## Balance of Payments Task Team (BPTT): Progress and Next Steps — Third (virtual) Meeting, April 13, 2021

## Source details

**Canonical URL:** [Balance of Payments Task Team (BPTT): Progress and Next Steps — Third (virtual) Meeting, April 13, 2021](https://www.imf.org/-/media/files/data/statistics/bpm6/bptt/bptt-third-meeting-presentaion-april-13-2021.pdf)

## Other formats

- [Markdown version](/-/media/files/data/statistics/bpm6/bptt/bptt-third-meeting-presentaion-april-13-2021.pdf.md)
- [Structured JSON version](/-/media/files/data/statistics/bpm6/bptt/bptt-third-meeting-presentaion-april-13-2021.pdf.json)

---

### Summary of BOPCOM meeting discussions (February 22–25, 2021)
- Nine Guidance Notes (GNs) and one paper were presented for discussion.
- Eight GNs were approved: BPTT (1), CATT (1), DITT (5), and FITT (1).
  - 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).
  - GN F.10 The treatment of Cash Collateral: FITT to propose a way forward based on the guidance from the Committee and the AEG.
- A paper on Sustainable Finance: Developing Guidance for Data to Address Climate Change was presented to seek Committee inputs on the way forward.
- Summaries and papers presented to the Committee were posted on the IMF BOPCOM website: Thirty-Fifth Meeting.

### BPTT Guidance Notes under preparation and outcomes
- BPTT GN B.9: Treatment of External Assets and Related Income Declared Under Tax Amnesty in External Sector Statistics
  - All Committee members supported the need for additional guidance on recording tax-amnesty-related transactions on an accrual basis.
  - An analytical box providing a brief scope of the issue will be included in BPM7, and detailed practical guidance with examples in the BPM7 CG.
  - BPM7 CG to present different possibilities of recording so countries can choose an appropriate method considering availability of resources and data, and impact on balance of payments.
  - Proposals should be checked with GFS compilers in BPTT and the AEG to ensure consistency with national accounts and government finance statistics.
  - Final version of the GN (stating the agreed proposals that should go into BPM7 and removing the questions to the Committee) to be circulated to the Committee (via written procedure) for final approval and subsequent posting on the BPM6Update website.

- BPTT GN B.7: Arrears in IIP
  - BPTT review completed. Will be posted for public consultation around April 25.

- Other BPTT GN status highlights (dates preserved)
  - B.1 Nationality concept — End-August 2021.
  - B.2 Standardized definition of net international reserves/revisit reserves-related liabilities definition* — Mid-May 2021**.
  - B.3 Treatment of centralized currency unions in macroeconomic statistics* — Mid-May 2021**.
  - B.4 Reconciliation between flows and stocks — Approved by the Committee in October 2020.
  - B.6 Sustainable finance — End-August 2021 (stocktaking presented in Feb 2021 Committee meeting).
  - B.8 Recording citizenship by investment programs — April 30, 2021.
  - B.9 Treatment of external assets and related income declared under tax amnesty in external sector statistics — Approved by the Committee in February 2021 meeting. Sent for the AEG/GFS members’ review.
  - B.10 Auxiliary reconciliation tables — End-August 2021.
  - B.12 Treatment of equity in international organizations that is in the form of unlisted shares or nonnegotiable equity* — April 30, 2021.
  - Notes on priority and process:
    - Items marked with * were presented to the Committee via written procedure.
    - Items marked with **: These GNs have significant importance for IMF’s surveillance and are circulated for review by IMF departments prior to sending for BPTT review.
  - B.5 International account supporting the analysis of welfare — OECD proposed this topic earlier—suggested to delete.
  - B.11 Other economic flows on insurance and pension reserves — ABS proposed earlier—suggested to drop.

### Specific GN outcomes from other Task Teams as reviewed by the Committee
- CATT GN C.8: Recording of Fines and Penalties
  - Committee agreed with the proposed definition: fines and penalties transactions are punitive in nature, distinguished from payments for compensation of damages.
  - Majority agreed fines and penalties should be recorded in statistics when all court appeals are exhausted.
  - National accounts community should be consulted because recording them in primary income would impact GDP and GNI; further exploration of effects on other macroeconomic accounts is needed.
  - CATT to revise the GN and consult with AEG to ensure consistency with national accounts; updated GN (stating agreed proposals) to be recirculated for final approval via written procedure.

- DITT GNs
  - D.1 Greenfield Investment and Extension of Capital
    - Committee supported a clear definition of GI and extension of capacity to be included in BPM7.
    - Testing proposed approaches before inclusion in BPM7 (DITT and WGIIS collaboration).
    - Majority supported the transactions approach; relevance of the capital approach was also highlighted.
    - Clarify scope of coverage (debt/equity) and recording (gross or net).
    - Updated GN to be circulated for final approval via written procedure.
  - D.3 Treatment of Collective Investment Institutions (CIIs)
    - Committee supported Alternatives A3.2 and A3.3 with slight preference for A3.2.
    - Recognized practical challenges in implementing either alternative; A3.2 is easier on practical grounds.
    - Additional clarification to be included in BPM7 CG on practical implementation, types of funds concerned, and institutional sector classification.
    - Updated GN to be recirculated for final approval via written procedure.
  - D.4 Corporate Inversions (CIs)
    - Committee supported the need for an official definition of corporate inversion for statistical purposes in BPM7.
    - Clarify borderline between CIs and other forms of corporate restructuring (changes in registered offices).
    - Suggest voluntary supplemental data collection where important; a typology of corporate actions indicating whether treated as transactions or other changes in volume (OCV) would be helpful.
    - Consult the GZTT in finalizing the GN. Updated GN to be circulated for final approval.
  - D.12 Including Intra-concern Financial Derivatives (FDs) in DI
    - Committee unanimously supported no change in current standards.
    - Add a supplementary breakdown of transactions and positions “of which between affiliated parties”, on a voluntary basis.
    - Include guidance in the BPM7 CG.
    - Undertake research into financial derivatives within company groups as they may behave differently and serve different purposes (e.g., shifting income).

- D.17 Superdividends
  - Committee supported Alternative 3: Discard the concept of superdividends for accumulated reserves from ordinary earnings for DIEs.
  - Maintain the term ‘superdividends’ in BPM7.
  - Consult the AEG to ensure consistency with national accounts.
  - Consider outcomes from discussions on GN F.2 and D.16 before final decision.

- FITT GNs
  - F.3 Reverse Transactions
    - Committee supported proposed recommendations on the six issues presented in the GN.
    - FITT to finalize the GN after AEG approval for posting on the BPM6Update website.
    - Detailed practical guidance on all aspects of reverse transactions to be included in BPM7 CG.
  - F.10 Treatment of Cash Collateral
    - Mixed views; recognized as a borderline case.
    - Some members supported option 3 (treat cash collateral as deposits) with no exceptions for certain institutional units.
    - Other members favored option 2 (treat cash collateral as loans); a few preferred option 1 (other accounts receivable/payable).
    - In absence of substantive agreement, the fallback solution of no change to current standards would prevail (other accounts receivable/payable).
    - FITT to propose a way forward based on guidance from the Committee and the AEG.

### Review of other Task Teams’ Guidance Notes
- Review scope and progress
  - Review of 51 GNs prepared by other TTs before public consultation — CATT (9), DITT (18), FITT (15), and GZTT (9).
  - Reviewed nine GNs between October 2020 and February 2021 Committee meetings:
    - two from CATT, five from DITT, and two from FITT.
  - Planned review for the June 2021 Committee meeting:
    - three from CATT (review of one GN C.6 already completed and GN 5.2 via written procedure).
    - five from DITT (two GNs D.11 and D.18 via written procedure to the Committee).
    - four from FITT (review of one GN F.4 already completed).
    - two from GZTT (review of both the GNs completed and GN G.4 via written procedure to the Committee).

### Timeline and next meetings in 2021
- Committee meeting dates
  - June 21–24, 2021.
  - October 26–28, 2021.
- Planned GN submissions for June meeting
  - BPTT: 5 GNs; Other TTs: 14 GNs*
  - BPTT: 3 GNs; Other TTs: 13 GNs**
  - Notes:
    - * of which, three BPTT GNs and four GNs of other TT will be presented to the Committee via written procedure (WP).
    - ** except GZTT.
- Proposed timeline for the June 2021 Committee meeting (key dates preserved)
  - Review of the BPTT GNs: Up to 2 weeks starting April 2021; End Date to provide comments: No later than April 30*.
  - Review of GNs from other TTs: 1 week starting March 2021; End Date to provide comments: No later than April 30*.
  - Posting for public consultation: 4 weeks from May 3, 2021; No later than June 3.
  - GN final version including recommendations completed and sent to BOPCOM (via BPTT) including public consultation summary: June 4, 2021; No later than June 15.
  - Committee Meeting: June 21–24, 2021.
  - * GNs listed for WP will be sent during May.

---


_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/bptt/bptt-third-meeting-presentaion-april-13-2021.pdf_