Tranlated by Sabrin Qadah
The preliminary results of international investment and external debt of Palestine at the end of the second quarter 2016, which were issued by the Palestinian Central Bureau of Statistics and the Palestinian Monetary Authority, showed that the total assets of the Palestinian economy balances invested abroad amounted to $6,020 million.
Preliminary results of international investment and external debt of Palestine also pointed out that the balances the Palestinian economy invested outside of Palestine until the end of the second quarter of 2016 have exceeded the balances of foreign investments in the Palestinian economy (foreign assets - foreign liabilities) in a value of $1,172 million.
Local cash deposits in foreign banks, in addition to foreign exchange located in the Palestinian economy, formed the largest share representing (65.2%) of the total value of foreign assets.
Assets of palestinian economy balances invested abroad, which equal $6,020 million, were distibuted between direct foreign investment by 7.0%, portfolio investment by 18.6%, reserve assets up to 6.7%, and other investments (mainly currency and deposits) by 67.7%. At the sector level, foreign investments of the banking sector have formed 74.4% of the total foreign assets of the Palestinian economy.
The total balances of foreign liabilities (obligations) on the Palestinian economy (non-resident balances invested in Palestine) were about $4.848 million, distributed among foreign direct investment by 51.7%, and portfolio investment by 13.4%, and other investments (mainly loans and deposits from abroad) 34.9% . At the sectoral level, foreign investment in the banking sector has accounted for about 34.6% of the total foreign liabilities of the Palestinian economy.
In total, the preliminary results indicated that the total external debt stock on the Palestinian economy has reached about $1,693 million distributed between the government sector by 63.5%, 32.8% of the banking sector, and other sectors (financial, non-financial institutions, civil companies and households) by 3.7%.
It should be noted that the international investment situation represents a record of residents investments balance in Palestine (individuals, companies and government) invested abroad under the name of (assets) on the one hand, and balances owned by residents outside of Palestine (individuals, companies and governments) invested in Palestine under the name (liabilities) of on the other hand.
these assets and liabilities, (based on the "Payment Balance Preparation Manual," the fifth edition of the International Monetary Fund in 1993) are divided to direct investment (investment by 10% or more of the capital of a non-resident foundation), portfolio investment (investment of less than 10% of the capital of a non resident foundation as well as investing in bonds) and other investments (balances of trade credits, loans, currency and deposits and any assets or liabilities), as well as reserve assets defined as assets held by central banks / monetary authority to address imbalances in the balance of payments, which fall within the assets-only side.
The external debt represents a record of balances of debt owed by the sectors of the Palestinian economy for the benefit of non-residents, including loans from non-resident deposits deposited in the banking sector in Palestine, the Palestinian bonds bought by non-residents and debt transactions that are made between non-resident companies and those subsidiaries in Palestine and any other obligations on the Palestinian economy. Moreover, the external debt data are obtained from the liabilities side in the international investment situation system (debt items), based on the external debt statistics manual issued by the International Monetary Fund in 2003 which is harmonized with the Balance of Payments Manual and international investment fifth edition.