Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA)

The Net Stock of the International Investment Position (IIP) Amounted to USD 1,659 Million at the End of the Fourth 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 fourth quarter 2018.

The primary results of the IIP (external assets – foreign liabilities) for Palestine at the end of the fourth quarter 2018 revealed that the net IIP amounted to USD 1,659 million, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad.  

The resident deposits in foreign banks and foreign exchange in the Palestinian economy accounted for the bulk of the external assets, constituting 59% of the total value of external assets.

The total stocks of External Assets for Palestinian economy amounted to USD 6,597 million, the Foreign Direct Investment Abroad contributed to 5%, Portfolio Investments abroad reached 22%, while Other Foreign Investments Abroad (mainly currency and deposits) reached 65% and Reserve Assets amounted to 8%. At sectoral level, the external investments of banks sector represented a large share of the external assets, standing at 69% of the total value of external assets for Palestinian economy.

The Foreign Direct Investment in the Palestinian economy accounted for the bulk of the total value of foreign liabilities, constituting 55%.

The total stocks of Foreign Liabilities in Palestine (stocks of non-residents invested in Palestine) amounted to USD 4,938 million, the Foreign Direct Investment in Palestine contributed to 55%, Portfolio Investments in Palestine reached 15% and Other Investments in Palestine (mainly loans and deposits from abroad) amounted to 30%. At sectoral level, the foreign investments in banks sector contributed a major value in the foreign liabilities, represented by 35% 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 fourth quarter 2018

 

The Gross External Debt on the Palestinian economic sectors reached USD 1,535 million, the debt on government sector represented 67%, while debt on banks sector reached 27%, and debt on other sectors (nonbank financial corporations, non-financial corporations, NGOs and households sector) amounted to 3%, and the lending between affiliated companiesreached 3%.

The International Investment Position(IIP) is aaccounting 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.  

 

 

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

Third and Fourth Quarters, 2018

 

                                                                                 Value in million USD   

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

Third and Fourth Quarters, 2018

 

Value in million USD   

 

Stock at the end of the Fourth Quarter 2018

 

 

Stock at the end of theThird Quarter 2018

 

 

Economic Sector

 

 

1,032

 

 

1,037

 

 

General Government

 

 

117

 

 

92

 

 

Short-term

 

 

915

 

 

945

 

 

Long-term

 

 

0

 

 

0

 

 

Monetary Authorities

 

 

0

 

 

0

 

 

Short-term

 

 

0

 

 

0

 

 

Long-term

 

 

417

 

 

481

 

 

Banks

 

 

196

 

 

204

 

 

Short-term

 

 

221

 

 

277

 

 

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

 

 

1,535

 

 

1,604

 

 

Gross External Debt Position

 


 

TOTAL

Other Sectors

Banks Sector

Government Sector

Monetary Authorities (PMA)

Economic Sector

 

 

 

 

 

Investments Stocks by

Type of Investment

House- Holds Sector

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

1,659

-962

-190

2,838

-906

879

International Investment Position (net)*

6,597

36

975

4,581

126

879

Total External Assets

347

11

336

0

0

0

Foreign Direct Investment Abroad

1,451

0

438

942

0

71

Portfolio Investments Abroad

4,261

25

201

3,639

126

270

Other Investments Abroad

3,884

25

37

3,552

0

270

Of which: currency and deposits**

538

0

0

0

0

538

Reserve Assets

4,938

998

1,165

1,743

1,032

0

Total Foreign Liabilities

2,721

998

720

1,003

0

0

Foreign Direct Investment in Palestine

726

0

403

323

0

0

Foreign Portfolio Investments in Palestine

1,491

0

42

417

1,032

0

Foreign Other Investments in Palestine:

1,063

0

31

0

1,032

0

Of which: loans from abroad

417

0

0

417

0

0

Of which: currency and deposits***

Categories: PMA, Statistics

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