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Financial Derivatives Notation According to Maastricht Criteria after the ESA 2010 Implementation
[Vykazování derivátů z hlediska plnění maastrichtských kritérií po přijetí ESA 2010]

Author

Listed:
  • Petr Pavelek
  • Miroslav Titze

Abstract

Shifting to the ESA2010 is going to introduce new statistical treatment with interest under swaps and forward rates agreements (FRA) which will be further not part of the Excessive deficit procedure. The objective of the article is discuss financial derivatives notations from statistical and debt management point of view after the ESA2010 implementation. The paper also discusses potential impact on the recorded fiscal deficit and debt management strategy after implementation. The structure of the article is following: the first part reveals needs for the different treatment of financial derivatives in national accounts and Excessive deficit procedure, the second part describes exclusion of the manipulative uses of financial derivatives and the last part analyzes potential changes due to exclusion of interest under swaps and FRA from deficit in EU28. Simplification in the national accounts has to be compensated by needs for another notation to monitor real fiscal position. Modification of the deficit notation will be asymmetric between EU28 countries and creates conflicts among the strategic goals attained by financial derivatives and Excessive deficit procedure.

Suggested Citation

  • Petr Pavelek & Miroslav Titze, 2014. "Financial Derivatives Notation According to Maastricht Criteria after the ESA 2010 Implementation [Vykazování derivátů z hlediska plnění maastrichtských kritérií po přijetí ESA 2010]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(3), pages 75-90.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:3:id:410
    DOI: 10.18267/j.cfuc.410
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    References listed on IDEAS

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    1. Graeme Wheeler, 2004. "Sound Practice in Government Debt Management," World Bank Publications - Books, The World Bank Group, number 15017, December.
    2. Gustavo Piga, 2001. "Do Governments Use Financial Derivatives Appropriately? Evidence from Sovereign Borrowers in Developed Economies," International Finance, Wiley Blackwell, vol. 4(2), pages 189-219.
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    More about this item

    Keywords

    ESA 2010; Financial derivatives; Excessive deficit procedure; Finanční deriváty; Procedura nadměrného schodku;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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