Definition: Note Issuance Facility

SNA 1993

Underwritten Note Issuance Facilities (NIFs) provide a guarantee that a potential debtor will be able to sell short-term securities (notes) that he issues and that the bank or banks issuing the facility will take up any notes not sold in the market or will provide equivalent advances; the facility itself is contingent, and the creation of the facility gives rise to no entry in the financial account; only if the underwriting institution is requested to make funds available will it acquire an actual asset, which is recorded in the financial account.
Source:
United Nations, "System of National Accounts (SNA) 1993", § 11.25, United Nations, New York, 1993
Created:
Updated:

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