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Definition: Loans to public units

National accounts

When classifying payments to public units as loans it is important to examine the likelihood of repayment and the commercial arrangements for repayment and payment of interest.  In some cases where repayment is uncertain it might be more appropriate to record the loans as capital transfers, or where the interest payments are not fixed, to record as the acquisition of other equity.
Eurostat, "ESA 95 manual on government deficit and debt, 2002 Edition", Office for Official Publications of the European Communities, Luxembourg, 2002, Chapter II.1