PCBS and PMA Results Announcement International Investment Position & External Debt – Second Quarter, 2018

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA)announced the preliminary results of theInternational Investment Position(IIP), and External Debt statistics for Palestine as of end of the second quarter 2018.

The primary results of the IIP (external assets – foreign liabilities) for Palestine at the end of second quarter 2018 revealed that the net IIP amounted to about USD 1,492million, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad.  The resident cash deposits in foreign banks and foreign exchange in the Palestinian economy accounted for the bulk of the external assets, constituting 59.7% of the total value of external assets.

The total stocks of External Assets for Palestinian economy amounted to USD 6,413 million, the Foreign Direct Investment Abroad contributed to 5.4%, Portfolio Investments abroad reached 21.9%, while Other Foreign Investments Abroad (mainly currency and deposits) reached 64.5% and Reserve Assets amounted to 8.2%, at sectoral level, the external investments of banks sector represented a large share of the external assets, standing at 68.7% 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 4,921 million, the Foreign Direct Investment in Palestine contributed to 55.0%, Portfolio Investments in Palestine reached 13.8% and Other Investments in Palestine (mainly loans and deposits from abroad) amounted to 31.2%, at sectoral level, the foreign investments in banks sector contributed a major value in the foreign liabilities, represented by 35.5% of the total value of foreign liabilities on Palestinian economy.

The Gross External Debt on the Palestinian economic sectors reached USD 1,579million, the debt on government sector represented 65.1%, while debt on banks sector reached 29.5%, and debt on other sectors (nonbank financial corporations, non-financial corporations, NGOs and households sector) amounted to 2.6%, and the lending between affiliated companiesreached 2.8%.

The International Investment Position(IIP) is an accounting sheet that records the investments stocks for the residents inPalestine (individuals, institutions and government)investedin the rest of the world(abroad) under the name of(assets),and compares them to the investments stocksowned byresidentsoutside Palestine (individuals, institutions and government)investedin Palestineunderthe 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 intostocks of trade credit, loans, currency and depositsand anyother assets orliabilities), in addition to theReserve Assets, i.e.Stocksheld bythe Central Banks/ Monetary Authoritiesto address theimbalancesin the balance ofpayments, 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.  

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Table 1: International Investment Position (IIP) Stock by Economic Sectors for Palestine, at the end of the Second Quarter, 2018

   Value in million USD

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 

First Quarter, 2018 and Second Quarter, 2018

            Value in million USD