Definition: Intercompany debt transactions

Category: Balance of payments

Other direct investment capital (or intercompany debt transactions) covers the borrowing and lending of funds – including debt securities, suppliers’ credits and nonparticipating preferred shares (which are treated as debt securities), between direct investors and subsidiaries, branches, and associates. Debt claims on the direct investor by the direct investment enterprise are also recorded as direct investment capital. http://eur-lex.europa.eu/LexUriServ/site/en/oj/2005/l_035/l_03520050208en00230055.pdf
Source:
European Union, Regulation (EC) No 184/2005 of the European Parliament and of the Council of 12 January 2005 on Community statistics concerning balance of payments, international trade in services and foreign direct investment (Official Journal of the European Union No L 35, 8.2.2005, p. 23 – 55)
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