Methodological Commentary to the Payment Schedule of External Debt of the Russian Federation
The conceptual framework of external debt statistics of the Russian Federation is the “External Debt Statistics: Guide for Compilers and Users” (IMF, 2013) as well as the sixth edition of “Balance of Payments and International Investment Position Manual” (BPM6) (IMF, 2009)1.
The main purpose of compilation of payment schedule of external debt and interest payments is to assess the liquidity risk for the country and different sectors of economy. The payment schedule shows the future allocation of the debt burden on a time scale, which is of interest to investors when determining the solvency and creditworthiness of the government, banks and the corporate sector in terms of allocation of the debt burden and determining the peak periods for which the maximum volume of external debt repayment falls.
Based on the accumulated external debt liabilities of the Russian Federation as of the reporting date, the Bank of Russia compiles a payment schedule for the principal debt and a payment schedule for forthcoming interest payments.
Payment schedule of external debt is compiled separately for institutional sectors: general government (distinguishing federal and local government), central bank, banks and other sectors. While compiling a payment schedule for the principal debt, depending on the importance of a certain category of debt for each of the institutional sectors, the future payments on different financial instruments, such as loans and deposits, securities, etc., are identified. For other sectors, the aggregate indicator of debt repayment within the framework of direct investment relationship is separately reflected as part of external debt. Due to the inability to distinguish it into a separate item, the payment schedule of the banking sector’s liabilities within the framework of direct investment relationship is recorded in the corresponding debt instruments.
The interest payment schedule of debt liabilities to non-residents is calculated by sector, but without detailing by financial instruments.
The time scale is divided by periods: up to one year is presented by months, from one year to two years — by quarters, and over two years. Certain types of foreign liabilities are not presented in the time scale. These include:
— liabilities on financial instruments payable on demand are recorded in the column “Immediate” (for example, for correspondent accounts and some types of bank deposits);
— liabilities on financial instruments without maturity are included in the “Debt without schedule”2 column (for example, for preferred shares, allocated special drawing rights (SDR), cash currency);
— liabilities on financial instruments for which the maturity date is unknown are reflected in the “The schedule is not available” column (for example, for bills or promissory notes that have no maturity, letters of credit).
The payment schedule of external debt and its interest payments is published quarterly as of the reporting date and remains current until the next publication of the payment schedule. At the same time, the updated payment schedule of external debt and interest payments replaces the payment schedule from the previous publication. The payment schedule is updated due to a number of factors: repayments that have occurred in the period since the previous publication, debt reorganization, new borrowings, debt prepayment, changes in the exchange rate at the reporting date upon revaluation of payments, and a shift in the forecast time scale.
Features of compiling the payment schedule of external debt of the Russian Federation for certain sectors (principal debt)
| Name of category of financial instruments | Explanation (components of category of financial instruments, sources of information for compiling the payment schedule, methodology) |
|---|---|
| General Government | |
| Loans | Payments on loans, including loans from international financial organizations, as well as liabilities under bilateral intergovernmental agreements, are recorded on the time scale by maturity based on data on loan terms as well as agreements concluded by the Russian Federation with international financial organizations and individual countries. |
| Debt securities | Payments on federal government bonds (OFZ), Eurobonds of the Russian Federation, debt securities of local governments of the Russian Federation are distributed by maturity based on issue prospectuses, data from the Ministry of Finance of the Russian Federation on the characteristics of federal government bonds and Eurobonds of the Russian Federation, as well as on the basis of reporting forms 0409711, 0420415, 0409405. |
| Other | Debt repayment on contributions of the Ministry of Finance of the Russian Federation to the International Development Association, debt on the lease of facilities located in other countries are recorded on the time scale by maturity according to the data of the state development corporation VEB.RF. |
| Central bank | |
| Loans | Debt repayment on repo transactions with non-residents, calculated on the basis of the Bank of Russia’s data, is accounted in payment schedule in accordance with the closing dates of repo transactions. |
| Currency | Cash Russian rubles held by non-residents, calculated according to the Bank of Russia’s estimates, is included in the “Debt without schedule” column. |
| Other | Debt on distributed SDRs, calculated based on the Bank of Russia’s data, is included in the “Debt without schedule” column. |
| Banks | |
| Loans and deposits (except for demand deposits) | Debt repayment on interbank loans and deposits raised from non-residents is accounted in payment schedule on the time scale by maturity based on data of reporting form 0409501. Debt repayment on loans extended to banks by other non-residents is accounted in payment schedule on the time scale according to maturity based on data of reporting form 0409125. Debt repayment on loans and deposits raised as a result of Eurobonds placement by non-residents on the international capital market in favor of Russian banks is recorded on the time scale according to maturity using data from information and analytical systems CBonds, Bloomberg, Refinitiv (Thomson Reuters). Debt repayment of the state development corporation VEB.RF is accounted in payment schedule according to maturity based on information received under the agreement between the Bank of Russia and the state development corporation VEB.RF on the data provision. Indebtedness under letters of credit is included in the column “The schedule is not available” |
| Current accounts and demand deposits | Debt repayment on interbank demand deposits, current accounts, loans and deposits for up to 7 days, raised from non-resident banks, is reflected in the “Immediate” column based on data of reporting form 0409501. Debt repayment on demand deposits, current accounts of non-resident legal entities and individuals, loans and deposits for a period of up to 7 days, attracted from non-resident legal entities and individuals, is included in the “Immediate” column based on data of reporting form 0409101. |
| Debt securities | Debt repayment on bills and promissory notes, bonds, preferred shares classified as debt instruments, bankers’ acceptances, certificates of deposit and savings certificates is accounted in payment schedule by maturity based on data of reporting forms 0409401, 0409405, 0409711, 0420415. Indebtedness on bills and promissory notes that have no maturity is included in the “The schedule is not available” column. Debt on preferred shares is reflected in the “Debt without schedule” column. |
| Other | Debt repayment on declared but not paid dividends is accounted in payment schedule in the first and second months of the period following the date on which the payment schedule is compiled, based on the actual data of reporting form 0409401. Indebtedness on other liabilities is reflected in the “The schedule is not available” column. |
| Other sectors | |
| Debt liabilities to direct investors and to direct investment enterprises | Debt repayment on loans is recorded on the time scale by maturity based on data of reporting form 0406006. Debt repayment on declared but not paid dividends in favor of direct investors is accounted in payment schedule in the first and second months of the period following the date on which payment schedule is compiled, based on the actual data of reporting form 0409405. Debt repayment on bills and promissory notes is accounted in payment schedule on the time scale by maturity based on data of reporting forms 0409711, 0420415, 0409405. Indebtedness on other liabilities is included in the “The schedule is not available” column. Arrears on loans of other sectors are included in the column “Immediate”. |
| Loans and deposits | Debt repayment on loans is recorded on the time scale according to maturity based on data of reporting form 0406006. Debt repayment on repo transactions, formed on the basis of actual data of reporting form 0409405, is accounted in payment schedule on the time scale in the first quarter of the period following the date on which the payment schedule is compiled. Indebtedness on other liabilities, including deposits, is included in the “The schedule is not available” column. Arrears on loans are reflected in the column “Immediate”. |
| Debt securities | Debt repayment on bonds is recorded on the time scale according to maturity based on issue prospectuses, information from the Moscow Stock Exchange, as well as data of reporting forms 0409711, 0420415. Debt repayment in terms of bills, promissory notes and mortgages — according to data of reporting forms 0409711, 0409415, 0409405. Arrears on debt securities is included in the “Immediate” column. Indebtedness on debt securities for which the maturity date is unknown is accounted in payment schedule in the “The schedule is not available” column. Debt on preferred shares is reflected in the “Debt without schedule” column. |
| Trade credits | The debt is included in the “Debt without schedule” column. |
| Financial leases | Debt repayment is accounted in payment schedule on the time scale by maturity based on retrospective data on the amount of debt raised and repaid for goods imported under finance lease terms. |
| Other | Debt repayment on declared but not paid dividends on ordinary shares in favor of portfolio investors is accounted in payment schedule in the first and second months of the period following the date on which the payment schedule is compiled, based on actual data of reporting form 0409405. Indebtedness of non-bank credit institutions and other payables are included in the “The schedule is not available” column. Indebtedness on insurance contracts is reflected in the “Debt without schedule” column. |
Reporting forms used:
1. Reporting form 0406006 “Bank control records on the Credit Contract”
2. Reporting form 0409101 “The Turnover Balance Sheet of a Credit Institution”
3. Reporting form 0409125 “Information on Assets and Liabilities by Maturity”
4. Reporting form 0409401 “Report of Authorized Credit Institution on Cross-boarder Transactions”
5. Reporting form 0409405 “Information on Settlements between Residents and Non-residents for Transactions with Securities, Shares, Participation and Contributions of Property”
6. Reporting form 0409501 “Information on Interbank Loans and Deposits”
7. Reporting form 0409711 “Report on Securities Data”
8. Reporting form 0420415 “Report on Professional Securities Market Participants Data”
1 Information on the general concepts of external debt statistics, the structure and characteristics of external debt, as well as the principles of accounting and data coverage can be found in Methodological Commentary to External Debt Statistics of the Russian Federation.
2 “Debt without schedule” and “The schedule is not available” columns are for analytical purposes and are not discussed in “External Debt Statistics: Guide for Compilers and Users” (IMF, 2013).