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PRIVATE FLOWS

Statistics Directorate    
Definition:
Consist of flows at market terms financed out of private sector resources (i.e. changes in holdings of private long term assets held by residents of the reporting country) and private grants (i.e. grants by non government organisations, net of subsidies received from the official sector).

Context:
In presentations focusing on the receipts of recipient countries, flows at market terms are shown as follows:

(a) Direct investment: Investment made to acquire or add to a lasting interest in an enterprise in a country on the Development Assistance Committee (DAC) List of Aid Recipients. In practice it is recorded as the change in the net worth of a subsidiary in a recipient country to the parent company, as shown in the books of the latter.

(b) International Bank Lending: Net lending to countries on the List of Aid Recipients by commercial banks in the Bank of International Settlements reporting area, i.e. most OECD countries and most offshore financial centres, (Bahamas, Bahrain, Cayman Islands, Hong Kong, Netherlands, Antilles and Singapore), net of lending to banks in the same offshore financial centres. Loans from central monetary authorities are excluded. Guaranteed bank Loans and bonds are included under other private or bond lending in these presentations.

(c) Bond Lending: Net completed international bonds issued by countries on the DAC List of Aid Recipients.

(d) Other private: Mainly reported holdings of equities issued by aid recipient countries, and bank Loans which in this context are included with guaranteed export credits.

Source Publication:
Glossary of Key Terms and Concepts. From the "Development Co-operation Report: Efforts and Policies of Members of the Development Assistance Committee".

Hyperlink:
http://www.oecd.org/dac/dacglossaryofkeytermsandconcepts.htm#Private_Flows

Created on Friday, May 24, 2002

Last updated on Wednesday, June 12, 2013