Definition: Part-payments for capital goods

Category: External debt - IMF

For capital goods with long delivery periods, such as ships, the purchaser may make part-payments to the builder or exporter while the good is being produced. These part-payments should be recorded as trade credit debt of the exporter. The debt is extinguished when the purchaser takes delivery of the good. http://ec.europa.eu/eurostat/ramon/statmanuals/files/external_debt_guide_2003_EN.pdf#page=227