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Direct Investment

The statistical tables regarding the direct investment account of the international investment position record, on a net basis and at a specific point in time (end of year, i.e. 31 December), the stock of assets and liabilities of enterprises resident in Greece vis-à-vis non-residents when there is a direct investment relationship between them. The collection and processing of micro data is based on questionnaires directly sent to enterprises resident in Greece.

A direct investment relationship exists when a resident enterprise (direct investor) holds at least 10% of equity of a non-resident enterprise (direct investment enterprise) or, conversely, when a non-resident enterprise (direct investor) holds at least 10% of the equity of a resident enterprise (direct investment enterprise).

In particular, the direct investment account includes, in addition to the initial transaction that created the direct investment relationship (establishment, merger, acquisition), also transactions that involve the following:

a. maintenance or expansion of the direct investment relationship (capital increase, merger/acquisition);
b. termination of the direct investment relationship (disinvestment);
c. reinvestment of earnings; and
d. other financial transactions (loans, trade credits) among direct investors, direct investment enterprises and other affiliated enterprises.

The methodology of recording follows the extended directional principle according to the methodology of OECD Benchmark Definition of Foreign Direct Investment, 4th edition, while the alternative recording of direct investment according to the principle of assets/liabilities (Press release 23/03/2015: Balance of payments: Transition to the new compilation methodology - BPM6) is only valid for the presentation of international investment position as a whole. In the case where direct investment statistics are presented by country or by sector of economic activity, the directional principle must apply.