Loans

Loans are bilateral credit agreements between the lender and the borrower and are non-marketable. Long-term leases are also included in loans. This type of financial leasing is a normal procedure in leasing ships and large machinery. Repurchase agreements on securities, ie repos, are recorded under this item in accordance with international accounting standards, although they are not loans from the legal point of view. Repo transactions correspond to collateralised loans in which securities originally owned by the seller are used in security for the loan. Private placement bonds also conceptually belong to the loan category.

As a result of the new statistical standards (ESA 2010), the line between deposits and loans changes so that there can no longer be loans between monetary financial institution (MFIs) - items previously recorded as loans between MFIs will now be recorded as deposits.

Loan drawdowns and redemptions are not separately compiled for Finland's BOP statistics, but loans are reported in the surveys as net changes (drawdowns less redemptions). Objects rented in financial leasing are recorded under goods trade and the rent under loans. Payments of rent are entered into redemptions and interest under interest on other investment.