Explicit contingent liabilities (ETF 721)

A1B.18.

Explicit contingent liabilities (ETF 721) occur when there is a contractual agreement which explicitly states that one party (in this case, the government) agrees to assume the liability of another party if certain conditions arise. The most common form of explicit contingent liabilities are one-off guarantees in the form of loans and other debt instrument guarantees that are referred to as publicly guaranteed debt, and other types of one-off guarantees. Explicit contingent liabilities are not recorded in GFS unless the conditions associated with these are met. Further information on explicit contingent liabilities can be found in Chapter 13 Part C of this manual.

A1B.19.

In the ABS GFS, explicit contingent liabilities (ETF 721) are further classified as:

• Loan and other debt instrument guarantees (ETF 7211);
• Other one-off guarantees (ETF 7212);
• Legal claims (ETF 7213);
• Indemnities (ETF 7214);
• Uncalled share capital (ETF 7215); and
• Explicit contingent liabilities not elsewhere classified (ETF 7219).

A1B.20.

Loan and other debt instrument guarantees (ETF 7211) consist of the value of loans and other debt instruments that are guaranteed under a contractual agreement which explicitly states that the government will assume these liabilities on behalf of another party if certain conditions arise.

A1B.21.

Other one-off guarantees (ETF 7212) consist of the value of other one-off guarantees that are under a contractual agreement which explicitly states that a public sector unit will assume liabilities on behalf of another party if certain conditions arise.

A1B.22.

Legal claims (ETF 7213) consist of the value of legal claims that are guaranteed under a contractual agreement which explicitly states that a public sector unit will assume liabilities on behalf of another party if certain conditions arise.

A1B.23.

Indemnities (ETF 7214) consist of the value of indemnities that are guaranteed under a contractual agreement which explicitly states that a public sector unit will assume liabilities on behalf of another party if certain conditions arise.

A1B.24.

Uncalled share capital (ETF 7215) consists of the value of uncalled share capital that is guaranteed under a contractual agreement which explicitly states that a public sector unit will assume liabilities on behalf of another party if certain conditions arise.

A1B.25.

Explicit contingent liabilities not elsewhere classified (ETF 7219) consist of the value of other explicit contingent liabilities that are guaranteed under a contractual agreement which explicitly states that a public sector unit will assume liabilities on behalf of another party if certain conditions arise.