| Loan guarantees have a significant impact on economic behavior, especially when issued by
government. The 1993 SNA treats guarantees as contingent liabilities and thus has no record of
the existence of the guarantee until it is activated. Further, the treatment of flows arising at the
activation is not explicit. Should obligations arising from guarantees be recognized when
guarantees are granted, particularly regarding those guarantees for which it is possible to make
reasonable estimates of expected future claims? |
