Definition: Note Issuance Facility

Category: SNA 1993

Underwritten Note Issuance Facilities (NIFs) provide a guarantee that a potential debtor will be able to sell short-term securities (notes) that he issues and that the bank or banks issuing the facility will take up any notes not sold in the market or will provide equivalent advances; the facility itself is contingent, and the creation of the facility gives rise to no entry in the financial account; only if the underwriting institution is requested to make funds available will it acquire an actual asset, which is recorded in the financial account. http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA_1993_EN.pdf