Recommendation of the European Central Bank of 16 July 2004 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 (ECB/2004/16)
Date: 2004-07-16
Institutions: European Central Bank
Subjects: European Central Bank, balance of payments, economic statistics, euro area, exchange of information, foreign-exchange reserves, national statistics, statistical method

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EUROPEAN CENTRAL BANK

RECOMMENDATION OF THE EUROPEAN CENTRAL BANK

of 16 July 2004

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

(ECB/2004/16)

(2004/C 292/05)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank,
and in particular to Article 5.1 and the third indent of Article 34.1 thereof,

Whereas:

(1)

(2)

(3)

To fulfil its tasks, the European System of Central Banks (ESCB) requires comprehensive and reliable
balance of payments and international investment position statistics and the international reserves
template, showing the main items affecting monetary conditions and exchange markets in the euro
area. The European Central Bank's (ECB's) statistical requirements in this area are laid down in
Guideline ECB/2004/15 of 16 July 2004 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 reserve template (1).

Article 5.1, first sentence, of the Statute requires the ECB, assisted by the national central banks
(NCBs), to collect either from the competent authorities other than NCBs or directly from economic
agents the statistical information necessary in order for it to undertake the tasks of the ESCB. Article
5.1, second sentence, provides that for these purposes it shall cooperate with the Community insti-
tutions or bodies and with the competent authorities of the Member States or third countries and
with international organisations.

Information necessary to meet the ECB's requirements in the field of balance of payments and inter-
national investment position statistics may be collected and/or compiled by competent authorities
other than NCBs. Therefore, some of the tasks to be undertaken to meet these requirements require
cooperation between the ECB or the NCBs and such competent authorities, in line with Article 5.1
of the Statute. Article 4 of Council Regulation (EC) No 2533/98 of 23 November 1998 concerning
the collection of statistical information by the European Central Bank (2) requires the Member States
to organise themselves in the field of statistics and to cooperate fully with the ESCB in order to
ensure the fulfilment of the obligations arising out of Article 5 of the Statute.

(1) OJ L 354, 30.11.2004.
(2) OJ L 318, 27.11.1998, p. 8.

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(4)

(5)

(6)

(7)

(8)

(9)

In cases where, in accordance with national rules and established practices, the reporting agents
report to competent authorities other than NCBs, such authorities and their respective NCBs have to
cooperate with each other to ensure that the statistical requirements of the ECB are met. In Ireland
the Central Statistics Office (CSO), and in Italy the Ufficio Italiano dei Cambi (UIC), collect and
compile necessary information in the field of balance of payments and international investment
position statistics. In order to meet the said statistical requirements, the Central Bank and Financial
Services Authority of Ireland and the CSO, and the Banca d'Italia and the UIC, should cooperate
with each other. Such cooperation should include the establishment of a permanent structure for
transmission of data, unless the same result is already achieved by national legislation. The UIC, in
accordance with Italian Legislative Decree No 319/9 of 26 August 1998 (1), is an instrumental entity
of the Banca d'Italia.

As laid down in Article 4(3) of Guideline ECB/2004/15, where competent authorities other than
NCBs are the source of statistical information marked as confidential, such information will be used
by the ECB exclusively for the exercise of ESCB-related statistical tasks, unless the reporting agent or
the other legal or natural person, entity or branch which provided the information, assuming that it
can be identified, has explicitly given its consent to the use of such information for other purposes.

Data on monthly and quarterly balance of payments and quarterly and annual international invest-
ment position statistics showing the main items affecting monetary conditions and exchange
markets in the euro area should be made available to the Central Bank and Financial Services
Authority of Ireland and the Banca d'Italia in a timely manner. For this purpose the required statis-
tical information should be transmitted according to modalities agreed upon with the respective
NCB or, in the absence thereof, on or before the 30th working day following the month to which
data relate for monthly balance of payments data, within three months of the end of the quarter to
which data relate for quarterly balance of payments and international investment position data and
within nine months of the date to which data relate for the annual international investment position
data.

The centralised securities database (CSDB), which will in the future be used for many different statis-
tical (compilation and production) and non-statistical (economic, financial stability or operation
analyses) purposes, will be made available to NCBs. The data content will be made available to
competent authorities other than NCBs, subject to any legal constraints. This will, notably, assist
their production of the required data for the compilation of the euro-area transactions and positions
statistics concerning portfolio investment. In particular, by combining information from the CSDB
with data collected on a security-by-security basis, it should be possible to accurately compile trans-
actions and positions in portfolio investment securities issued by euro-area residents and held by
residents in other euro-area countries. This will ultimately allow the compilation of a sectoral break-
down for the euro-area portfolio investment liabilities data.

It is necessary to set up a procedure to carry out technical amendments to the Annexes to this
recommendation in an effective manner, provided that such amendments neither change the under-
lying conceptual framework nor affect the reporting burden of reporting agents in Member States.
Account will be taken of the views of the Statistics Committee of the ESCB (hereinafter ‘the STC’)
when following this procedure. NCBs and other competent national authorities may propose such
technical amendments to the Annexes to this recommendation through the Statistics Committee
and its relevant working group.

Since the adoption of Recommendation ECB/2003/8 of 2 May 2003 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 (2), tangible progress has been
made with new requirements and data collection and compilation methods within the euro area. It
is therefore necessary to replace Recommendation ECB/2003/8 with the present recommendation,

(1) Gazzetta ufficiale della Repubblica italiana No 206 of 4 September 1998.
(2) OJ C 126, 28.5.2003, p. 7.

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HAS ADOPTED THIS RECOMMENDATION:

Article 1

Definitions

For the purposes of this recommendation:

— ‘participating Member State’ shall mean a Member State which has adopted the single currency in

accordance with the Treaty,

— the term ‘resident’ shall have the same meaning as defined in Article 1 of Regulation (EC) No 2533/98,

— ‘euro area’ shall mean the economic territory of the participating Member States, and the ECB. Terri-
tories forming part of, or countries associated with, euro-area Member States are given in Annex III,
Table 10,

— ‘Eurosystem’ shall mean the NCBs of the participating Member States and the ECB,

— ‘cross-border transaction’ shall mean any transaction that creates or redeems, in full or in part, claims
or debts, or any transaction that implies the transfer of a right over an object between residents of the
euro area and non-euro-area residents,

— ‘cross-border positions’ shall mean the stock of financial claims on and financial liabilities to non-euro-
area residents. Cross-border positions shall also encompass (i) land, other tangible non-produced assets
and other immovable assets physically located outside the euro area and owned by euro-area residents
and/or located inside the euro area and owned by non-euro-area residents and (ii) monetary gold and
special drawing rights (SDRs) owned by euro-area residents.

However, to the extent necessary to compile the portfolio investment account and the portfolio invest-
ment income account within the balance of payments statistics, and the portfolio investment account
within the international investment position statistics, covering the euro area, the terms ‘cross-border
positions’ and ‘cross-border transactions’ also include positions and transactions in the assets and/or
liabilities of euro-area residents vis-à-vis residents of other euro-area Member States,

— ‘reserve assets’ shall mean highly liquid, marketable and creditworthy claims held by the Eurosystem on
non-euro-area residents and denominated in currencies other than the euro, plus gold, reserve positions
in the IMF and SDR holdings,

— ‘other foreign currency assets’ shall mean (i) claims held by the Eurosystem on euro-area residents
denominated in currencies other than the euro and (ii) claims held by the Eurosystem on non-euro-area
residents denominated in currencies other than the euro which do not meet the liquidity, marketability
and creditworthiness criteria of reserve assets,

— ‘reserve-related liabilities’ shall mean predetermined and contingent short-term net drains on the Euro-

system, similar to reserve assets and other foreign currency assets of the Eurosystem,

— ‘balance of payments’ shall mean the statistical statement that reports, with the appropriate breakdown,

cross-border transactions during the period under review,

— ‘international reserves 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
Eurosystem at a reference date,

— ‘international

investment position’ shall mean the balance sheet that reports, with the appropriate

breakdown, the stock of cross-border financial assets and liabilities at a reference date,

— ‘security-by-security’ data collection shall mean the collection of data broken down into individual

securities.

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Article 2

Provision of statistical information to the NCBs

In so far as the collection of statistical information concerning cross-border transactions and positions
1.
is entrusted to the addressees of this recommendation, each shall ensure that it is made available to the
respective NCB in a timely manner. For this purpose, unless otherwise agreed with the said NCB, the
required statistical
information shall be transmitted on or before the 30th working day following the
month to which data relate for monthly balance of payments data, within three months of the end of the
quarter to which data relate for quarterly balance of payments and international investment position data
and within nine months of the date to which data relate for the annual international investment position
data.

The information shall be made available in accordance with the statistical standards and requirements
2.
of the ECB concerning balance of payments and international investment position statistics as laid down in
Annexes I, II, III, IV, V and VII to this recommendation. Without prejudice to the ECB's monitoring task as
laid down in Annex VI to this recommendation, its addressees shall monitor the quality and reliability of
statistical information made available to the respective NCB.

Article 3

Permanent cooperation

The addressees of this recommendation shall establish with their respective NCB, in writing, the appro-
priate modalities of cooperation to ensure a permanent structure for transmission of data which fulfils the
statistical standards and requirements of the ECB, unless the same result is already achieved by national
legislation.

Article 4

Simplified amendment procedure

Taking account of the views of the STC, the Executive Board of the ECB shall be entitled to make technical
amendments to the Annexes to this recommendation, provided that such amendments neither change the
underlying conceptual framework nor affect the reporting burden of reporting agents in Member States.

Article 5

Final provisions

1.

2.

This recommendation replaces Recommendation ECB/2003/8.

This recommendation is addressed to the CSO in Ireland and the UIC in Italy.

Done at Frankfurt am Main, 16 July 2004.

The President of the ECB

Jean-Claude TRICHET

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STATISTICAL REPORTING REQUIREMENTS OF THE EUROPEAN CENTRAL BANK

ANNEX I

1.

Statistical obligations of the national central banks (NCBs)

1.1. The NCBs make available to the European Central Bank (ECB) data on the cross-border transactions, stocks of
reserve assets, other foreign currency assets, reserve-related liabilities and cross-border positions necessary to enable
it to compile the aggregated balance of payments and international investment position statistics and the interna-
tional reserves template of the euro area. The data are made available in accordance with the deadlines contained in
Table 13 of Annex III.

1.2. The data are accompanied by readily available information on single major events and on reasons for revisions,
when the magnitude of the change to the data caused by such single major events and by revisions is significant, or
upon request by the ECB.

1.3. The required data for monthly and quarterly transactions and quarterly and annual positions are made available to
the ECB as laid down in Annexes II, III and IV, which conform to current international standards, notably the fifth
edition of the International Monetary Fund Balance of Payments Manual. In particular, the required data on trans-
actions and positions concerning portfolio investment assets in euro-area securities broken down by sector of the
euro-area resident issuer are made available as laid down in Annex II, Sections 1.1, 1.2 and 3 and Annex III, Tables
1, 2, 4 and 5.

1.4. The required data on the balance of payments are made available on a monthly and quarterly basis. The quarterly
balance of payments data include a geographical breakdown for the counterparts laid down in Table 9 of Annex III.
The required data on the international reserves template are made available as at the end of the month to which
the data relate. The required data on the international investment position are made available on a quarterly and
annual basis. The annual international investment position data include a geographical breakdown for the counter-
parts laid down in Table 9 of Annex III.

1.5. For the analysis of the international role of the euro as an investment currency, the required data broken down by

currency are made available on a semi-annual basis as laid down in Table 6 of Annex III.

1.6. From March 2008 (starting with data corresponding to January 2008 transactions and end of 2007 positions)
euro-area portfolio investment collection systems conform to one of the models set out in the table contained in
Annex VII.

2.

Timeliness

2.1. The data required for the compilation of the monthly balance of payments of the euro area are made available to
the ECB by the close of business on the 30th working day following the end of the month to which the data relate.

2.2. The data required for the compilation of the quarterly balance of payments of the euro area is made available to

the ECB within three months of the end of the quarter to which the data relate.

2.3. The data required for the compilation of the international reserves template of the Eurosystem are made available

to the ECB within three weeks of the end of the month to which the data relate.

2.4. From 1 January 2005, the data required for the compilation of the quarterly international investment position of
the euro area are made available to the ECB within three months of the end of the quarter to which the data relate.

2.5. The data required for the compilation of the annual international investment position of the euro area are made

available to the ECB within nine months of the end of the year to which the data relate.

2.6. Transactions and positions in debt securities broken down by currency of issue and by sector of the issuer shall be

made available to the ECB within six months of the end of the period to which the data relate.

2.7. Revisions concerning the balance of payments and the international investment position of the euro area are made

available to the ECB according to the time schedule laid down in Annex V.

2.8. The national collection of these data is organised with a view to meeting these deadlines.

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3.

Transmission standard

The required statistical information is made available to the ECB in a form which meets the requirements laid down
in Annex V of this recommendation.

4. Quality of the statistical information

4.1. Without prejudice to the ECB's monitoring tasks as laid down in Annex VI, the NCBs, in cooperation with compe-
tent authorities other than NCBs where relevant, ensure the monitoring and the assessment of the quality of statis-
tical information made available to the ECB. The ECB assesses in a similar manner data relating to the euro area
balance of payments,
investment position statistics and international reserves. The assessment is
carried out in a timely manner. The Executive Board of the ECB reports yearly to the Governing Council on the
quality of the data.

international

4.2. The assessment of the quality of data on portfolio investment transactions and positions, as well as on related
income is subject to sufficient coverage of the securities information in the centralised securities database (CSDB).
The ECB, as administrator of the CSDB, monitors whether, from June 2006 onwards, coverage of the securities
information is sufficient to enable NCBs, or other competent authorities where relevant, to meet fully the quality
standards specified in Annex VII as well as other quality criteria defined in this recommendation.

4.3. For the provision of data on transactions and positions concerning portfolio investment assets in euro area securi-
ties, broken down by sector of the euro-area resident issuer as laid down in Annex II, Sections 1.1, 1.2 and 3 and
Annex III, Tables 1, 2, 4 and 5, the use of estimates is allowed until security-by-security portfolio investment collec-
tion systems become mandatory.

4.4. For the provision of data on currency of issue in respect of portfolio investment data as laid down in Annex III,
Table 6, the use of estimates is allowed until security-by-security portfolio investment collection systems become
mandatory.

4.5. The ECB's monitoring of the quality of statistical information may include scrutiny of revisions made to these data:
first, to include the latest assessment of the statistical information, thereby improving the quality and secondly, to
ensure as far as possible consistency between the corresponding balance of payments items for each of the different
frequencies.

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ANNEX II

STATISTICAL REQUIREMENTS OF THE EUROPEAN CENTRAL BANK

1.

Balance of payments statistics

The European Central Bank (ECB) requires balance of payments statistics at two frequencies: monthly and quarterly
in respect of the corresponding reference calendar periods. Annual data are compiled by adding up the quarterly
data reported by the Member States for the corresponding year. As far as possible, balance of payments statistics
should be consistent with other statistics provided for the conduct of monetary policy.

1.1. Monthly balance of payments statistics

O bj e c ti v e

The objective of the monthly balance of payments of the euro area is to show the main items affecting monetary
conditions and exchange markets (see Annex III, Table 1).

R e q u i r e me n t s

It is essential that the data are suitable for use in the calculation of the balance of payments of the euro area.

In view of the short deadline for the provision of the monthly balance of payments data, their highly aggregated
nature and their use for monetary policy purposes and foreign exchange operations, the ECB allows some departure
from international standards (see Article 2(3) of Guideline ECB/2004/15), where unavoidable. Recording on a full
accruals or transactions basis is not required. In agreement with the ECB, national central banks (NCBs) may
provide data on the current and financial account on a settlement basis. Where necessary to meet the deadline, the
ECB will accept estimates or preliminary data.

The requirement for each broad category of transaction is assets and liabilities (or credits and debits for current
account items). In general this requires NCBs, as regards external transactions, to distinguish between transactions
with residents of other euro-area Member States and transactions outside the euro area. NCBs do this in a consistent
manner.

When membership of the euro area changes, the NCBs are required to implement the change in the definition of
the country composition of the euro area from the date on which the change in membership takes effect. Best esti-
mates for historical data covering the enlarged euro area are requested from NCBs of the euro area in its previous
composition and of the new participating Member State(s).

In order to permit a meaningful aggregation of the data relating to the euro area on a monthly basis in the area of
portfolio investment, a distinction is required between transactions in securities issued by euro-area residents and
transactions in securities issued by non-euro-area residents. The statistics on net transactions in portfolio investment
assets of the euro area are compiled by aggregating reported net transactions in securities issued by non-euro-area
residents. Statistics on net transactions in portfolio investment liabilities of the euro area are compiled by consolida-
tion of net transactions in total national liabilities and net transactions in securities issued and purchased by euro-
area residents.

An analogous reporting requirement and compilation method for the aggregate data are applied for portfolio
investment income.

With a view to compiling the monetary presentation of the balance of payments, NCBs are required to submit the
data broken down by institutional sector. For the monthly balance of payments the following is the sectoral break-
down:

— for direct investment: (i) MFIs (excluding central banks); and (ii) other sectors,

— for portfolio investment assets: (i) monetary authorities; (ii) MFIs (excluding central banks); and (iii) non-MFIs,

— for other investment: (i) monetary authorities; (ii) MFIs (excluding central banks); (iii) general government; and

(iv) other sectors.

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With a view to compiling a sectoral breakdown of the balance of payments, thereby allowing the construction of a
monetary presentation, NCBs will be required to provide, from the date laid down in Table 13 of Annex III to the
present recommendation, data on net transactions in portfolio investment securities issued by euro-area residents
broken down by the institutional sector to which the issuer belongs. In addition, portfolio investment liabilities will
include a breakdown by institutional sector of the domestic issuer.

The statistics on net transactions in portfolio investment liabilities of the euro area broken down by sector are then
compiled by consolidation of the respective sectors' net total national liabilities and the corresponding net transac-
tions in securities issued and purchased by euro-area residents.

From March 2008, for transactions related to January 2008, NCBs (and other competent national authorities where
appropriate), collect portfolio investment data according to one of the models set out in the table contained in
Annex VII.

1.2. Quarterly balance of payments statistics

Objective

The objective of the quarterly balance of payments of the euro area is to provide more detailed information to
permit further analysis of external transactions. These statistics notably contribute to the compilation of the euro-
area sectoral and financial accounts and to the joint publication of EU/euro-area balance of payments in coopera-
tion with the Commission of the European Communities (Eurostat).

Requirements

Quarterly balance of payments statistics conform as far as possible to international standards (see Article 2(3) of
Guideline ECB/2004/15). The required breakdown of quarterly balance of payments statistics is presented in
Annex III, Table 2. Harmonised concepts and definitions used in the capital and financial accounts are set out in
Annex IV.

The breakdown of the quarterly current account is similar to the one required for the monthly figures. However,
for income a more detailed breakdown is needed on a quarterly basis.

In the financial account, the ECB follows the requirements of the fifth edition of the International Monetary Fund
(IMF) Balance of Payments Manual (hereinafter ‘the BPM5’) for the ‘other investment’ item. There is a difference in
the presentation of the breakdown (i.e. sector as first priority). This sectoral breakdown is however compatible with
the breakdown of the BPM5 where instruments have priority. As in the BPM5 presentation, currency and deposits
are distinguished from loans and other investments.

NCBs are required to distinguish in their quarterly balance of payments statistics between transactions with partici-
pating Member States and all other external transactions. As for the monthly data, a distinction between trans-
actions in securities issued by euro-area residents and securities issued by non-euro-area residents is required for
quarterly data in the area of portfolio investment. The statistics on net transactions in portfolio investment assets of
the euro area are compiled by aggregating reported net transactions in securities issued by non-euro-area residents.
Net transactions in portfolio investment liabilities of the euro area are compiled by consolidation of net transactions
in total national liabilities and net transactions in securities issued and purchased by euro-area residents.

An analogous reporting requirement and compilation method for the aggregate data are applied for portfolio
investment income.

For direct investment NCBs are required to submit quarterly an ‘MFIs (excluding central banks)/non-MFIs’ sectoral
breakdown. For ‘portfolio investment assets’ and ‘other investment’ the breakdown of reports according to institu-
tional sectors follows the standard components of the IMF comprising (i) monetary authorities, (ii) MFIs (excluding
central banks), (iii) general government and (iv) other sectors.

For compiling the statistics on euro-area net transactions in portfolio investment liabilities by sector of the euro-
area resident issuers, the requirements for quarterly data are similar to those for monthly balance of payments.

For the balance of payments of the euro area, accrued investment income data are required on a quarterly basis. In
line with the system of national accounts, the BPM5 recommends that interest should be recorded on an accruals
basis. This requirement affects the current account (investment income) as well as the financial account.

2.

International reserves template

O bj e c ti v e

The international reserves template is a monthly statement of the reserve assets, other foreign currency assets and
reserve-related liabilities held by NCBs and the ECB following the presentation of the joint IMF/Bank for Interna-
tional Settlements (BIS) template on ‘International Reserves and Foreign Currency Liquidity’. This information
complements the data on reserve assets included in the euro-area balance of payments and international investment
position statistics.

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R e q u i r e me n t s

Reserve assets of the euro area are highly liquid, marketable and creditworthy claims held by the ECB (‘pooled
reserves’) and by the NCBs (‘unpooled reserve assets’) on non-euro-area residents and denominated in foreign
currency (i.e. in currencies other than the euro), gold, reserve positions in the IMF and SDR holdings. They may
include positions in financial derivatives. Reserve assets are compiled on a gross basis without any netting out of
reserve-related liabilities. The breakdown of the data required from the NCBs is presented in Annex III, Table 3,
Section I.A.

Foreign currency-denominated assets of the Eurosystem which do not meet this definition, namely (i) claims on
euro-area residents and (ii) claims on non-euro-area residents which do not meet the liquidity, marketability and
creditworthiness criteria, are included under the ‘other foreign currency assets’ item of the international reserves
template (Annex III, Table 3, Section I.B).

Euro-denominated claims on non-residents and balances in foreign currency held by governments of participating
Member States are not considered as reserve assets; such amounts are recorded as ‘other investment’ if they repre-
sent claims on non-euro-area residents.

In addition, information on predetermined and contingent short-term net drains on the Eurosystem connected to
reserve assets and other foreign currency assets of the Eurosystem, the so-called ‘reserve-related liabilities’, is to be
reported under Annex III, Table 3, Sections II to IV.

3.

International investment position statistics

O bj e c ti v e

The international investment position is a statement of the external assets and liabilities of the euro area as a
whole, for monetary policy and exchange market analysis. In particular, it contributes to the assessment of the
Member States' external vulnerability and to monitoring the developments in holdings of liquid assets abroad by
the money holding sector. This statistical information is key to the compilation of the rest of the world account in
the euro-area quarterly financial accounts and may also assist in the compilation of balance of payments flows.

R e q u i r e me n t s

The ECB requires international investment position statistics on a quarterly and annual basis in respect of end-of-
period stock levels.

The international investment position data conform as far as possible to international standards (see Article 2(3) of
the Guideline ECB/2004/15). The ECB compiles the international investment position for the euro area as a whole.
The breakdown of the international investment position for the euro area is presented in Annex III, Table 4.

The international investment position shows financial stocks at the end of the reference period, valued at end-
period prices. Changes in the value of stocks could be due to the following factors. First, part of the change in the
value during the reference period will be due to the financial transactions that have taken place and been recorded
in the balance of payments. Secondly, part of the changes in positions at the beginning and at the end of a given
period will be caused by changes in the prices of the financial assets and liabilities shown. Thirdly, in the event that
stocks are denominated in currencies other than the unit of account used for the international investment position,
changes in the exchange rates vis-à-vis other currencies will also affect the values. Finally, any other change which
is not due to the above factors will be considered as due to ‘other adjustments’.

A proper reconciliation between the financial flows and stocks of the euro area requires changes in value owing to
price, to exchange-rate changes and to other adjustments to be distinguished.

Coverage of the international investment position should be as close as possible to that for quarterly balance of
payments flows. The concepts, definitions and breakdowns are in line with those used for quarterly balance of
payments flows. As far as possible, data on the international investment position should be consistent with other
statistics, such as money and banking statistics, financial accounts and national accounts.

As for the monthly and quarterly balance of payments, NCBs are required to distinguish in their international
investment position statistics between holdings vis-à-vis participating Member States and all other external posi-
tions. A distinction between holdings in securities issued by euro-area residents and in securities issued by non-
euro-area residents is required in the portfolio investment accounts. The statistics on net assets in portfolio invest-
ment of the euro area are compiled by aggregating reported net assets in securities issued by non-euro-area resi-
dents. Statistics on net liabilities in portfolio investment of the euro area are compiled by consolidation of net total
national liabilities and net holdings in securities issued and purchased by euro-area residents.

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NCBs are required to submit quarterly and annual holdings according to the same sectoral breakdown for ‘direct
investment’, ‘portfolio investment assets’ and ‘other investment’ as for quarterly balance of payments flows.

For the ECB's compiling of a sectoral breakdown of the euro area net liabilities in portfolio investment, the require-
ments imposed on NCBs regarding international investment position data are the same as for balance of payments
flows, subject to the provisions of Article 2(6) of Guideline ECB/2004/15.

Portfolio investment assets and liabilities within the international investment position are compiled purely from
stock data.

From the end of March 2008, NCBs (and other competent national statistical authorities where appropriate) collect,
as a minimum, quarterly portfolio investment stocks of assets and liabilities on a security-by-security basis
according to one of the models set out in the table contained in Annex VII.

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ANNEX III

REQUIRED BREAKDOWNS

Table 1

Monthly national contributions to the euro-area balance of payments (1)

Credit

Debit

Net

I.

Current account

Goods

Services

Income

Compensation of employees

Investment income

— direct investment

— portfolio investment

— other investment

Current transfers

II. Capital account

III. Financial account

Direct investment

Abroad

— Equity

(i) MFIs (excluding central banks)

(ii) Other sectors

— Reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

In the reporting economy

— Equity

(i) MFIs (excluding central banks)

(ii) Other sectors

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

Net assets

Net liabilities

extra

extra

extra

extra

national

extra

extra

extra

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

C 292/32

EN

Official Journal of the European Union

30.11.2004

— Reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

Portfolio investment (2)

Equity securities

(i) Monetary authorities

(ii) MFIs (excluding central banks)

(iii) Non-MFIs

Debt securities

— Bonds and notes

(i) Monetary authorities

(ii) MFIs (excluding central banks)

(iii) Non-MFIs

— Money market instruments

(i) Monetary authorities

(ii) MFIs (excluding central banks)

(iii) Non-MFIs

Financial derivatives

Other investment

Monetary authorities

General government

Of which:

Currency and deposits

MFIs (excluding central banks)

— Long-term

— Short-term

Other sectors

Of which:

Currency and deposits

Reserve assets

Net

extra

extra

extra

extra

extra

extra

national

extra

Net assets

Net liabilities

national

national

–

national

national

national

national

–

national

national

national

–

national

national

extra

extra

extra

extra

extra

extra

extra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

(1)

‘extra’

— means transactions with non-euro-area residents (for portfolio investment assets and related income it refers to the

residency of the issuers)

‘intra’
‘national’ — means all cross-border transactions by residents of a participating Member State (used only in connection with liabil-

— means transactions between different Member States of the euro area

ities on portfolio investment accounts and the net balance of the financial derivatives accounts)
(2) Breakdown by sectors based on (i) euro-area holders in the case of extra euro-area portfolio investment assets and (ii) euro-area

issuers in the case of intra-euro-area portfolio investment assets and portfolio investment liabilities.

30.11.2004

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Official Journal of the European Union

C 292/33

Quarterly national contributions to the euro-area balance of payments (1)

Table 2

Credit

Debit

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

Net assets

Net liabilities

I.

Current account

Goods

Services

Income

Compensation of employees

Investment income

— Direct investment

— Income on equity

— Income on debt (interest)

— Portfolio investment

— Income on equity (dividends)

— Income on debt (interest)

— Bonds and notes

— Money market instruments

— Other investment

Current transfers

II. Capital account

III. Financial account

Direct investment

Abroad

— Equity

(i) MFIs (excluding central banks)

(ii) Other sectors

— Reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

In the reporting economy

— Equity

(i) MFIs (excluding central banks)

(ii) Other sectors

— Reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

Net

extra

extra

extra

extra

extra

extra

national

national

national

national

national

extra

extra

extra

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

C 292/34

EN

Official Journal of the European Union

30.11.2004

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

Portfolio investment (2)

Equity securities

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

Debt securities

— Bonds and notes

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

— Money market instruments

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

Financial derivatives

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

Other investment

(i) Monetary authorities

— Loans/currency and deposits

— Other assets/liabilities

(ii) General government

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

(iii) MFIs (excluding central banks)

— Loans/currency and deposits

— Other assets/liabilities

Net

extra

extra

extra

national

national

national

national

national

extra

Net assets

Net liabilities

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

national

national

–

–

national

national

national

national

national

national

national

national

national

national

national

national

national

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

30.11.2004

EN

Official Journal of the European Union

C 292/35

Net assets

Net liabilities

Net

extra

extra

extra

extra

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

Reserve assets

Monetary gold

SDRs

Reserve position in the International Monetary
Fund (IMF)

Foreign exchange

— Currency and deposits

— With monetary authorities

— With MFIs (excluding central banks)

— Securities

— Equities

— Bonds and notes

— Money market instruments

— Financial derivatives

Other claims

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

(1)

‘extra’

— means transactions with non-euro-area residents (for portfolio investment assets and related income it refers to the

residency of the issuers)

‘intra’
‘national’ — means all cross-border transactions by residents of a participating Member State (used only in connection with liabil-

— means transactions between different Member States of the euro area

ities on portfolio investment accounts and the net balance of the financial derivatives accounts)
(2) Breakdown by sectors based on (i) euro-area holders in the case of extra euro-area portfolio investment assets and (ii) euro-area

issuers in the case of intra-euro-area portfolio investment assets and portfolio investment liabilities.

Monthly international reserves of the Eurosystem; reserve-related liabilities of the euro area

Table 3

I. Official reserve assets and other foreign currency assets (approximate market value)

A Official reserve assets

1. Foreign currency reserves (in convertible foreign currencies)

(a) Securities, of which:

— issuer headquartered in the euro area

(b) total currency and deposits with

(i) other NCBs, Bank for International Settlements (BIS) and IMF

(ii) banks headquartered in the euro area and located abroad

(iii) banks headquartered and located outside the euro area

2. IMF reserve position

3. SDRs

4. gold (including gold deposits and gold swaps)

C 292/36

EN

Official Journal of the European Union

30.11.2004

5. other reserve assets

(a) financial derivatives

(b) loans to non-bank non-residents

(c) other

B Other foreign currency assets

(a) securities not included in official reserve assets

(b) deposits not included in official reserve assets

(c) loans not included in official reserve assets

(d) financial derivatives not included in official reserve assets

(e) gold not included in official reserve assets

(f) other

II. Predetermined short-term net drains on foreign currency assets (nominal value)

Maturity breakdown (residual maturity, where
applicable)

Total

Up to one
month

More than
one month and
up to three
months

More than
three months
and up to one
year

1.

Foreign currency loans,
deposits

securities and

— outflows (-)

Principal

Interest

— inflows (+)

Principal

Interest

2. Aggregate short and long positions in
forwards and futures in foreign currencies
vis-à-vis the domestic currency (including
the forward leg of currency swaps)

(a) Short positions (-)

(b) Long positions (+)

3. Other (specify)

— outflows related to repos (-)

— inflows related to reverse repos (+)

— trade credits (-)

— trade credits (+)

— other accounts payable (-)

— other accounts receivable (+)

30.11.2004

EN

Official Journal of the European Union

C 292/37

III. Contingent short-term net drains on foreign currency assets (nominal value)

Maturity breakdown (residual maturity, where
applicable)

Total

Up to one
month

More than
one month and
up to three
months

More than
three months
and up to one
year

1.

Contingent liabilities in foreign currency

(a) Collateral guarantees on debt falling due

within one year

(b) Other contingent liabilities

2.

Foreign
embedded options (puttable bonds)

securities

currency

issued with

3.1. Undrawn, unconditional credit lines provided

by:

(a) other national monetary authorities, BIS,
IMF and other international organisations

— other national monetary authorities

(+)

— BIS (+)

— IMF (+)

(b) banks and other

institutions
headquartered in the reporting country
(+)

financial

(c) banks and other
headquartered
country (+)

financial
the

outside

institutions
reporting

3.2. Undrawn, unconditional credit lines provided

to:

(a) other national monetary authorities, BIS,
IMF and other international organisations

— other national monetary authorities

(-)

— BIS (-)

— IMF (-)

(b) banks and other

institutions
headquartered in the reporting country (-)

financial

(c) banks and other
headquartered
country (-)

financial
the

outside

institutions
reporting

4. Aggregate short and long positions of options
in foreign currencies vis-à-vis the domestic
currency

(a) Short positions

(i) bought puts

(ii) written calls

(b) Long positions

(i) bought calls

(ii) written puts

C 292/38

EN

Official Journal of the European Union

30.11.2004

Maturity breakdown (residual maturity, where
applicable)

Total

Up to one
month

More than
one month and
up to three
months

More than
three months
and up to one
year

PRO MEMORIA: in-the-money options

1. At current exchange rates

(a)

(b)

short position

long position

2. + 5 % (depreciation of 5 %)

(a)

(b)

short position

long position

3.

- 5 % (appreciation of 5 %)

(a)

(b)

short position

long position

4. + 10 % (depreciation of 10 %)

(a)

(b)

short position

long position

5.

- 10 % (appreciation of 10 %)

(a)

(b)

short position

long position

6. Other (specify)

(a)

(b)

short position

long position

IV. Memo items

1. To be reported with standard periodicity and timeliness:

(a) short-term domestic currency debt indexed to foreign exchange rates

(b) financial
currency)

instruments denominated in foreign currency and settled by other means (e.g.

in domestic

— non-deliverable forwards

(i) short positions

(ii) long positions

— other instruments

(c) pledged assets

— included in reserve assets

— included in other foreign currency assets

(d) securities lent and on repo

— lent or repoed and included in Section I

— lent or repoed but not included in Section I

— borrowed or acquired and included in Section I

— borrowed or acquired but not included in Section I

(e) financial derivative assets (net, marked to market)

— forwards

— futures

— swaps

— options

— other

30.11.2004

EN

Official Journal of the European Union

C 292/39

(f) derivatives (forward, futures or options contracts) that have a residual maturity greater than one year, which

are subject to margin calls

— aggregate short and long positions in forwards and futures in foreign currencies vis-à-vis the domestic

currency (including the forward leg of currency swaps)

(i) short positions

(ii) long positions

— aggregate short and long positions of options in foreign currencies vis-à-vis the domestic currency

(i) short positions

— bought puts

— written calls

(ii) long positions

— bought calls

— written puts

2. To be disclosed less frequently (e.g. once a year):

(a) currency composition of reserves (by groups of currencies)

— currencies in SDR basket

— currencies not included in SDR basket

Table 4

Quarterly national contributions to the euro-area international investment position (1)

I.

Direct investment

Abroad

— Equity and reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

In the reporting economy

— Equity and reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

II.

Portfolio investment (2)

Equity securities

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

Assets

Liabilities

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra

extra

extra

extra

extra

extra

extra

national

–

–

national

national

C 292/40

EN

Official Journal of the European Union

30.11.2004

Assets

Liabilities

Net

extra

extra

extra

extra

extra

extra

national

national

national

national

national

national

national

national

national

national

national

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

Debt securities

— Bonds and notes

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

— Money market instruments

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

III. Financial derivatives

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

IV. Other investment

(i) Monetary authorities

— Loans/currency and deposits

— Other assets/liabilities

(ii) General government

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

(iii) MFIs (excluding central banks)

— Loans/currency and deposits

— Other assets/liabilities

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

V. Reserve assets

Monetary gold

SDRs

Reserve position in the IMF

Foreign exchange

— Currency and deposits

— With monetary authorities

— With MFIs (excluding central banks)

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

30.11.2004

EN

Official Journal of the European Union

C 292/41

Assets

Liabilities

Net

— Securities

— Equities

— Bonds and notes

— Money market instruments

— Financial derivatives

Other claims

extra

extra

extra

extra

extra

extra

(1)

‘extra’

— means positions with non-euro-area residents (for portfolio investment assets, it refers to the residency of the

issuers)

‘intra’
‘national’ — means all cross-border positions by residents of a participating Member State (used only in connection with

— means positions between different Member States of the euro area

liabilities on portfolio investment accounts and the net balance of the financial derivatives accounts)

(2) Breakdown by sectors based on (i) euro-area holders in the case of extra euro-area portfolio investment assets and (ii) euro-area

issuers in the case of intra-euro-area portfolio investment assets and portfolio investment liabilities.

Annual national contributions to the euro-area international investment position (1)

Table 5

I.

Direct investment

Abroad

— Equity and reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

Of which:

Equity stocks in foreign listed companies
(market values)

Equity stocks in foreign unlisted companies
(book values)

Memorandum item:

Equity stocks in foreign listed companies
(book values)

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

In the reporting economy

— Equity and reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

Assets

Liabilities

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

C 292/42

EN

Official Journal of the European Union

30.11.2004

Assets

Liabilities

Net

Of which:

Equity stocks in euro-area listed companies
(market values)

Equity stocks in euro-area unlisted compa-
nies (book values)

Memorandum item:

Equity stocks in euro-area listed companies
(book values)

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

II.

Portfolio investment (2)

Equity securities

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

Debt securities

— Bonds and notes

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

— Money market instruments

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

III. Financial derivatives

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

IV. Other investment

(i) Monetary authorities

— Loans/currency and deposits

— Other assets/liabilities

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra/intra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

national

–

–

national

national

national

national

national

national

national

national

national

national

national

national

national

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

30.11.2004

EN

Official Journal of the European Union

C 292/43

Assets

Liabilities

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

(ii) General government

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

(iii) MFIs (excluding central banks)

— Loans/currency and deposits

— Other assets/liabilities

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

V. Reserve assets

Monetary gold

SDRs

Reserve position in the IMF

Foreign exchange

— Currency and deposits

— With monetary authorities

— With MFIs (excluding central banks)

— Securities

— Equities

— Bonds and notes

— Money market instruments

— Financial derivatives

Other claims

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

(1)

‘extra’

— means positions with non-euro-area residents (for portfolio investment assets,

it refers to the residency of the

issuers)

‘intra’
‘national’ — means all cross-border positions by residents of a participating Member State (used only in connection with liabilities

— means positions between different Member States of the euro area

on portfolio investment accounts and the net balance of the financial derivatives accounts)

(2) Breakdown by sectors based on (i) euro-area holders in the case of extra euro-area portfolio investment assets and (ii) euro-area

issuers in the case of intra-euro-area portfolio investment assets and portfolio investment liabilities.

C 292/44

EN

Official Journal of the European Union

30.11.2004

Statistics on debt securities for the analysis of the international role of the euro as an investment currency (1)

Table 6

Transactions in the first/last six months of the year

Debt securities

— Bonds and notes

— Money market instruments

Assets

extra/intra

extra/intra

extra/intra

Positions as at end of June/end of December

Debt securities

— Bonds and notes

— Money market instruments

Assets

extra/intra

extra/intra

extra/intra

Transactions in the first/last six months of the year

Debt securities

— Bonds and notes

— Money market instruments

Debt securities

— Bonds and notes

— Money market instruments

Assets

extra/intra

extra/intra

extra/intra

Positions as at end of June/end December

Assets

extra/intra

extra/intra

extra/intra

Transactions in the first/last six months of the year

Debt securities

— Bonds and notes

— Money market instruments

Assets

extra/intra

extra/intra

extra/intra

Positions as at end of June/end of December

Debt securities

— Bonds and notes

— Money market instruments

Assets

extra/intra

extra/intra

extra/intra

Liabilities

national

national

national

Liabilities

national

national

national

Liabilities

national

national

national

Liabilities

national

national

national

Liabilities

national

national

national

Liabilities

national

national

national

o
r
u
E

r
a
l
l

o
D
S
U

s
e
i
c
n
e
r
r
u
c

r
e
h
t
O

(1)

‘extra’

— means transactions/positions with non-euro-area residents (for portfolio investment assets and related income it

refers to the residency of the issuers)

‘intra’
‘national’ — means all cross-border transactions/positions by/of residents of a participating Member State (used only in connec-

— means transactions/positions between different Member States of the euro area

tion with liabilities on portfolio investment accounts and the net balance of the financial derivatives accounts)

30.11.2004

EN

Official Journal of the European Union

C 292/45

Quarterly national contributions to the euro-area balance of payments with geographical breakdown (1)

Table 7

Credit

Debit

Net

I.

Current account

Goods

Services

Income

Compensation of employees

Investment income

— Direct investment

— Portfolio investment

— Other investment

Current transfers

II. Capital account

III. Financial account

Direct investment

Abroad

— Equity

— Reinvested earnings

— Other capital

In the reporting economy

— Equity

— Reinvested earnings

— Other capital

— Portfolio investment

Equity securities

Debt securities

— Bonds and notes

— Money market instruments

Financial derivatives

Other investment

(i) Monetary authorities

(ii) General government

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

(iii) MFIs (excluding central banks)

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

Reserve assets

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Net

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Net assets

Net liabilities

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

(1) Step-3 refers to the geographical breakdown as detailed in Table 9.

C 292/46

EN

Official Journal of the European Union

30.11.2004

Annual national contributions to the euro-area international investment position with geographical break-
down (1)

Table 8

Assets

Liabilities

Net

I.

Direct investment

Abroad

— Equity and reinvested earnings

— Other capital

In the reporting economy

— Equity and reinvested earnings

— Other capital

II.

Portfolio investment

Equity securities

Debt securities

— Bonds and notes

— Money market instruments

III. Financial derivatives

IV. Other investment

(i) Monetary authorities

(ii) General government

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

(iii) MFIs (excluding central banks)

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

V. Reserve assets

(1) Step-3 refers to the geographical breakdown as detailed in Table 9.

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

30.11.2004

EN

Official Journal of the European Union

C 292/47

ECB geographical breakdowns for quarterly balance of payments flows and annual international investment
position data

Table 9

— Denmark

— Sweden

— United Kingdom

— EU institutions (1)

— Other EU Member States (i.e. the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,

Slovenia and Slovakia) (2)

— Switzerland

— Canada

— United States

— Japan

— Offshore centres (3)

— International organisations excluding the EU institutions (4)

— Residual (5)

(1) See composition in TABLE 12. No individual breakdown is required
(2) No individual breakdown is required.
(3) Only mandatory for the balance of payments financial account, the related income accounts and the international investment posi-
tion. Current account (excluding income) flows vis-à-vis offshore centres may be reported either separately or indistinguishably under
the residual item category. See composition in TABLE 11. No individual breakdown is required

(4) See composition in TABLE 12. No individual breakdown is required.
(5) Calculated as residual (excluding from the total national contribution to the euro-area balance of payments/international investment

position item the amounts corresponding to the above-listed counterparts).

Territories forming part of, or countries associated with, euro-area Member States

Table 10

Territories forming part of the euro area:

— Helgoland: Germany

— Canary Islands, Ceuta and Melilla: Spain

— Monaco, Guyana, Guadeloupe, Martinique, Réunion, Saint Pierre and Miquelon, Mayotte: France

— Madeira, the Azores: Portugal

— The Åland Islands: Finland

Territories associated with euro-area Member States to be included in the RoW:

— Büsingen (not Germany)

— Andorra (neither Spain nor France)

— The Netherlands Antilles and Aruba (not the Netherlands)

— French Polynesia, New Caledonia and the Wallis and Futuna Islands (not France)

— San Marino and the Vatican City (not Italy)

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List of offshore centres for the ECB geographical breakdown for quarterly balance of payments flows and
annual international investment position data

Table 11

ISO codes

AD

AG

AI

AN

BB

BH

BM

BS

BZ

CK

DM

GD

GG

GI

HK

IM

JE

JM

KN

KY

LB

LC

LI

LR

MH

MS

MV

NR

NU

PA

PH

SG

TC

VC

VG

VI

VU

WS

Eurostat + OECD
Offshore financial centers

Andorra

Antigua and Barbuda

Anguilla

Netherlands Antilles

Barbados

Bahrain

Bermuda

Bahamas

Belize

Cook Islands

Dominica

Grenada

Guernsey

Gibraltar

Hong Kong

Isle of Man

Jersey

Jamaica

Saint Kitts and Nevis

CaymanIslands

Lebanon

Saint Lucia

Liechtenstein

Liberia

Marshall Islands

Montserrat

Maldives

Nauru

Niue

Panama

Philippines

Singapore

Turks and Caicos Islands

Saint Vincent and the Grenadines

Virgin Islands, British

Virgin Islands, U.S:

Vanuatu

Samoa

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List of international organisations (1) for the ECB geographical breakdown for quarterly balance of payments
flows and annual international investment position data

Table 12

1.

European Union institutions

1.1. Major European Union institutions, organs and organisms (excluding the ECB)

EIB (European Investment Bank)

EC (European Commission)

EDF (European Development Fund)

EIF (European Investment Fund)

1.2. Other European Union institutions, organs and organisms covered by the general budget

European Parliament

Council of the European Union

Court of Justice

Court of Auditors

European Economic and Social Committee

Committee of the Regions

Other European Union institutions, organs and organisms

2.

International organisations

2.1.

International monetary organisations

IMF (International Monetary Fund)

BIS (Bank for International Settlements)

2.2.

International non-monetary organisations

2.2.1. Ma j or U n i te d Na ti on s or g a ni sa ti on s

WTO (World Trade Organisation)

IBRD (International Bank for Reconstruction and Development)

IDA (International Development Association)

2.2.2. O the r U n i te d Na ti on s or g a ni sa ti on s

Unesco (United Nations Educational, Scientific and Cultural Organisation)

FAO (Food and Agriculture Organisation)

WHO (World Health Organisation)

IFAD (International Fund for Agricultural Development)

IFC (International Finance Corporation)

MIGA (Multilateral Investment Guarantee Agency)

Unicef (United Nations Children's Fund)

UNHCR (United Nations High Commissioner for Refugees)

UNRWA (United Nations Relief and Works Agency for Palestine)

IAEA (International Atomic Energy Agency)

ILO (International Labour Organisation)

ITU (International Telecommunication Union)

(1) Based on the European Commission (Eurostat) balance of payment vademecum.

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2.2.3. O the r m a j or i n te r na ti ona l i n sti tu ti on s, or g a ns a nd org a ni sms (e xc lu di n g the E CB )

OECD (Organisation for Economic Cooperation and Development)

IADB (Inter-American Development Bank)

AfDB (African Development Bank)

AsDB (Asian Development Bank)

EBRD (European Bank for Reconstruction and Development)

IIC (Inter-American Investment Corporation)

NIB (Nordic Investment Bank)

IBEC (International Bank for Economic Cooperation)

IIB (International Investment Bank)

CDB (Caribbean Development Bank)

AMF (Arab Monetary Fund)

BADEA (Banque arabe pour le développement économique en Afrique)

CASDB (Central African States Development Bank)

African Development Fund

Asian Development Fund

Fonds spécial unifié de développement

CABEI (Central American Bank for Economic Integration)

ADC (Andean Development Corporation)

2.2.4. O the r i nte r na ti ona l or g a ni sa ti ons

NATO (North Atlantic Treaty Organisation)

Council of Europe

ICRC (International Committee of the Red Cross)

ESA (European Space Agency)

EPO (European Patent Office)

Eurocontrol (European Organisation for the Safety of Air Navigation)

EUTELSAT (European Telecommunications Satellite Organisation)

INTELSAT (International Telecommunications Satellite Organisation)

EBU/UER (European Broadcasting Union/Union européenne de radio-télévision)

EUMETSAT (European Organisation for the Exploitation of Meteorological Satellites)

ESO (European Southern Observatory)

ECMWF (European Centre for Medium-range Weather Forecasts)

EMBL (European Molecular Biology Laboratory)

CERN (European Organisation for Nuclear Research)

IOM (International Organisation for Migration)

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Table 13

Summary of requirements and deadlines

Item

First reference period(s)

First transmission/deadline

Geographical breakdown (except other invest-
ment instruments)

Relevant provision(s) of present
recommendation and Guideline
ECB/2004/15

GUI Article 2(4), REC Annex
IV Section 2

Quarterly b.o.p.

Annual i.i.p.

Q1 2003 to Q1 2004

End of June 2004

REC Annex III, Table 7

2002 and 2003

End of September 2004

REC Annex III, Table 8

Geographical breakdown for other investment
instruments

GUI Article 2(4), REC Annex
IV Section 2

Quarterly b.o.p.

Annual i.i.p.

Quarterly i.i.p.

Portfolio investment s-b-s

Quarterly i.i.p.

Annual i.i.p.

Q1 2004 to Q2 2005

End of September 2005

REC Annex III, Table 7

2003 and 2004

End of September 2005

REC Annex III, Table 8

Q4 2003 to Q3 2004

End of December 2004

GUI Article 3(4)

Q4 2007 position

End of March 2008

GUI Article 2(6)

2007

End of September 2008

GUI Article 2(6)

Portfolio investment
down by issuer sector

(intra)

assets broken

GUI Article 2(3)

Monthly b.o.p.

Quarterly b.o.p.

Quarterly i.i.p.

Annual i.i.p.

January to April 2006

June 2006

REC Annex III,Table 1

Q1 2006

End of June 2006

REC Annex III, Table 2

Q4 2005 and Q1 2006

End of June 2006

REC Annex III, Tables 4 and
5

2005

End of September 2006

REC Annex III, Tables 4-5

FDI additional breakdowns by valuation of equity
stocks

Annual i.i.p.

2004 and 2005

End of September 2006

REC Annex IV, Section 1.3

REC Annex III, Table 5 and
Annex IV, Table 1

Split loans/deposits

Monthly b.o.p.

Quarterly b.o.p.

Quarterly i.i.p.

Annual i.i.p.

January and February 2004

April 2004

REC Annex III, Table 1

Q1 2004

End of June 2004

REC Annex III, Table 2

Q4 2003 to Q3 2004

End of December 2004

REC Annex III, Table 4

2003

End of September 2004

REC Annex III, Table 5

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Item

First reference period(s)

First transmission/deadline

Currency breakdown on debt securities (EUR/
non-EUR)

Relevant provision(s) of present
recommendation and Guideline
ECB/2004/15

GUI Article 3(6)

Six-month transactions

July to December 2004

Positions end of June/end of December

2004

End of June 2005

End of June 2005

REC Annex III, Table 6

REC Annex III, Table 6

Currency breakdown on debt securities (EUR/
USD/other currencies)

GUI Article 3(6)

Six-month transactions

July to December 2007

Positions end of June/end of December

2007

End of June 2008

End of June 2008

REC Annex III, Table 6

REC Annex III, Table 6

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ANNEX IV

CONCEPTS AND DEFINITIONS TO BE USED IN THE BALANCE OF PAYMENTS AND INTERNATIONAL
INVESTMENT POSITION STATISTICS, AND THE INTERNATIONAL RESERVES TEMPLATE

In order to construct meaningful aggregated external statistics for the euro area, concepts and definitions have been
defined in the field of balance of payments statistics (income, capital and financial accounts), international investment
position statistics and the international reserves template. These concepts and definitions are based on the ‘Implementa-
tion Package’ (July 1996) and additional documents endorsed by the Governing Council of the European Central Bank
(ECB). Current international standards, such as the fifth edition of the International Monetary Fund (IMF) Balance of
Payments Manual (hereinafter ‘the BPM5’) and the IMF/Bank for International Settlements template on International
Reserves and Foreign Currency Liquidity, have been used as a reference in formulating these concepts and definitions.
The most important harmonisation proposals are listed below in line with the ECB's methodological notes on ‘Balance
of payments and international investment position of the euro area (including reserves)’ published on its website at
http://www.ecb.int. Further guidance is available in Chapters 2 and 3 of the ECB's publication European Union balance
of payments/international investment position statistical methods (hereinafter ‘the B.o.p. book’) which is revised annually
and is available both on the website and in hard copy.

1. Concepts and definitions of selected items

1.1. Investment income (see also B.o.p. book, Section 3.4)

Investment income incorporates income derived from a euro-area resident's ownership of a non-euro-area financial
asset (credits) and, symmetrically, income derived from a non-euro-area resident's ownership of a euro-area financial
asset (debits). Where they are separately identifiable, gains and losses on (capital) holdings are not classified as
income on investments, but as changes in the value of the investments due to market price developments.

Investment income includes income generated by direct investment, portfolio investment and other investment and
by the Eurosystem's reserve assets. However, net flows associated with interest-rate derivatives are recorded under
‘financial derivatives’ in the financial account. Reinvested earnings are recorded under ‘direct investment income’.
They are defined as the direct investor's share of the total consolidated profits earned by the direct investment
enterprise in the given reference period (after allowing for tax, interest and depreciation) less dividends due for
payment in the reference period, even if these dividends relate to profits earned in previous periods.

The requirements for monthly and quarterly balance of payments data are almost identical to IMF Standard Compo-
nents as defined in the BPM5. The main difference is that the ECB does not require a breakdown of direct invest-
ment income on equity into distributed and undistributed profits.

Interest income is recorded on an accruals basis (this is not required for the monthly data). Dividends are recorded
as of the date on which they become payable. Reinvested earnings are to be recorded in the period in which they
are earned.

1.2. Capital account (see also B.o.p. book, Section, 3.6)

The capital account covers capital transfers and the acquisition/disposal of non-produced non-financial assets.
Current transfers are to be recorded in the current account. Capital transfers consist of (i) transfers of ownership of
fixed assets, (ii) transfers of funds linked to, or conditional upon, the acquisition or disposal of fixed assets and
(iii) the cancellation, without any consideration being received in return, of liabilities by creditors. Capital transfers
may be in cash or in kind (such as debt forgiveness). The distinction between current and capital transfers, in prac-
tice, rests in the use of the transfer by the recipient country. Acquisition/disposal of non-produced non-financial
assets covers mainly intangibles such as patents, leases or other transferable contracts. Only the purchase/sale of
such assets, but not their use, is to be recorded in this item of the capital account.

While the IMF's standard components of the capital account consist of a sectoral breakdown into the items ‘general
government’ and ‘other sectors’ (with a further breakdown thereafter), the ECB compiles only a lump-sum capital
account, without any breakdown.

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1.3. Direct investment (see also B.o.p. book, Section 3.7)

Direct investment is a category of international investment that reflects the objective of an entity resident in one
economy to obtain a lasting interest in an enterprise resident in another economy. In line with international stan-
dards (IMF), the ‘10 % ownership criterion’ is applied in order to infer the existence of a direct investment relation-
ship, i.e. a lasting interest in the case of the euro-area balance of payments/international investment position. Based
on this criterion, a direct investment relationship can exist between a number of related enterprises, regardless of
whether the linkage involves a single chain or a number of chains. It can extend to a direct investment enterprise's
subsidiaries, sub-subsidiaries and associates. Once the direct investment is established, all subsequent financial
flows/holdings between/vis-à-vis the related entities are recorded as direct investment transactions/positions (1).

Following the IMF standards and Eurostat/OECD guidelines, direct investment relationships of the euro area are
recorded using the directional principle, implying that the financial transactions between the euro-area resident
direct investor and the non-euro-area direct investment enterprises are classified as ‘direct investment abroad’.
Symmetrically, the financial transactions between resident direct investment enterprises and non-euro-area direct
investors are classified under the ‘direct investment in the reporting economy’ item of the euro-area balance of
payments.

The components of direct investment are equity capital, reinvested earnings and ‘other capital’ associated with
various inter-company debt operations. Equity capital comprises equity in branches as well as all shares in subsidi-
aries and associates. Reinvested earnings consist of the offsetting entry to the direct investor's share of earnings not
distributed as dividends by subsidiaries or associates and earnings of branches not remitted to the direct investor
and which are recorded under ‘investment income’. ‘Other capital’ covers all financial operations between affiliated
companies (borrowing and lending of funds) — including debt securities and suppliers' credits (i.e. trade credits) —
between direct investors and subsidiaries, branches and associates.

With regard to the valuation of direct investment stocks, the internationally recommended approach is to use
market prices. This approach is applied to the valuation of equity stocks in the case of direct investment companies
listed in stock exchanges. Conversely, in the case of unlisted direct investment companies, equity stocks are valued
on the basis of book values using a common definition comprising the following accounting items:

(i) paid-up capital (excluding own shares and including shares premium accounts);

(ii) all types of reserves (including investment grants when accounting guidelines consider them as company's

reserves);

(iii) non-distributed profits net of losses (including results for the current year).

As memorandum items, the book values of equity stocks in listed direct investment companies are also required
using the same common definition.

The work of the joint ECB/Commission (Eurostat) Task Force on Foreign Direct Investment led to some recommen-
dations aimed at harmonising methodology and practices across Member States. TABLE 1 summarises the main
recommendations.

1.4. Portfolio investment (see also B.o.p. book, Section 3.8)

The euro-area portfolio investment account includes (i) equity securities and (ii) debt securities in the form of bonds
and notes and money market instruments, unless they are categorised either as direct investment or as reserve
assets. Financial derivatives as well as repurchase agreements and securities lending are excluded from portfolio
investment.

The ‘equity securities’ item covers all instruments representing claims on the residual value of incorporated enter-
prises after the claims of all creditors have been met. Stocks, shares, preference stocks or shares, participation certi-
ficates or similar documents denote ownership of equity. Transactions/holdings 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.

Unlike bonds and notes, 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 organised markets; the discount is dependent upon the
interest rate and the time remaining to maturity.

The report by the Task Force on Portfolio Investment Data Collection Systems was followed by national feasibility
studies concerning the possibility of data collection on a security-by-security basis euro-area-wide. These studies
were carried out by the then 15 European Union Member States and concluded with an agreement to collect, as a
minimum, quarterly portfolio investment stocks in the euro area on a security-by-security basis. This agreement
established four valid models for the compilation of portfolio investment statistics, as presented in the table
contained in Annex VII.

(1) Exceptions relate to transactions/positions in financial derivatives between affiliates for which recording under the category ‘financial

derivatives’ rather than under ‘direct investment/other capital’ was agreed at the euro-area level.

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For the sectoral breakdown of the euro-area net liabilities in portfolio investment, the requirements regarding inter-
national investment position data are the same as for balance of payments flows.

The recording of portfolio investment transactions in the euro-area balance of payments takes place when the euro-
area creditors or debtors enter the claim or liability in their books. Transactions are recorded at the effective price
received or paid, less commission and expenses. Thus, 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; in the monthly balance of payments the same treat-
ment is encouraged; these recordings in the quarterly (and monthly) financial account need to have offsetting
entries in the respective income account.

1.5. Financial derivatives (see also B.o.p. book, Section 3.9)

Financial derivatives are financial
indicator or
commodity, and through which specific financial risks can be traded in financial markets in their own right. Trans-
actions 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.

instruments that are linked to a specific financial

instrument,

Transactions and positions in options, futures, swaps, forward foreign exchange contracts, credit derivatives and
embedded derivatives are recorded in the balance of payments, international reserves and international investment
position. For practical reasons, embedded derivatives are not distinguished from the underlying instrument to
which they are linked.

Net flows associated with interest-rate derivatives are recorded as financial derivatives, not as investment income, in
line with recent international agreement. The classification of specific instruments of credit derivatives should be
decided on a case-by-case basis.

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’. Futures-style variation margin payments are regarded, in principle, as transactions in deri-
vatives and should be recorded under ‘financial derivatives’.

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.

The recording of transactions in financial derivatives takes place when the euro-area creditors and debtors enter the
claim or liability in their books. Owing to practical problems involved in separating the asset and liability flows for
some derivative instruments, all financial derivatives transactions in the euro-area balance of payments are recorded
net. 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.

1.6. Other investment (see also B.o.p. book, Section 3.10)

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 encom-
passes the offsetting entries for accrued income on instruments classified under other investment.

Trade credits consist of claims or liabilities arising from the direct extension of credit by euro-area suppliers or
buyers respectively for transactions in goods and services and advance payments for work in progress (or to be
undertaken) that is associated with such transactions.

Loans/currency and deposits comprise transactions/holdings in the following financial instruments: loans, i.e. finan-
cial assets created through the direct lending of funds by a creditor (lender) to a debtor (borrower) through an
arrangement in which the lender either receives no security or receives a non-negotiable document or instrument,
repo-type operations, currency and deposits. This includes,
loans to finance trade, other loans and
advances (including mortgages) and financial leases. The distinction between ‘loans’ and ‘currency and deposits’ is
based on the nature of the borrower. This implies that, on the assets side, money granted by the euro-area money-
holding sector to non-euro-area banks is to be classified as ‘deposits’ and money granted by the euro-area money-
holding sector to non-euro-area non-banks (i.e. institutional units other than banks) is to be classified as ‘loans’. On
the liabilities side, money taken by euro-area non-banks (i.e. non-MFIs) is always to be classified as ‘loans’. Finally,
this distinction implies that all transactions involving euro-area MFIs and foreign banks are to be classified as
‘deposits’.

inter alia,

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All repo-type operations, i.e. repurchase agreements, sell/buy-back operations and securities lending (with exchange
of cash as collateral), are treated in the euro-area balance of payments/international investment position as collatera-
lised loans, not as outright purchases/sales of securities, and are recorded under ‘other investment’, within the euro-
area resident sector that carries out the operation. This treatment, which is also in line with the accounting practice
of banks and other financial corporations, is intended to better reflect the economic rationale behind these financial
instruments.

Other assets/other liabilities covers all items other than trade credits, loans and currency and deposits.

The euro-area sector ‘Eurosystem’ in ‘other investment’ includes net positions of the Eurosystem with the national
central banks (NCBs) of non-participating Member States related to the operation of the TARGET system. These
intra-European System of Central Banks (ESCB) balances/accounts, which are denominated in euro, are similar to
movements of the monetary financial institutions' (MFIs') nostro/vostro accounts and, thus, reported to the ECB on
a net basis under liabilities.

The principles of ‘transfer of ownership’, ‘time of settlement’ and ‘time of payment’ all conform to the IMF stan-
dards.

Compared with BPM5 standard components, there is a difference in the presentation of the breakdown (i.e. sector
as first priority). This sectoral breakdown is however compatible with the breakdown of the BPM5 where instru-
ments have priority. For the monthly balance of payments data, a distinction between short-term and long-term
flows in the MFI sector is required. As in the BPM5 presentation, currency and deposits are distinguished from
loans and other investments.

1.7. Reserve assets (see also B.o.p. book, Section 3.11)

The reserve assets of the euro area consist of the Eurosystem's reserve assets, i.e. the ECB's and the NCBs' reserve
assets.

Reserve assets must (i) be under the effective control of the relevant monetary authority of the Eurosystem or an
NCB and (ii) be highly liquid, marketable and creditworthy claims held by the Eurosystem on non-euro-area resi-
dents denominated in currencies other than the euro, gold, reserve positions in the IMF or special drawing rights
(SDRs).

This definition expressly excludes foreign currency claims on residents of the euro area, and euro claims on non-
residents of the euro area, from being considered to be reserve assets either at the national or at the euro-area level.
Likewise, foreign exchange positions of central governments and/or the Treasury are not included in the definition
of reserve assets for the euro area in accordance with the institutional arrangements in the Treaty establishing the
European Community.

Reserve assets of the ECB are those assets which are pooled in accordance with Article 30 of the Statute of the
ESCB and thus considered to be under the direct and effective control of the ECB. As long as no further transfer of
ownership takes place, reserve assets retained by the NCBs are under their direct and effective control and are
treated as reserve assets of each individual NCB.

The presentation of the Eurosystem's international reserves transactions shows a total figure for monthly transac-
tions. Additional details of Eurosystem transactions in gold, foreign exchange, holdings of SDRs and reserve posi-
tion in the IMF are available quarterly following BPM5 standard components. A separate category for financial deri-
vatives is presented, in line with the recent IMF recommendation in this field.

The Eurosystem's reserves are compiled on a gross basis without any netting-off of reserve-related liabilities (with
the exception of those reserve assets included in the subcategory ‘financial derivatives’, which are recorded on a net
basis).

The valuation is based on market prices by using (i) for transactions, the prevailing market prices at the time when
the transaction takes place and (ii) for holdings, the closing mid-market prices at the end of the appropriate period.
Prevailing market exchange rates at the time when the transaction takes place and closing mid-market prices at the
end of the appropriate period are respectively used for the conversion of transactions and holdings of foreign
currency-denominated assets into euro.

Income on reserve assets is to be recorded indistinguishably under the ‘other investment’ item of the investment
income account, including interest income on reserve holdings of debt securities, and on an accruals basis at least
quarterly.

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The view that usable reserves might be a more important indicator of a country's ability to meet its foreign
exchange obligations than gross reserves as shown in the balance of payments and international investment posi-
tion statistics has become more widespread and has been adopted in the IMF's Special Data Dissemination Standard.
To calculate usable reserves, data on gross reserves need to be supplemented with information about other foreign
currency assets and reserve-related liabilities. Accordingly, monthly data on (gross) reserve assets of the Eurosystem
are supplemented with information on other foreign currency assets and predetermined and contingent short-term
net drains on the gross reserve assets classified according to residual maturity. Moreover, a currency distinction
between gross reserve assets denominated in SDR currencies (in total) and other currencies (in total) with a quarter's
lag is also required.

Regarding specific items, holdings of monetary gold should remain unchanged in all reversible gold transactions
(gold swaps, repos, loans and deposits). Repo transactions in foreign currency-denominated securities result in
increases in the total amount of the reserve assets of the cash-borrowing NCB owing to the fact that the repoed
securities still remain on the balance sheet; in the case of reverse repos, the cash-lending monetary authority does
not register any variation in the total amount of reserve assets if the non-resident counterpart is another monetary
authority or financial institution, owing to the fact that the claim on the cash borrower is then regarded as a
reserve asset.

2.

Implementation methods for geographical allocation

A step-by-step approach has been followed for the compilation of geographically broken down balance of
payments and international investment position statistics. This approach has involved three steps towards meeting
data requirements, which were progressively more demanding:

Step 1: Compilation method at the euro-area level:: addition of national total net transactions/positions.

Step 2: Compilation method at the euro-area level:: separate addition of transactions/positions with non-residents
for credits and debits or net assets and net liabilities (balance of payments)/assets and liabilities (interna-
tional investment position).

Data requirements at the NCB level: separate identification of transactions/positions between euro-area
and non-euro-area residents, as laid down in Annex III (Tables 1, 2, 4 and 5).

Step 3: Compilation method at the euro-area level and data requirements at the NCB level:: similar to Step 2 with
the addition of a geographical breakdown within non-euro-area transactions/positions. Step 3 is only
necessary for quarterly balance of payments and annual international investment position statistics, as laid
down in Annex III (Tables 7 and 8).

Data requirements at the NCB level: separate identification of transactions/positions between euro-area
residents and residents of countries in the agreed list of counterpart countries/regions contained in Annex
III (Tables 9 to 12).

3. Classification by institutional sector in the euro-area aggregates (See also B.o.p. book, Section 3.1.6)

The sectoral breakdown of euro-area aggregates comprises monetary authorities, general government, MFIs and
other sectors of the euro area.

M on e ta ry a u th ori ti es

The ‘monetary authorities’ sector of the euro-area statistics consists of the Eurosystem.

Ge ner a l g over nment

The ‘general government’ sector of the euro-area statistics is consistent with the definition of that sector in the
SNA 93 and ESA 95 and thus comprises the following units:

— central government,

— state/regional government,

— local government,

— social security funds.

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MFIs excludi ng mone tar y a uthor i ti es

This ‘MFIs excluding monetary authorities’ sector coincides with the MFI sector for money and banking statistics
(excluding monetary authorities). It comprises:

(i) credit institutions as defined by Community law, i.e. undertakings whose business is to receive deposits or
other repayable funds from the public (including the proceeds arising from the sales of bank bonds to the
public) and to grant credit for their own account;

(ii) all other resident financial institutions whose business is to receive deposits and/or close substitutes for deposits
from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or to
make investments in securities.

O th e r se ctor s

The ‘other sectors’ category of the euro-area statistics comprises a variety of institutional units, mainly:

(i) other financial institutions not included in the MFI definition, such as collective investment institutions not
deemed to be money market funds, real estate investment institutions, securities dealers, mortgage credit institu-
tions, insurance corporations, pension funds and financial auxiliaries;

(ii) non-financial institutions, such as public and private non-financial enterprises, non-profit institutions serving

households and households.

Non -M FIs

The ‘non-MFIs sectors’ category of the euro-area statistics comprises the sectors (i) ‘general government’ and (ii)
‘other sectors’.

Table 1

Recommendations related to foreign direct investment transactions, including related income, and positions (1)

Priority

Action

Short term

All indirect FDI relationships (2) should be conceptually treated in accordance with the interpretation of international
statistical standards outlined in Chapter 1 of the Task Force on FDI report

(indirect) FDI

All
company (2) (3)

High

transactions/positions should be geographically allocated to the immediate affiliate or parent

All Member States should start compiling FDI equity stocks and reinvested earnings on the basis of the results of FDI
surveys (to be collected at least annually) (4) (5)

FDI equity stocks should be collected separately for listed (both book and market values) and non-listed companies

Low

Contributions to cover losses of direct investment enterprises should be recorded in the financial account

Medium term

The ‘current operating performance concept’ should be used by all Member States to record reinvested earnings (6)

High

Other capital components should be classified in accordance with the recommendations of the Task Force on FDI
report

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Priority

Action

Medium term

Medium

Payment of dividends from exceptional capital gains should be recorded in the financial account (thus not entering in
the calculation of reinvested earnings)

Long term

High

Indirect FDI relationships should cover (as a minimum) either (i) indirect links of ownership above 50 % or (ii) direct
and indirect links of ownership above 10 %, calculated as the product of the subsequent links of ownership along a
chain

(1) As at end 2003.
(2) This recommendation does not refer to the need to cover indirect relationships, but rather to the methodology that should be applied. See also the long-term action

related to the coverage of indirect FDI relationships in practice.

(3) This recommendation is only applicable to reinvested earnings (flows) and FDI equity stocks. To better understand the distortions that any other criterion would imply,

see Chapter 2 of the Task Force on FDI report.

(4) Exceptions are the first i.i.p. assessment (to be provided at T + 9) and real estate investments. The following non-acceptable practices should be abandoned: (i) leaving
the choice of the valuation criterion to reporting agents (market values or book values); (ii) the application of a perpetual inventory method/accumulation of b.o.p.
flows to compile stocks.

(5) During a transitional period to be defined bilaterally, best estimates for the new requirements, within the agreed deadlines, will be accepted.
(6) Member States may focus on a reduced number of companies (the biggest ones and/or holding companies) in making a distinction between ordinary and extraordinary

gains and losses.

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ANNEX V

TRANSMISSION OF DATA TO THE EUROPEAN CENTRAL BANK

The national central banks (NCBs) use the facility provided by the European System of Central Banks (ESCB), which
relies upon the telecommunications network ‘ESCB-Net’, for the electronic transmission of the statistical information
required by the European Central Bank (ECB). All exchanges of data within the ESCB use the same conceptual data
model. The statistical message format developed for this electronic exchange of statistical information is the ‘GESMES/TS’
format. This requirement does not prevent the use of some other means of transmitting statistical information to the
ECB as an agreed fall-back solution.

NCBs observe the recommendations listed below in order to ensure that data transmission functions satisfactorily.

— Completeness: NCBs report all required series keys. Reporting no series keys or non-listed series keys will be consid-
ered as incomplete reporting. Should an observation be missing, the omission is recorded using the corresponding
observation status flag. In addition, when revisions are made to only a subset of series keys, the validation rules
should be applied to the whole balance of payments.

— Sign convention: the data transmission by NCBs to the ECB as well as to the European Commission (Eurostat)
follows a uniform sign convention for all data which are to be reported. Under this sign convention, credits and
debits in the current and capital account must be reported with a plus sign, whilst net balances are to be calculated
and reported as credits minus debits. In the financial account, decreases in net assets/increases in net liabilities must
be reported with a plus sign, whereas increases in net assets/decreases in net liabilities must be reported with a
minus sign. Net balances are to be calculated and reported as net changes in assets plus net changes in liabilities.

In transmitting international investment position data, the net positions should be calculated and reported as asset
position minus liability position.

— Accounting identities of the data: the validation rules which were distributed and which are available on request

must be implemented by the NCBs before the data are transmitted to the ECB.

Whenever revisions occur, NCBs may send an updated dataset to the ECB. Any revisions should be transmitted as
follows:

— revisions for monthly balance of payments data are made available with the submission of (i) the data for the

following month, (ii) the corresponding quarterly data and (iii) the corresponding revised quarterly data,

— revisions for quarterly balance of payments data are made available with the submission of the data for the following

quarter,

— revisions for quarterly international investment position data are made available with the submission of the data for

the following quarter,

— revisions for annual international investment position data are made available with the submission of the data for

following years.

Any revisions for monthly and quarterly balance of payments data relating to full years are made available by the NCBs
to the ECB at the end of March and at the end of September, the latter together with the submission of the annual inter-
national investment position data.

Revisions for quarterly international investment position data relating to full years are made available by the NCBs to
the ECB at the end of September together with the submission of the annual international investment position data.

The data for the international reserves template may be revised on an ongoing basis, where appropriate. However, the
consistency between the end-of-period positions and the relevant items in the contributions to the euro-area (quarterly
and annual) international investment position should be ensured.

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ANNEX VI

MONITORING OF STATISTICAL COMPILATION METHODS

The European Central Bank (ECB) monitors the compilation methods used for the reporting of the balance of payments
and international investment position statistics, as well as the concepts and definitions applied on a regular basis by the
participating Member States. The monitoring will be carried out in connection with the updating of the ECB's publica-
investment position statistical methods (hereinafter ‘the
tion European Union balance of payments/international
B.o.p. book’). Besides the monitoring purpose, the B.o.p. book aims at informing the euro-area balance of payments
compilers about developments in other euro-area Member States.

The B.o.p. book contains information on the structure of balance of payments and international investment position
statistics for all Member States. There are detailed descriptions of data compilation methods and of the concepts and
definitions applied, as well as information on departures from the agreed definitions for the balance of payments and
international investment position statistics in the Member States.

The B.o.p. book is updated on an annual basis in close cooperation with the Member States.

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ANNEX VII

DATA COLLECTION IN THE AREA OF PORTFOLIO INVESTMENT

Given the inherent difficulties in the compilation of portfolio investment statistics, it was considered necessary to define
common approaches for the collection of this information across the euro area.

As explained in Section 1.4 of Annex IV, national feasibility studies were carried out concerning the possibility of data
collection on a security-by-security basis euro-area-wide. These studies concluded with the following agreement: by the
end of March 2008, euro-area Member States will collect at least quarterly portfolio investment stocks of assets and
liabilities on a security-by-security basis. Until then, some Member States will only be able to supply best estimates for
some specific portfolio investment breakdowns, in particular issuer sector or currency/country of issue.

The availability of a functioning centralised securities database (CSDB) is considered essential for the new collection
systems to become operational. Therefore, if the ‘project closure document’ for Phase 1 of the CSDB project is not
submitted to the Governing Council via the Statistics Committee of the European System of Central Banks by the end of
March 2005, this deadline will be postponed by the same amount of time as that by which the submission is late.

The target coverage is defined as follows: stocks of securities reported to the national compiler on an aggregate basis, i.e.
not using standard (ISIN or similar) codes, should not exceed 15 % of the total portfolio investment stocks of assets or
liabilities. This threshold should be used as a guide in the assessment of the coverage of Member States' systems. The
CSDB should sufficiently cover portfolio investment securities worldwide as to enable the compilation of statistics from
security-by-security data.

Portfolio investment stocks of assets and liabilities within the international investment position are compiled purely
from stock data.

From March 2008 (starting with data corresponding to January 2008 transactions and end of 2007 positions) euro-area
portfolio investment collection systems conform to one of the models in the following table:

Valid portfolio investment data collection models

— Monthly stocks (s-b-s) + monthly flows (s-b-s)
— Quarterly stocks (s-b-s) + monthly flows (s-b-s)
— Monthly stocks (s-b-s) + derived monthly flows (s-b-s)
— Quarterly stocks (s-b-s) + monthly flows (aggregate)

Notes:
‘s-b-s’ = security-by-security data collection
‘derived flows’ = difference of stocks (adjusted for movements in exchange rates, prices and other identified changes in
volume)