General methodological compilation principles and data sources of the Balance
of Payments and International Investment Position of the Republic of Lithuania
1. INTRODUCTION
Since the beginning of 1995, the Bank of Lithuania (BoL) has
prepared the national balance of payments (BOP) statistics, has coordinated all
work related to the collection of the information necessary for the compilation
of these statistics and has systematically monitored this work. The BOP,
international investment position (IIP) are compiled according to the
international standards recommended by the fifth edition of the IMF Balance of
Payments Manual (BPM5), methodological requirements of Eurostat’s (BOP Vademecum,
2007, December), Guideline ECB/2004/15 (partially amended on 31th of May, 2007)
on the statistical reporting requirements of the European Central Bank in the
field of balance of payments and international investment position statistics,
and the international reserves template, Regulation (EC) No 184/2005 of the
European Parliament and of the Council of 12 January 2005 on Community
statistics concerning balance of payments, international trade in services and
foreign direct investment.
2. LEGISLATIVE PROVISION
The legal responsibility is set out in Article 8 of the
Law No IX-569 on the Bank of Lithuania, as amended on 25 April 2006, which
lists the functions of BoL. Specifically, Article 8, paragraph 9, states that
BoL shall collect monetary, banking and balance of payments statistics, as well
as data on Lithuanian financial and related statistics, implement standards on
the collection, reporting and dissemination of the said statistics and compile
the balance of payments of the Republic of Lithuania. Furthermore, Article 54
states that bodies of state authority and administration, enterprises,
institutions and organizations of the Republic of Lithuania must present to BoL
all information required for the performance of its functions.
The Republic of Lithuania’s Law No VIII-1511 of 23
December 1999 on the amendment of the Law on Statistics, in particular the
chapter entitled “Management of statistics” (Article 6, which deals with the
agencies managing official statistics), stipulates that official statistics in
the Republic of Lithuania are to be managed by the following agencies:
government ministries;
other state and local self-government institutions;
agencies; and
BoL, if this is provided for in the work programme for official statistics.
The other legislative provisions those are relevant for the
compilation of the Lithuanian BOP and IIP statistics are as follows:
Resolution No 106 of 23 October 2003 of the Board of the Bank
of Lithuania on the approval of the procedure for submitting to BoL the
reporting statistical data necessary to compile the BOP and IIP. This resolution
states the kind of statistical data to be provided by the various ministries,
public institutions and economic units and the required frequency and timeliness.
This resolution also states that BOP and IIP data have to be provided to the
ECB, Eurostat and the IMF according to the required timetable, which is
published on BoL’s website and in its relevant publications.
Resolution No 125 of 11 December 2003 of the Board of the
Bank of Lithuania on the approval of the statistical statements used for the
compilation of the BOP and IIP BoL collects these statements directly from
commercial banks and other entities.
Resolution No 77 of 27 May 1999 (amendments No 101 of 14 June
2001, No 52 of 3 May 2007) on the registration with BoL of foreign loans
received without a guarantee of the Government by legal persons or enterprises
without the status of a legal person in the Republic of Lithuania and of loans
granted to foreign economic entities (according to this Procedure, “economic
entities must register with BoL foreign loans received without the guarantee of
the Government by the Republic of Lithuania or loans granted to foreign economic
entities within ten business days from the day of receiving (granting) the loan
or other debt instrument”).
Resolution No 537 of 2 June 1997 of the Government of the
Republic of Lithuania on the application of the Special Data Dissemination
Standard (SDDS) of the International Monetary Fund in Lithuania. According to
this Resolution, BoL is appointed as coordinator of the application of the IMF
SDDS in Lithuania and is also responsible for the application of this Standard
to the data categories of the banking sector’s analytical accounts (monetary
survey), the balance of payments and the international investment position.
3. COMPILIATION OF BOP AND IIP
Balance of Payments and the International Investment Position
are compiled by the External Statistics Division of the Statistics Department of
the Bank of Lithuania. Compilation of these balances covers all activity
processes: analysis of methodology and data source, preparation of
methodological instructions for projects of statistical reporting forms and
their filling in, statistical data sampling process (determination of the number
of national economic entities providing statistical information), collection of
statistical data, their processing and preparation of the final data. When
preparing the BOP and the IIP all components of these balances (respective item
data) are checked in terms of internal consistency and consistency within a
respective period. Data obtained additionally are compared (agreed) with
respective data of other statistical sources.
3.1. System of Statistics
The national BOP and the IIP are compiled on the basis of
statistical reports. A part of statistical reporting forms are collected by the
Bank of Lithuania directly from national economic entities, and some portion of
these data are gathered by the Lithuanian Department of Statistics (Statistics
Lithuania). Works related with the compilation of the national BOP and the IIP
are included into the Work programme of Official Statistics approved by the
Director General of the Statistics Lithuania. Monthly, quarterly and annual
national BOP reporting data, as well as quarterly and annual IIP data and
external debt data are compiled and announced at the present time.
Since 2004 the new monthly and quarterly surveys were
designed according to the required statistical reporting requirements of the ECB
and Eurostat in the field of balance of payments and international investment
position statistics. These surveys enable the collection and compilation of BOP
and IIP data with the required geographical breakdown.
Quarterly and monthly balances of payments differ both, by
the number of reporting indicators, and the number of respondents providing
statistical reports. The scope of the quarterly BOP indicators complies with the
scope and composition of standard components (indicators) of the IMF Balance of
Payments.
BOP statistics are compiled on a monthly and quarterly basis
using a survey method from various data reporters. All quarterly reports by
reporting agents include:
all credit and debit transactions;
flow and stock data;
other changes in the value of stocks’ total:
of which changes in the prices of the financial assets and liabilities;
changes in the exchange rates vis-à-vis other currencies;
reclassifications and other changes; and
a country breakdown.
Much the same as the quarterly BOP, the monthly BOP is
compiled on the basis of statistical surveys. However, the number of respondents
submitting monthly statistical statements is significantly smaller than in the
case of the quarterly surveys. The number of indicators included therein is also
noticeably smaller. Monthly reporting data from other sectors are collected by
way of a sampling survey of economic entities. These economic entities are
selected according either to their level of representation in a specific
activity or to their scope of operations with non-residents. Of a total of
almost 5,000 other sector economic entities that present quarterly reporting
figures, about 260 entities submit monthly reports (statement B-09-04). The
monthly data obtained from the sampling survey of economic entities are grossed
up through the application of corresponding coefficients.
National commercial banks provide monthly report on inflows
from foreign banks and on outgoing payments to foreign banks. These data
contribute to the specification of the Register of Enterprises under survey.
All public institutions and commercial banks furnish the BoL
not only with quarterly reporting data, but also with their monthly figures.
As individual monthly BOP indicators are calculated with the
aid of extrapolation coefficients and by making appropriate evaluations,
aggregated data of a three-month period may not coincide with the figures of the
corresponding quarter. After the compilation of a quarterly BOP, data for the
individual months of that quarter are revised.
3.2. Data sources
BOP compilation by the BoL is based on the statistical data
collected from the following data sources and reporting agents:
|
Respondent |
Name of reporting form |
Contents of reporting form |
Frequency of reporting |
Timeliness for submission |
| Commercial banks |
Statistical
statement form B-09-01 “Statement for the compilation of the Balance of
Payments” |
Transactions
with non-residents in services, non-resident wages and salaries and other
labour relations, investment income (expenses) by types of investment (direct
investment, portfolio investment and other investment), current transfers.
Direct investment, Portfolio investment and other investment assets and
liabilities, specifying flows and stock data, changes in the value of stocks
by factors. Total stocks and transactions data are broken down
geographically. |
Quarterly |
Within 25 days
after the end of reference quarter |
| Statistical
statement form B-09-02 “Statement for the compilation of the Balance of
Payments” |
Only flows –
outflows of 40 main indicators during the reference month. |
Monthly |
Within 15 days
after the end of the reference month |
| Statistical
statement form B-09-03 “Statement on total incoming and outgoing
international payments |
Only the total of
incoming and outgoing international payments with an identification of the
customers during the month. |
Monthly |
On the 10th day
after the end of the reference month |
| Statistical statement about
inflows from abroad |
Data on pension amounts
transferred to former Russian soldiers. |
Monthly |
Within 15 days after the end
of the reference month |
| Bank of
Lithuania |
Statistical data
on official reserves assets, data on BoL balance sheet, BoL income and
expenses; information on repurchase transactions of BoL, data of foreign
exchange sale and purchase transactions, data on foreign loans without
government guarantees. |
Stocks and
changes in monetary gold, SDR’s, Reserve position of the Fund, foreign
exchange repurchase transactions other assets and other claims, data of
exchange rates, prices of monetary gold |
Monthly |
Data on official
reserve assets within 3 days after the end of the reference month. Data on
BoL income and expenses with non-residents within 15 days after the
reference month |
| Data from Bank of
Lithuania debt securities database |
Data on
securities balances by tools, issuer countries and sectors, currencies,
interest rates |
Monthly |
On demand |
| ECB |
Data from ECB central debt
securities database |
Data on securities balances
by tools, issuer countries and sectors, currencies, interest rates |
Monthly |
On demand |
| Non-MFIs |
Statistical statement form
B-09-04 on Financial-commercial activities of the enterprise with
non-residents |
Financial claims and
liabilities vis-à-vis non-residents (loans, trade credits, currency and
deposits, other financial claims/liabilities, long term and short term debt
securities. Investment income and expenses, services delivered (received) by
the enterprise to (from) non-residents by specification code). |
Monthly |
Within 15 days after the end
of the reference month |
| The Department
of Statistics to the Government of the Republic of Lithuania |
Statistical
statement form F-06 “Financial-commercial activities of the enterprise with
non-residents”. Data are collected from about 5,000 non-financial
enterprises. |
Financial claims
and liabilities vis-à-vis non-residents: portfolio investment (value of
shares, debt securities), financial derivatives, other investment (deposits,
loans, trade credit, other financial claims/liabilities); stocks –acquired/issued,
sold/repaid, other factors; investment income and expenses, services to/by
non-resident by type of services. Total stocks data and all transactions
data are broken down geographically |
Quarterly
Annualy |
Within 60 days
after the end of the reference period |
| Foreign trade
data on the basis of customs declarations and Intrastat’s surveys |
Exports and
imports of goods by type and partner country. |
Monthly |
After 25 days
after the end of the reference month (total exports and imports values only);
4 working days after data released |
| Statistical
statement form TUI-01 “Direct Investment Statement” The Department of
Statistics (submits about 3000 enterprises) |
All components
of FDI (equity capital (stocks, flows) reinvested earnings, dividends, debt
instruments (stocks and flows). All data are broken down by country and by
activity. FDI by directional principle (abroad and in the reporting
enterprises). |
Quarterly
Annually |
Within 60 days
after the end of the reference period |
| Reporting form
F-09 of enterprises providing tourism services |
Incoming and
outgoing tourism services in terms of value, number of tourists by country,
duration of a visit, number of one-day tourists |
Quarterly |
Within 60 days
after the end of the reference quarter |
| Accommodation
services reporting form HOT-01 |
Number of guests
by country, number of nights lodgings, income from non-residents. |
Quarterly |
Within 60 days
after the end of the reference quarter |
| Sanatorium and (or)
rehabilitation centre reporting form SAN-01 |
Number of guests
by country, number of nights lodgings, income from non-residents. |
Quarterly |
Within 60 days
after the end of the reference quarter |
| Statistical
statement on foreign humanitarian aid |
Data on foreign
granted by international organizations, type of aid, volume, value and by
activity |
Monthly |
Within 25 days
after the end of the reference month |
| Ministry of
Finance |
Statistical
statement form B-09-08 on dissemination of debt securities to non-residents
and foreign loans received from non-residents“ |
Data on debt
securities issued, sold and redeemed by the Government, foreign loans
received and granted on behalf of the State and with a guarantee of the
government; the use of the loans and the expenses for their servicing. |
Monthly |
Within 25 days
after the end of the reference month |
| Statistical
statement form B-09-05 „Inflows from non-residents for the privatized
objects in Lithuania“ |
Inflows received
from non-resident for privatized objects in Lithuania. |
Monthly |
Within 25 days
after the end of the reference month |
| Statistical
statement form B-09-06 on EU financial support of Lithuania |
Inflows from
PHARE, and EU structural funds foreign humanitarian aid. |
Monthly |
Within 25 days
after the end of the reference month |
| Statistical
statement form B-09-07 Lithuania’s payments to the EU budget |
Lithuania’s
payments to the EU budget. |
Monthly |
Within 25 days
after the end of the reference month |
| Reporting data on
consulate income of the Lithuanian budget. |
|
Quarterly
Annually |
Within 60 days
after the end of the reference period |
| Reporting data on
participation in international financial organizations |
Data on acquired
shares, contributions for subscribed shares |
Quarterly
Annually |
Within 60 days
after the end of the reference period |
| Reporting data on
loans to be issued and repaired and on funds invested abroad |
|
Monthly |
Within 3 days
after the end of the reference month |
| The State Border
Guard Service at the Ministry of Interior |
Cross-border
crossings by individuals |
Data on the
number of persons arriving in Lithuania and departing from non EU countries
by citizenship and type of transport used. |
Monthly |
Within 25 days
after the end of the reference month |
| Board of the
State Social Insurance Fund |
Inflows to the
fund and funds transferred abroad |
Data on the funds
used to pay pensions received from abroad and funds transferred abroad and
data on social insurance payments made by foreign diplomatic services
residing in Lithuania for the citizens of Lithuania they employ. |
Monthly |
Within 25 days
after the end of the reference month |
| Ministry of
Foreign Affairs |
Data on the
expenses of embassies and representative offices of Lithuania |
Data on the
expenses of embassies and representative offices |
Monthly |
Within 25 days
after the end of the reference month |
| Data on the
participation of the country in international non-financial organizations |
Data on entry and
membership fees |
Monthly |
Within 25 days
after the end of the reference month |
| Reporting data on
the implementation of bilateral technical assistance projects |
Data on the
project implementation by country |
Monthly |
Within 25 days
after the end of the reference month |
| Central
Securities Depository of Lithuania |
Statistics on
trading in securities |
Data on the
distributions of securities (purchasing and selling) accounted for in the
accounts of intermediaries of the public circulation of securities between
residents and non-residents (in total and broken down by country and by type
of investor’s sector). |
Monthly |
Within 25 days
after the end of the reference month |
| Securities
Commission |
Data on income |
Data on the
non-resident contributions and benefits of block of shares between residents
and non-residents |
Monthly |
Within 25 days
after the end of reference month |
| Data on received
income |
Income of
intermediaries of public circulation of securities |
Quarterly |
Within 40 days
after the end of reference quarter |
| OMX Nordic
Exchange |
Data on prices of
securities |
Data on prices of
equity and debt securities issued in the Baltic States. |
Daily |
Every working day |
| Pension,
collective investment, money-market funds |
Statistics on
portfolio investment |
Data on portfolio
investment abroad (flows, stocks and investment income) |
Monthly |
Within 10 days
after the end of reference month |
| State Tax
Inspectorate under MoF |
Statistics on
reimbursements of VAT |
Data on
reimbursements of value-added tax to foreign embassies and representative
offices residing in Lithuania |
Monthly |
Within 25 days
after the end of reference month |
| Reporting data on
wages paid to non-residents |
|
Quarterly
Annually |
Within 60 days
after the end of reference period |
| Local government |
Statistics on
inflows received from non-residents |
Data on the
inflows received from non-residents for the real estate sales |
Annually |
Within 60 days
after the end of reference year |
4. THE BOP COMPILATION METHODOLOGICAL PRINCIPLES
4.1. BOP definition and main concept
The balance of payments is a statistical statement that
systematically summarizes, for a specific time period, the economic transactions
of an economy with the rest of the world (transactions between residents and
nonresidents). A transaction itself is defined as an economic flow that reflects
the creation, transformation, exchange, transfer or extinction of economic value.
Economic transaction involves changes in ownership of
goods and /or financial assets, the provision of services, or the provision of
labor and capital.
The economic territory of a country consists of the
geographical territory administered by a government; within this territory,
persons, goods, and capital circulate freely. The economic territory of a
country includes the airspace, territorial waters, continental shelf lying in
international waters over which the country enjoys exclusive rights. The
economic territory of a country also includes territorial enclaves in the rest
of the world. These are clearly demarcated land areas—such as embassies,
consulates, military bases, scientific stations—located in other countries. In
addition, economic territory includes free zones.
Residents. Legal persons, enterprises without the rights
of the legal person and natural persons who permanently or temporarily, but no
longer than for one year reside in Lithuania and who in addition to being
engaged in business, industrial or any other economic activity, also have
economic interests in the territory of Lithuania. Enterprises or natural persons
permanently residing in the Republic of Lithuania, but operating outside its
territory (who have left abroad to work for less than one year period), also
Lithuania’s embassies, consulates, students, irrespective of the time of their
stay abroad, shall be considered residents of Lithuania.
Nonresidents. Legal and natural persons permanently
residing and operating in other countries or residing and operating in Lithuania
for less than one year period. Foreign embassies and consulates, foreign
students shall be considered as non-residents irrespective the length of their
stay in Lithuania.
All operations are valued at the market price, i.e. the price
for which the seller is ready to sell a product or service and the buyer is
ready to pay that price.
Claims and liabilities arise when there is change in
ownership. The time at which ownership changes is the time at which a
transaction is recorded. The change may be a legal one or a physical or economic
one involving control or possession.
The BOP is compiled on the basis of the double entry
principle — the main principle of accounting. It means that every recorded
transaction is represented by two entries with equal values. One of these
entries is designated a credit with a positive arithmetic sign; the other is
designated a debit with a negative sign. In principle, the sum of all credit
entries is identical to the sum of all the debit entries, and the net balance of
all entries in the statement is zero. However, in practice it is difficult to
reach this balance, since the data that characterized reverse sides of the same
economic operations are received from different information sources that do not
always match. Therefore, the BOP provides for a balancing item „Errors and
omissions“.
A compiling economy records credit entries as:
a) export of goods and services;
b) income from compensation of employees and investment;
c) reduction in foreign assets or increases in foreign
liabilities.
A compiling economy records debit entries as:
a) import of goods and services;
b) expenses on compensation of employees and investment;
c) increases in foreign assets and reduction in foreign
liabilities.
4.2. Structure and standard components
The standard components are grouped under two major headings:
the current account and the capital and financial account. The current account
is further subdivided into goods, services, income, and current transfers. The
capital and financial account covers transactions in external financial assets
and liabilities.
Current account
Merchandise trade
Until 1 May 2004 foreign trade statistics was prepared basing
on the data of the Single Administrative Document (further – SAD) of customs
declaration. Each month the Customs Department provides data filled out by the
exporters and importers to Statistics Lithuania. The volumes of exports and
imports used to be calculated by two trade systems: General and
Special. According to the Special Trade System imported goods are solely
those that are imported for domestic consumption. According to the General Trade
System imported goods are all the goods arriving in the territory of the country
(except transit transportation of goods through the territory of the country).
Official foreign trade volumes of the Republic of Lithuania were released basing
on the regulations of the General Trade System.
Having accessed to the European Union (further – EU) customs
borders were revoked. Now, while trading with the EU member countries, exporters
and importers do not need to fill in the SAD any longer. Accordingly, no main
source of foreign trade statistics data has left. In order to collect data on
foreign trade between Lithuania and the EU countries data collection system
Intrastat has been established.
Thus, foreign trade data of the Republic of Lithuania have
been divided in two parts: Extrastat and Intrastat. The Extrastat system
includes data on trade between Lithuania and non-member countries of the EU, the
source of these data being information of the SAD of customs declarations.
Intrastat is a data collection system based on information
from the enterprises trading with the EU countries. Instead of declaring the
volumes of goods each time when crossing the customs border, carriers of goods
shall produce information about the arrivals and dispatches of goods volumes to
the customs territorial office monthly. In order to make the burden of reporting
easier the goods carriers whose value arrivals of and dispatches over a year do
not exceed the value that had been estimated by Statistics Lithuania and
published in Official Gazette (Valstybes zinios) will be exempted from the
Intrastat reports. Moreover, the Intrastat report is substantially simpler and
contains fewer indicators than the SAD; in addition, the Intrastat data are
based on somewhat different methodological requirements.
Four indicators estimate foreign trade of Lithuania:
exports and imports will estimate trade volumes of Lithuania with
non-member countries of the EU, while dispatches and arrivals will
estimate trade with the EU countries. Taking into account the changes mentioned
above and aiming at compliance with the Eurostat requirements set forth for the
foreign trade statistics data production, regulations for information
preparation and release shall also change. The volumes of trade of Lithuania
with non-member countries (Extrastat) shall be calculated according to the
requirements of the Special Trade System. Concerning total volume of the
Lithuanian foreign trade (both Intrastat and Extrastat), Special and General
Trade systems concept shall not be used.
Also, we would like to refer your attention to the fact that
due to the changed data source, methodological and structural differences, the
Intrastat data shall not be compatible with the foreign trade data released
before 1 May 2004.
The data on goods delivered at the ports of transport
agencies are received from the reports of transport companies. Merchandise
exports and imports are valued on an f.o.b. prices basis. In this respect,
Lietuvos bankas make some adjustments for freight (about 6% of total imports).
Exports and imports of goods are valued on an f.o.b. basis.
In this respect, Lietuvos bankas makes some adjustments for freight (about
6% of total imports).
Services
Data on the services provided by resident non-financial
enterprises to non-residents and the services provided by non-residents to
Lithuanian economic entities are received on the basis of statistical research
carried out by Statistics Lithuania (in the form of quarterly surveys). All
categories of services are divided up in the questionnaire to Statistics
Lithuania, which enables the available data to be aggregated according to the
standard groups of services as defined in the BPM5 and the extended
classification of services by Eurostat and the OECD. More than 5,000 enterprises
complete the said questionnaire. Monthly data on services are collected by the
BoL from selected Lithuanian economic entities (approximately 260 enterprises).
Transportation. Covers all transportation – sea, air,
land, internal waterway, space, pipeline, supportind and auxiliary – services
that are performed by residents of one economy for those of another and that
involve the carriage of passengers, the movement of goods (freight), rentals (charters)
of carriers with crew, other transportation services and related supporting and
auxiliary services. The primary data source is the quarterly survey of the
cross-border transactions of non-bank entities with non-residents (F-06)
conducted by Statistics Lithuania.
Transport services of passenger covers all services
provided in the international transportation. Also include transportation of
passenger baggage and other items that may be carried at no extra cost, rental
services of all passenger vehicles with operator.
Transport services of freight includes transportation of
goods, rental services of all freight vehicles with operator.
Other transportation services includes services provided
in ports, airports and other terminal facilities, operation, maintenance and
repair services.
Other supporting and auxiliary transport services
includes cargo handling services, storage and warehousing services, services
provided by all aids to navigation, freight brokerage services.
Travel covers primarily the goods and services acquired
from an economy by travelers during visits of less than one year to that economy.
The goods and services are purchased by, or on behalf of, the travelers or
provided, without a quid pro quo (that is, are provided as a gift), for the
travelers to use or give away. Excluded are transportation of travelers within
the economies that they are visiting, where such transportation is provided by
carriers not resident in the particular economy being visited, as well as the
international carriage of travelers, both of which are covered in passenger
services under transportation. Also are excluded traveler’s goods purchased by
travelers for resale in the traveler’s own economy or in any other economy.
Travel is divided in two subcomponents: business travel and personal travel.
Communication services comprise postal, courier and
telecommunication services.
Construction services comprise construction abroad and
construction in the compiling economy.
Insurance services cover the provision of various types
of insurance to non-residents by resident insurance enterprises, and vice versa.
These services are estimated or valued by the service charges included in total
premiums rather than by the total value of the premiums. It comprises life
insurance and pension funding, freight insurance, other direct insurance,
reinsurance and auxiliary services; life Insurance and pension funding.
Financial services covers financial intermediation and
auxiliary services except those of life insurance enterprises and pension funds
(which are included in life insurance and pension funding) and other insurance
services that are conducted between residents and non-residents. Banks, stock
exchanges, factoring enterprises, credit card enterprises and other enterprises
may provide such services. Included are services provided in connection with
transactions in financial instruments, as well as other services related to
financial activity, such as advisory, custody and asset management services.
Computer and information services consist of hardware and
software-related services and data-processing services, news agency services and
other information provision services.
Royalties and license fees comprise franchises and
similar rights and other royalties and license fees.
Other business services comprise merchandise and other
trade-related services, operational leasing services, legal, accounting,
management consulting, and public relations services, advertising, market
research and public opinion polling, research and development, architectural,
engineering and other technical services, agricultural, mining and on-site
processing services.
Personal, cultural and recreational services comprises
audiovisual and related services, education services, health services, other
personal, cultural and recreational services.
Government services. It is a residual category covering
government transactions (including those of international organizations) not
contained in the other components of the Extended Balance of Payments Services
classification (EBOPS). Included are all transactions (in both goods and
services) by embassies, consulates, military units and defense agencies with
residents of economies in which the embassies, consulates, military units and
defense agencies are located and all transactions with other economies.
Income
Income covers two types of transactions between residents and
non-residents:
compensation of employees, which is paid to non-resident
workers (e.g. border, seasonal and other short-term workers);
investment income receipts and payments on external
financial assets and liabilities.
Compensation of employees comprises wages, salaries, and
other benefits, in cash or in kind, earned by individuals, in economies other
than those in which they are resident, for work performed for (and paid for by)
residents of those economies. Included are contributions paid by employers, on
behalf of employees, to social security schemes or to private insurance or
pension funds (whether funded or unfunded) to secure benefits for employees.
Investment income is income derived from ownership of
external financial assets and payable by residents of one economy to residents
of another economy. Investment income includes interest, dividends, remittances
of branch profits, and direct investors’ shares of the retained earnings of
direct investment enterprises. Investment income should be classified by direct,
portfolio and other investment components.
Direct investment income. Direct investment income,
namely income on equity and income on debt, covers income accruing to a direct
investor resident in one economy from ownership of direct investment capital in
an enterprise in another economy. Income on equity is subdivided into (i)
distributed income (dividends and distributed branch profits), and (ii)
reinvested earnings and undistributed branch profits. Reinvested earnings are
recorded in full for both inward and outward investment. Reinvested earnings
mean that a direct investor’s profit (loss) is not distributed in the form of
dividends but is retained by the enterprise concerned. Reinvested earnings are
recorded for the period under review during which the respective profit was made
(or loss incurred).
Portfolio investment income comprises income transactions
between residents and non-residents and is derived from holdings of shares,
bonds, notes, and money market instruments. This category is subdivided into
income on equity (dividends) and income on debt (interest).
Other investment income covers interest receipts and
payments on all other resident claims (assets) on and liabilities to
nonresidents. This category also includes, in principle, imputed income to
households from net equity in life insurance reserves and in pension funds.
Interest comprises interest on long- and short-term loans, on deposits, on other
claims/liabilities.
Current transfers
Current transfers are offset items to unilateral
transactions in which one economic entity provides a real resource or a
financial item to another entity without receiving any real resource or
financial item in exchange. These resources are consumed immediately or shortly
after the transfer is made. Current transfers are classified according to the
sector of the compiling economy into general government and other sectors.
General government transfers comprise current
international cooperation and cover current transfers, in cash or in kind,
between governments of different economies or between governments and
international organizations.
Other sectors transfers between other sectors of an
economy and non-residents comprise those occurring between individuals, between
non-governmental institutions or organizations (or between the two groups), or
between non-resident governmental institutions and individuals or
non-governmental institutions.
Capital account
The Capital account covers all transactions that involve the
receipt or payment of capital transfers and acquisition/disposal of
non-produced, non-financial assets. A capital transfer is transference of the
ownership of a fixed asset or the forgiveness of a liability. Capital transfers
are divided into two sub-components—general government and other sectors.
The main sources of data are: monthly data on capital
transfers to government and other sectors (provided by the Ministry of Finance);
data on debt forgiveness transactions of other sectors (cross-border
transactions of non-bank enterprises conducted by Statistics Lithuania); and
data on debt forgiveness transactions of banks (the quarterly survey of banks
B-09-01).
Financial account
The financial account covers all transactions associated with
changes of ownership in the foreign financial assets and liabilities of an
economy. Such changes include the creation and liquidation of claims on, or by
the rest of the world. All components are classified according to type of
investment or by functional subdivision (direct investment, portfolio investment,
financial derivatives, other investment, official reserve assets).
The data in the financial account are consolidated into a
single entry: decreases in assets and increases in liabilities are recorded with
the plus (+) sign; and increases in assets and decreases in liabilities are
recorded with the minus (-) sign.
Direct investment
It is the category of international investment that reflects
the objective of a resident entity in one economy (direct investor) obtaining a
lasting interest in an enterprise resident in an economy other than that of the
investor (direct investment enterprise). “Lasting interest” implies the
existence of a long-term relationship between the direct investor and the
enterprise and a significant degree of influence by the investor on the
management of the direct investment enterprise. According to the OECD Benchmark
Definition of Foreign Direct Investment, a holding of 10% of the voting rights
is recognized as the lowest limit under which a foreign direct investor is able
to participate in the management of a direct investment company. Foreign
investment holdings of less than 10% of the voting rights are attributed to
portfolio investment, instead of to direct investment. Direct investment
comprises the initial transaction between the two entities, that is, the
transaction that establishes the direct investment relationship, and all
subsequent transactions between them and among affiliated enterprises, both
incorporated and unincorporated.
Direct investment is classified primarily on a directional
basis, resident direct investment abroad and non-resident investment in the
Lithuania. Direct investment comprises equity capital (valued at market value),
reinvested earnings and other capital.
Equity capital comprises equity in branches, all shares (whether
voting or non-voting) in subsidiaries and associates (except non-participating,
preferred shares that are treated as debt securities and included under other
direct investment capital), and other capital contributions. Equity capital also
covers the acquisition by a direct investment enterprise of shares in its direct
investor.
The value of equity capital balances in foreign direct
investment is established by valuing the equity stocks of companies listed in
stock exchanges at market price, and the value of equity stocks of
unlisted companies at book value. It has to be noted that this
requirement is applied for calculating accumulated investment data but is not
applied for calculating direct investment flows.
Reinvested earnings consist of the direct investor’s
share (in proportion to direct equity participation) of earnings not distributed
as dividends by subsidiaries or associates and earnings of branches not remitted
to the direct investor. These reinvested earnings are recorded as income with an
offsetting capital transaction.
Other direct investment capital (or intercompany debt
transactions) covers the borrowing and lending of funds – including debt
securities, suppliers’ credits and non-participating preferred shares (which are
treated as debt securities), between direct investors and subsidiaries, branches,
and associates. Debt claims on the direct investor by the direct investment
enterprise are also recorded as direct investment capital.
The main data sources in compiling foreign direct investment
are the quarterly survey of enterprises involved in direct investment prepared
by Statistics Lithuania (TUI-01) and the quarterly survey of commercial banks
(B-09-01). Moreover, there are used data on FDI provided by the Ministry of
Finance, the local authorities, the Central securities depository.
FDI data is broken down by geographical area and by economic
activity (using ISIC/NACE codes corresponding to the economic activities used in
the Eurostat/OECD codification for economic activity groups).
Portfolio investment
Portfolio investment is understood as foreign investment
involving less than 10% of the voting rights and no extensive powers in
corporate management decisions. Portfolio investment covers transactions in
equity and debt securities. Debt securities are sub-divided into bonds and notes
and money market instruments. In the case of securities with coupons, the
interest accrued from the last payment of interest is included and, in that of
securities issued at a discount, the interest accumulated since the issue is
included. Inclusion of interest accrued is required for the financial account of
the quarterly balance of payments and the international investment position. The
offsetting entries are made in the respective income account.
The equity securities item covers all instruments
representing claims on the residual value of incorporated enterprises after the
claims of all creditors have been met. Stocks, shares, preference stocks or
shares, participation certificates or similar documents denote ownership of
equity. Transactions of shares of collective investment institutions, e.g.
investment funds, are also included.
Bonds and notes are securities issued with an initial
maturity of more than one year which usually give the holder (i) the
unconditional right to a fixed monetary income or contractually determined
variable monetary income (payment of interest being independent of the earnings
of the debtor) and (ii) the unconditional right to a fixed sum in repayment of
principal on a specified date or dates.
Money market instruments are securities issued with an
initial maturity of one year or less. They generally give the holder the
unconditional right to receive a stated, fixed sum of money on a specified date.
These instruments are usually traded, at a discount, in organized markets; the
discount is dependent upon the interest rate and the time remaining to maturity.
Financial derivatives
Financial derivatives are financial instruments that are
linked to a specific financial instrument, indicator or commodity, and through
which specific financial risks can be traded in financial markets in their own
right. Transactions in financial derivatives are treated as separate
transactions rather than as integral parts of the value of underlying
transactions to which they may be linked. Net flows associated with
interest-rate derivatives are recorded as financial derivatives, not as
investment income, in line with recent international agreement. Initial margin
payments are regarded as changes in deposits and should be recorded, if
identifiable, under “other investment”. The treatment of variation margin
payments depends on the form of the variation margin: options-style variation
margins are regarded, in principle, as changes in deposits and should be
recorded, if identifiable, under “other investment”. In the case of options, the
full premium (i.e. the purchase/sale price of the options and the implied
service charge) is recorded. The valuation of financial derivatives should be
conducted on a marked-to-market basis. Financial derivative asset and liability
positions in the international investment position statistics are recorded on a
gross basis, with the exception of those financial derivatives falling into the
category of reserve assets, which are recorded on a net basis.
Other investment
Other investment is defined as a residual category that
includes all financial transactions not covered in the direct investment,
portfolio investment, financial derivatives or reserve assets categories. Other
investment covers trade credits, loans, currency and deposits and other assets (other
liabilities). It also encompasses the offsetting entries for accrued income on
instruments classified under other investment.
Loans, currency and deposits cover all loans granted to
non-residents as well as loans received from non-residents, financial leases,
repo, overdrafts, deposit accounts, notes and coins issued by foreign
governments and held by residents, demand deposits.
Other assets and other liabilities cover operations not
included in the aforementioned items. Other assets include non-resident loans
that have not been repaid or extended, as well as outstanding dividends and
interest, whereas other liabilities comprise outstanding loans to non-residents,
outstanding dividends, etc.
Official reserve assets
Official reserve assets – highly liquid, marketable and
creditworthy foreign assets controlled by the central bank that may be used for
direct financing of the payments imbalances and other similar purposes. Official
reserve assets are comprised by monetary gold, holdings of SDR, and Reserve
position in the Fund, central bank assets in foreign currency (in convertible
currency in banknote and coins as well as funds in the accounts of foreign banks),
liquid securities of foreign governments (including repurchase agreements) and
other liquid assets. The official reserve assets data are compiled in accordance
with the methodology set out both the 5th edition of the Balance of Payments
Manual and Operational Guidelines for the Data Template on International
Reserves and Foreign Currency Liquidity.
Reserve assets are compiled in accordance with the gross
concept, without any netting with monetary authorities’ liabilities.
Since December 2001, a gold holding has been revalued once a
month on the last working day at the value of the London gold price fixing.
Holdings of foreign exchange (cash) are revalued on a daily basis. Securities
are revalued once a month on the last working day using the mid-market prices
prevailing on the secondary markets. The value of the securities at the
reference date includes accrued interest.
International reserves and foreign currency liquidity data
template shall mean the statistical statement that reports, with the
appropriate breakdown, stocks of reserve assets, other foreign currency assets
and reserve-related liabilities of the reference date, and predetermined and
contingent short-term net drains connected to official reserve assets and other
foreign currency assets.
Foreign assets in non-convertible currencies, as well as all
other assets that do not meet the reserve asset concept are excluded.
The Balance Sheet of the Bank of Lithuania data received from
the Financial Accounting Information System (FAIS) of the BoL, brought into
operation in the beginning pf 2007, is the major source for accounting of
changes in official reserve assets (flows and stocks).
5. INTERNATIONAL INVESTMENT POSITION
Lithuania’s IIP is compiled on the basis of real stock data
and separately for financial assets and liabilities. The net IIP (the stock of
external financial assets minus the stock of external liabilities) often is used
to analyze developments and trends in the performance of an economy vis-à-vis
the rest of the world as of a specific date. In relation to the balance sheet of
an economy, the net position combined with an economy’s stock of non-financial
assets shows the net worth of economy and the net lender/borrower status of an
economy.
The position at the end of a specific period reflects
financial transactions, valuation changes, and other adjustments, all of which
affect the level of assets or liabilities, that occurred during the period.
The foreign assets component includes direct investment
abroad, portfolio investment, and other investment and reserve assets. The
foreign liabilities component includes direct investment in Lithuania, portfolio
investment and other investment. Other investment is subdivided into trade
credits, loans, currency and deposits, other assets and liabilities.
The data on the assets and liabilities positions are broken
down further by sector and show the position as at the end of the reference
period. The methodology used to compile the IIP data is based on the BPM5. A
country breakdown is also available.
The IIP data are used to calculate gross external debt.
6. GROSS EXTERNAL DEBT
Gross external debt is the amount, at any given time, of
disbursed and outstanding contractual liabilities of residents of a country to
nonresidents. Gross external debt comprises debt securities, the short and long
term loans drawings, currency and deposits of nonresidents, trade credits
liabilities and other financial liabilities to nonresidents.
Currently the BoL compiles and disseminates the following external debt
statistics:
-
gross external debt;
-
net external debt;
-
gross external debt service;
-
short-term gross external debt on a remaining maturity
basis (not yet disseminate).
Gross external debt is the outstanding amount, at any given
time, of those actual current, and not contingent, debt liabilities that are
owed to nonresidents by residents of an economy. This definition of gross
external debt fully complies with the one given in the External Debt Statistics
Guide (IMF, 2003). Accordingly, gross external debt covers debt securities,
short and long term loans, non-resident deposits held in Lithuanian banks, trade
credits and other financial liabilities to non-residents. Equities, financial
derivatives and other contingent liabilities (guarantees, etc.) are not included
into the gross external debt.
Net external debt is, at a given time, gross external debt less gross
external assets in debt instruments.
Gross external debt-service is the amount of payments (both principal and
interest) actually made to satisfy debt obligations through a period.
Short-term gross external debt on a remaining maturity basis
is the amount of debt liabilities maturing in the coming year. Specifically, it
covers not only short-term gross external debt but also the part of long-term
debt liabilities that are due for payment within one year or less.
External debt statistics is classified by:
-
institutional sector (general government, monetary
authorities, banks, other sectors). Debt liabilities between enterprises in a
direct investment relationship are presented separately from the other sectors’
(financial enterprises, excluding MFIs; non-financial institutions; households
and non-profit institutions serving households) liabilities. However, direct
investment liabilities of the banks’ sector are included into the banks’
sector debt liabilities by not singling them out separately;
-
maturity (short-term, long-term). Gross and net external
debt as well as gross external debt service data are broken down by original
maturity. Short-term gross external debt is also presented on a remaining
maturity basis;
-
type of a financial instrument (debt securities, loans,
currency and deposits, trade credits, other debt liabilities).
Data sources of the gross and net external debt and of gross
external debt servicing are the same as those used for the compilation of
Lithuania’s financial account. When evaluating the short-term external debt by
remaining maturity, the BoL uses its internal the debt securities database,
foreign loans register, and credit institutions supervision data.
7. REVISION
After the compilation of a quarterly BOP, data of separate
months of this quarter are revised. After the compilation annual data, quarterly
BOP, IIP and external debt data are revised accordingly.
8. PUBLICATION OF BOP, IIP AND OFFICIAL RESERVE ASSETS
The detailed time series data on Balance of Payments,
International Investment Position, Official Reserve Assets, External Debt are
posted on the BoL web site (http://www.lb.lt/eng/statistic/index.html).
Aforementioned data also published in the BoL „Monthly Bulletin“, quarterly
publication „Balance of Payments of the Republic of Lithuania“
(http://www.lb.lt/eng/publications/index.html).
The monthly BOP data are made 30 working days after the end
of a reporting month.
The quarterly BOP and IIP data are made 86-88 days after the
end of a reporting quarter. The Official Reserve Assets data are to be
disseminated within one week after the end of the reference month. The quarterly
publication „Balance of Payments of the Republic of Lithuania“ are to be
published 2-3 weeks after the quarterly data release.
The monthly BOP, Official Reserve Assets and quarterly BOP,
IIP, External debt data are made according Advance Release Calendar. The
Calendar is published to meet the requirements of the Special Data Dissemination
Standard approved by the IMF.
