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2.174. Cash flows from investments in financial assets for liquidity management purposes refers to cash receipts from liquidation or repayment of investments in financial assets for liquidity management purposes less cash payments for such investments. Investment for liquidity management purposes means making funds available to others with no policy intent and with the aim of earning a commercial rate of return.

Interest repayments in cash are classified as cash flows from operating activities

2.175. Cash flows from financing activities refers to cash receipts from borrowing by public sector units less cash repayments or redemption of such borrowing in the past. Borrowing includes the receipt of advances from other government units and receipt of deposits. Also included are borrowing from the International Bank for Reconstruction and Development, borrowing under credit arrangements with foreign governments and authorities, and the issue of stocks and bonds abroad. …

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