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PCBS & PMA: The the International investment position and External Debt statistics,First Quarter, 2019

                     The Net Stock of the International Investment Position (IIP) Increased by 4% at the End of the First Quarter 2019

                   

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the International Investment Position (IIP), and External Debt statistics for Palestine as of end of the first quarter 2019.

The primary results of the IIP (external assets – foreign liabilities) for Palestine at the end of the first quarter 2019  revealed that the net IIP amounted to USD 1,724 million, increased by 4% compared with previous quarter, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad. 

The total stocks of External Assets for Palestinian economy amounted to USD 6,841 million, the Foreign Direct Investment Abroad contributed to 5%, Portfolio Investments abroad reached 20%, while Other Foreign Investments Abroad (mainly currency and deposits) reached 66% and Reserve Assets amounted to 9%.  At sectoral level, the external investments of banks sector represented a large share of the external assets, standing at 67% of the total value of external assets for Palestinian economy.

The total stocks of Foreign Liabilities in Palestine (stocks of non-residents invested in Palestine) amounted to USD 5,117 million, the Foreign Direct Investment in Palestine contributed to 53%, Portfolio Investments in Palestine reached 15% and Other Investments in Palestine (mainly loans and deposits from abroad) amounted to 32%.  At sectoral level, the foreign investments in banks sector contributed a major value in the foreign liabilities, represented by 38% of the total value of foreign liabilities on Palestinian economy.

Stock of  external government debt amounted to about USD 1 billion at the end of the first quarter 2019

The Gross External Debt on the Palestinian economic sectors reached USD 1,680 million increased by 9.4% compared with previous quarter, the debt on government sector represented 61%, while debt on banks sector reached 34%, and debt on other sectors (nonbank financial corporations, non-financial corporations, NGOs and households sector) amounted to 2%, and the lending between affiliated companies reached 3%.

The International Investment Position (IIP) is an accounting sheet that records the investments stocks for the residents in Palestine (individuals, institutions and government) invested in the rest of the world (abroad) under the name of (assets), and compares them to the investments stocks owned by residents outside Palestine (individuals, institutions and government) invested in Palestine under the name of (liabilities).

The Balance of Payments Manual - fifth edition, issued by the International Monetary Fund in 1993, divides the assets and liabilities into direct investment (investment by 10% and more in the non-resident capital), and portfolio investment (investment less than 10% in the non-resident capital as well as investment in bonds), and other investments. It divides these other investments into stocks of trade credit, loans, currency and deposits and any other assets or liabilities), in addition to the Reserve Assets, i.e. Stocks held by the Central Banks/ Monetary Authorities to address the imbalances in the balance of payments, it is worth mentioning that the reserve assets are only included in the asset side.

The External Debt is an accounting sheet that records the debt stocks on Palestinian economic sectors due to non-residents. These include (loans from non-residents, the deposits of the non-residents deposited in the banks sector in Palestine, the Palestinian bonds purchased by non-residents, debt transactions between the non-resident enterprises and fellow enterprises in Palestine. They encompass as well any other liabilities on Palestinian economy) the data of external debt have been extracted from the liabilities side in the international investment position matrix (debt items). Preparing, classifying and publishing of the data are based on (External Debt Statistics Manual) issued by IMF in 2003, this manual is harmonized with the fifth edition of Balance of Payments Manual. 

For further details please contact:

 

Palestinian Central Bureau of Statistics          

 Or

Palestine Monetary Authority

P.O. Box 1647, Ramallah - Palestine.

 

P.O. Box 452, Ramallah - Palestine.

 

 

 

Tel:   (972/970) 2 2982700

 

Tel:   (972/970) 2 2415250

Email:     diwan@pcbs.gov.ps

 

Email:     info@pma.ps

Website:  http://www.pcbs.gov.ps

 

Website:  http://www. pma.ps

 

  Issued on : 19/6/2019

 

 

 

Table 1: International Investment Position (IIP) Stock by Economic Sectors for Palestine, at the end of the First Quarter, 2019

 

Value in million USD

TOTAL

Other Sectors

Banks Sector

Government Sector

Monetary Authorities (PMA)

Investments Stocks by

Type of Investment

House- Holds Sector

Nonbank Financial Corporations, Non-Financial Corporations, and NGOs Sector

1,724

-966

-141

2,637

-714

908

International Investment Position (net)*

6,841

37

990

4,589

317

908

Total External Assets

351

11

340

0

0

0

Foreign Direct Investment Abroad

1,389

0

449

886

0

54

Portfolio Investments Abroad

4,518

26

201

3,703

317

271

Other Investments Abroad

3,948

26

37

3,614

0

271

     Of which: currency and deposits**

583

0

0

0

0

583

Reserve Assets

5,117

1,003

1,131

1,952

1,031

0

Total Foreign Liabilities

2,739

1,003

703

1,033

0

0

Foreign Direct Investment in Palestine

742

0

386

356

0

0

Foreign Portfolio Investments in Palestine

1,636

0

42

563

1,031

0

Foreign Other Investments in Palestine:

1,062

0

31

0

1,031

0

     Of which: loans from abroad

563

0

0

563

0

0

    Of which: currency and deposits***

 

Notes:

- The data in the above table are close to the nearest integer.

- The data does not include the value of land owned by non-residents.

* International investment position (net): equals total external assets minus total foreign liabilities.

** Currency and deposits: Include the residents deposits in banks abroad, in addition to foreign exchange in Palestinian economy.

*** Currency and deposits: Include the deposits of non-residents deposited in resident banks.

 

 

Table 2: Gross External Debt Position on Palestine, at the End of the

Fourth and First Quarters, 2019

 

Value in million USD  

Stock at the end of the First Quarter 2019

Stock at the end of the    Fourth Quarter 2018

Economic Sector

1,031

1,032

General Government

123

117

Short-term

908

915

Long-term

0

0

Monetary Authorities

0

0

Short-term

0

0

Long-term

563

417

Banks

276

196

Short-term

287

221

Long-term

42

42

Other Sectors

4

4

Short-term

38

38

Long-term

44

44

Direct Investment: lending between affiliated companies

41

41

Debt liabilities to affiliated enterprises

3

3

Debt liabilities to direct investors

1,680

1,535

Gross External Debt Position