The Financial Account records, on a net basis, financial flows stemming from transactions that produce a change in the assets and liabilities of residents vis-à-vis non-residents. Such assets and liabilities are broken down into the categories of:
Net flows under the Financial Account are recorded according to the conventions regarding signs set out in the 6th edition of the IMF’s Balance of Payments Manual. A positive sign indicates an increase in Greek residents’ claims on non-residents whereas a negative sign indicates a decrease in Greek residents’ claims on non-residents. Similarly, a positive sign indicates an increase in Greek residents’ liabilities vis-à-vis non-residents and a negative sign a decrease.
Direct Investment records financial flows between resident and non-resident firms that are under a direct investment relationship. A direct investment relationship is established when a Greek firm (direct investor) holds at least 10% in the share capital of a non-resident firm (direct investment firm), or conversely, when a non-resident firm (direct investor) holds at least 10% in the share capital of a Greek firm (direct investment firm).
Direct Investment includes the establishment of a branch as well as real estate investment.
All transactions – following the initial one establishing the direct investment relationship – related to the maintenance, expansion or termination of this relationship, as well as any loans and suppliers’ credit granted between a direct investor and a direct investment firm, are recorded under Direct Investment. Finally, Direct Investment includes retained (reinvested) earnings. If the firms under a direct investment relationship are monetary financial institutions, Direct Investment records only the initial participation in the share capital (if >10%) and any further increase of this participation, but not transactions related to deposits and loans between the two firms.
Transactions are recorded under Direct Investment according to the criterion of the investment’s ‘direction’ (directional principle). Thus, all financial flows between resident direct investors and non-resident direct investment firms are recorded under Direct Investment Abroad, while all financial flows between non-resident direct investors and resident direct investment firms are recorded under Direct Investment in Greece.
The alternative recording of Direct Investment according to the principle of assets/liabilities (see special BPM6 Press Release is only valid for the presentation of the balance of payments statistics as a whole. In the case where Direct Investment statistics are presented by country or by sector of economic activity, the criterion of the directional principle must apply.
Non-residents’ Direct Investment in Greece by sector of economic activity: annual data Non-residents’ Direct Investment in Greece by country of origin: annual data
Residents’ Direct Investment Abroad by sector of economic activity: annual data
Residents’ Direct Investment Abroad by country of destination: annual data
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Portfolio Investment records financial flows related to transactions between residents and non-residents that affect their assets and liabilities vis-à-vis each other related to securities and derivatives. Securities are distinguished between equities and debt securities (bonds and money market instruments). Residents’ net investment in securities issued by non-residents are recorded under ‘Assets’ (where a positive sign indicates an increase and a negative one a decrease), whereas non-residents’ net investment in securities issued by residents are recorded under ‘Liabilities’ (where a positive sign indicates an increase and a negative one a decrease). The balance of Portfolio Investment is the difference between assets and liabilities.
Portfolio Investment assets: annual data
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The category of Other Investment records financial flows stemming from transactions between residents and non-residents related mainly to loans and deposits. Financial flows related to loans granted by residents to non-residents and their amortization, as well as residents’ deposits with non-resident monetary financial institutions are recorded under ‘Assets’. Financial flows related to loans granted by non-residents to residents and their amortization, as well as non-residents’ deposits with resident monetary financial institutions are recorded under ‘Liabilities’.
Other investment includes also liabilities (or claims) related to the issuance of banknotes, and more particularly to the difference between the legal issuance of euro banknotes (Banknote Allocation Key -allocation based on the Capital Share Mechanism ) and the amount of euro banknotes actually put into circulation.
Other Investment assets: annual data
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