Definition: Part-payments for capital goods

External debt - IMF

For capital goods with long delivery periods, such as ships, the purchaser may make part-payments to the builder or exporter while the good is being produced. These part-payments should be recorded as trade credit debt of the exporter. The debt is extinguished when the purchaser takes delivery of the good.
International Monetary Fund (IMF), "External Debt Statistics: Guide for Compilers and Users; Appendix I. Specific Financial Instruments and Transactions: Classifications", Washington D.C., 2003

Search box