2020; To BOPCOM for approval: By December 7, 2020; To AEG: 2; To WGIIS: 5) - FITT: 2 GNs (To BPTT for review: By November 23, 2020; To BOPCOM for approval: By February 5, 2021; To AEG: 2) - June 2021 Meeting: - CATT: 6 GNs (To BPTT for review: February 2021; To BOPCOM for approval: April 2021; To AEG: 4) - DITT: 4 GNs (To BPTT for review: By April 7, 2021; To BOPCOM for approval: By June 4, 2021; To WGIIS: 4) - FITT: 5 GNs (To BPTT for review: By March 15, 2021; To BOPCOM for approval: By June 4, 2021) - October 2021 Meeting: - CATT: 1 GN (To BPTT for review: August 2021; To BOPCOM for approval: October 2021) - DITT: 5 GNs (To BPTT for review: By August 10, 2021; To BOPCOM for approval: By August 10, 2021; To AEG: 2; To WGIIS: 3) - FITT: 7 GNs (To BPTT for review: By August 10, 2021; To BOPCOM for approval: By October 11, 2021) --- _Source: https://www.imf.org/-/media/files/data/statistics/bpm6/bptt/bptt-second-meeting-presentation-november-20-2020.pdf_