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Definition: Financial account

External debt - IMF

The financial account of the balance of payments consists of the transactions in foreign financial assets and liabilities of an economy. The foreign financial assets of an economy consist of holdings of monetary gold, IMF Special Drawing Rights, and claims on nonresidents. The foreign liabilities of an economy consist of claims of nonresidents on residents. The primary basis for classification of the financial account is functional: direct, portfolio, and other investment, financial derivatives, and reserve assets.
International Monetary Fund (IMF), "External Debt Statistics: Guide for Compilers and Users; Appendix III. Glossary of External Debt Terms", Washington D.C., 2003