Balance of payments: JANUARY 2009
20/03/2009 - Press Releases
Current account balance
In January 2009, the current account balance showed a
deficit of €3,368 million, down by €566 million year-on-year. This development
reflects a contraction of the trade deficit. By contrast, the surplus of the
services balance declined and the deficits of the income account and the current
transfers balance grew.
The €972 million decrease in the trade deficit reflects
mainly a €603 million drop in the trade deficit excluding oil and ships and,
secondarily, a €361 million fall in the net oil bill, while net payments for
purchases of ships remained unchanged. Underlying the decline in the trade
deficit excluding oil and ships was the fact that the import bill fell by €807
million or 24%, i.e. more than the corresponding export receipts (which
decreased by €204 million or 18%).
The €248 million reduction in the surplus of the services
balance is mainly attributable to a narrowing of the surplus of the transport
balance and, secondarily, a rise in net payments for other services. The
widening of the income account deficit mainly reflects higher net interest,
dividend and profit payments. Finally, the growth of the deficit of the current
transfers balance is accounted for by lower net transfers to the "other" sectors
(excluding general government), while net EU transfers to general government
remained virtually unchanged. (It should be recalled that current transfers from
the EU mainly include receipts from the Guarantee Section of the European
Agricultural Guidance and Guarantee Fund (EAGGF) in the context of the Common
Agricultural Policy, as well as receipts from the European Social Fund, while
current transfers to the EU include Greece's contributions (payments) to the
Community Budget.)
Capital transfers balance
In January 2009, the capital transfers balance showed
a surplus of €68.5 million, i.e. considerably lower year-on-year. (Capital
transfers mainly include receipts from the Structural Funds - except for the
European Social Fund - and the Cohesion Fund under the Community Support
Framework.)
Combined current account and capital transfers balance
The combined current account and capital transfers balance
showed a deficit of €3,300 million in January 2009, down by €326 million
year-on-year.
Financial account balance
In January 2009, direct investment showed a net inflow
of €94 million. In particular, under non-residents' investment in Greece, a net
inflow of €109 million was recorded. The most important transactions concerned a
€75 million inflow from the Austrian company "Hofer KG" for its participation in
the capital increase of "Aldi Hellas Supermarket Holding Ltd." and a €30 million
outflow (disinvestment) concerning the sale by "Wind PPC Holding" to "Wind
Hellas" of the former's stake in "Tellas S.A." (this was the second out of six
instalments - the first one had been paid in October 2008). Residents'
investment abroad recorded a net outflow of €15 million, with no remarkable
transactions.
During the same period, a net inflow of €2,141 million was
observed under portfolio investment, mainly reflecting inflows of €2,028 million
as resident institutional investors' holdings of foreign bonds and Treasury
bills fell, as well as inflows of €523 million for non-residents' purchases of
Greek government bonds and Treasury bills, which, however, were considerably
lower than in January 2008 (€6,600 million). These developments were partly
offset by a small outflow of €384 million for residents' purchases of foreign
shares.
"Other" investment recorded a net inflow of €1,258 million,
mainly because of a €2,079 million increase in non-residents' deposit and repo
holdings in Greece, which exceeded by far an outflow of €500 million for
repayment of general government loans.
At end-January 2009, Greece's reserve assets reached €2.5
billion. It should be recalled that, since Greece joined the euro area in
January 2001, reserve assets, as defined by the European Central Bank, include
only monetary gold, the "reserve position" with the IMF, "Special Drawing Rights",
and Bank of Greece claims in foreign currency on residents of non-euro area
countries. Conversely, reserve assets do not include claims in euro on residents
of non-euro area countries, claims in foreign currency and in euro on residents
of euro area countries, and the Bank of Greece participation in the capital and
the reserve assets of the ECB.
Note: Balance of payments data for February 2009 will
be released on 22 April 2009.