Palestine – The net stock of the international investment …

(MENAFN-Palestine News Network)

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Bethlehem / PNN /

The Palestinian Central Bureau of Statistics (PCBS) and the Palestinian Monetary Authority (PMA) announced preliminary results of the international investment position (IIP) and external debt statistics of Palestine at the end of the third quarter of 2021.

Main IIP results (external assets – external liabilities) for Palestine at the end of the third quarter of 2021 revealed that the net IIP stood at $ 3,607 million, up 8% from the quarter precedent, which means that the investments of the economy outside Palestine outweigh the investments in Palestine from abroad.

67% of the total external assets of the Palestinian economy are currencies and deposits

The total stocks of foreign assets for the Palestinian economy amounted to $ 9,436 million, foreign direct investment abroad contributed 4%, portfolio investment abroad reached 16%, while that other foreign investment abroad (mainly currencies and deposits) reached 72% and reserve assets amounted to 8%. At the sectoral level, the foreign investments of the banking sector represented a significant part of the external assets (balances abroad, safes and portfolio investments) amounting to 71% of the total value of the external assets of the Palestinian economy. .

50% of total foreign commitments to the Palestinian economy are foreign direct investment
Total stocks of foreign liabilities in Palestine (stocks of non-residents invested in Palestine) amounted to US $ 5,829 million, foreign direct investment in Palestine was 50%, portfolio investment in Palestine was 14%, and other investment in Palestine (mainly loans and deposits from abroad) amounted to 36%. At the sectoral level, foreign investments in the banking sector contributed to a major value of external liabilities, represented by 36% of the total value of external liabilities to the Palestinian economy.

An increase in the stock of external public debt of 0.4%, reaching around 1.3 billion USD at the end of the third quarter of 2021

Gross external debt on Palestinian economic sectors reached US $ 2,131 million, up 4% from the previous quarter. Debt to the public sector represented 62%, while debt to the banking sector (deposits of non-residents in banks operating in Palestine) reached 35%, and debt to other sectors (non-bank financial corporations, non-banking corporations). financial, NGO and household sector) was 2% and loans between affiliates at 1%.

The international investment position (IIP) is an accounting sheet that records the investment stocks of residents in Palestine (individuals, institutions and government) invested in the rest of the world (abroad) under the name of (assets), and compares them to investment stocks held by residents outside Palestine (individuals, institutions and government) invested in Palestine under the name of (liabilities).

The Balance of Payments Manual – Fifth Edition, published by the International Monetary Fund in 1993, divides assets and liabilities into direct investment (investment of 10% and more in the capital of non-residents) and portfolio investment ( investment of less than 10% in the capital of non-residents as well as investment in bonds) and other investments. It divides these other investments into stocks of trade credit, loans, currencies and deposits, and any other assets or liabilities), in addition to reserve assets, i.e. stocks held by central banks / monetary authorities for Address balance of payments imbalances, it should be mentioned that reserve assets are only included in assets.

External debt is an accounting sheet that records the stocks of debt on Palestinian economic sectors owed to non-residents. These include (loans from non-residents, deposits from non-residents deposited with banks operating in Palestine, Palestinian bonds purchased by non-residents (if any), debt transactions between non-residents residents and sister companies in Palestine.

They thus include all other liabilities on the Palestinian economy) External debt data has been extracted from the passive side of the international investment position matrix (debt items). The preparation, classification and publication of data are based on the (External Debt Statistics Manual) published by the IMF in 2003, this manual is harmonized with the fifth edition of the Balance of Payments Manual.

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Ann J. Cox