2004/808/EC: Guideline 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/2004/15)
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

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EUROPEAN CENTRAL BANK

GUIDELINE 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/2004/15)

(2004/808/EC)

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
Articles 5.1, 12.1 and 14.3 thereof,

(EC) No 2533/98 of 23 November 1998 concerning the
collection of statistical
information by the European
Central Bank (1) 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.

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.

either

(NCBs),

to collect

The first sentence of Article 5.1 of the Statute requires
the European Central Bank (ECB), assisted by the national
central banks
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. The
second sentence of Article 5.1 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 interna-
tional organisations. Article 5.2 stipulates that the NCBs
shall carry out, to the extent possible, the tasks described
in Article 5.1.

Information necessary to meet the ECB’s requirements in
the field of balance of payments and international
investment position statistics may be collected and/or
compiled by competent authorities other than NCBs.
Therefore, some of the tasks to be undertaken under
this Guideline 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

(4)

(5)

the NCBs

Part of the necessary statistical information relates to the
financial account of the balance of payments, the related
income and the international
investment position for
which the Eurosystem has prime responsibility. In order
to be able to fulfil their obligation to assist the ECB in
should be equipped with the
this area,
necessary statistical expertise,
in particular as regards
concepts, methodology and data collection, compilation,
analysis and transmission. In Ireland the Central Statistics
Office (CSO) collects and compiles the relevant statistical
information. In order to meet the statistical requirements
the Central Bank and Financial Services
of
the ECB,
Ireland and the CSO have to cooperate
Authority of
laid down in Recommendation
with each other as
statistical
ECB/2004/16 of 16 July 2004 on the
reporting requirements of the European Central Bank in
the field of balance of payments and international
investment position statistics,
international
reserves template (2). Recommendation ECB/2004/16 is
also addressed to the Ufficio Italiano dei Cambi, which
for
is
collecting and compiling the relevant statistical
infor-
mation in Italy.

jointly with the Banca d’Italia,

responsible,

and the

Since the adoption of Guideline ECB/2003/7 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,
tangible
and the
reserves
progress has been made with new requirements and
data collection and compilation methods within the
euro area. It is therefore necessary to replace Guideline
ECB/2003/7 with the present Guideline.

international

template (3),

(1) OJ L 318, 27.11.1998, p. 8.
(2) OJ C 292, 30.11.2004.
(3) OJ L 131, 28.5.2003, p. 20.

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(6)

(7)

(8)

is

for

(CSDB)

in the

it was

set out

i.e. one of

investment
to define
this

Given the inherent difficulties in the compilation of
considered
statistics,
portfolio
necessary
the
common approaches
collection of
information across the euro area.
Portfolio investment collection systems in the euro area
should conform from March 2008 to a common
standard,
the four models entailing, as a
the collection of quarterly stocks on a
minimum,
security-by-security basis
table
as
contained in Annex VI. The availability of a functioning
centralised securities database
considered
essential for the new collection systems to become opera-
if the project closure document’ for
tional. Therefore,
Phase 1 of the CSDB project is not submitted to the
Governing Council via the Statistics Committee of the
ESCB (hereinafter ‘the STC’) by the end of March 2005,
those applicable to other
this deadline (as well as
portfolio
be
requirements) will
time as that by
postponed by the same amount of
which the submission is late. The ESCB should also
assess by mid-2006 whether the coverage of the secu-
rities information in the CSDB and the arrangements for
data exchange with the Member States are considered
sufficient to enable NCBs, or other competent statistical
authorities where relevant, to meet the quality standards
In order to enable
specified in the present Guideline.
portfolio
compliance with
investment
residents,
issuer, according to the
broken down by sector of
deadlines contained in Table 13 of Annex II, the ECB
will provide the NCBs with CSDB information at least 15
months before the reference dates.

requirements
on
issued by euro-area

investment-related

securities

the

Reporting of data on transactions and positions in the
assets and/or liabilities of euro-area residents vis-à-vis
residents of other euro-area Member States is necessary
to fulfil the ECB’s statistical requirements in the area of
portfolio investment (and related income). The data are
used to compile the euro-area aggregated transactions
liabilities and
and positions
in portfolio investment
debits
in
income. This
accordance with national
requirements or established
practices.

in portfolio investment

is

in the future be used for many
The CSDB, which will
different statistical
(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 autho-
rities 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 accurately to compile transactions
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 compi-
lation of a sectoral breakdown in respect of the euro-area
portfolio investment liabilities data.

(9)

the world account

The use of the euro-area balance of payments and inter-
national investment position for the compilation of the
rest of
in the quarterly euro-area
financial accounts entails the need to compile interna-
tional investment position data at a quarterly frequency.
Additionally, for the euro-area financial accounts as well
as for monetary analysis,
is necessary to separate
it
deposits from loans and to identify other investments.
Moreover, the valuation of the euro-area foreign direct
investment
additional
breakdown between listed and unlisted direct investment
companies.

requires

stocks

equity

an

(10) As a contribution to the annual review of the interna-
tional role of the euro, statistical data on transactions and
positions in debt securities broken down by currency are
needed to assess the role of the euro as an investment
currency.

(11)

(12)

(13)

the

statistics

international

framework for
and international

the euro-area
The quality assessment
investment
balance of payments
reserves
position
and
template should be defined, as far as possible,
in line
with the ‘data quality assessment framework’ developed
by the International Monetary Fund (IMF). The NCBs, in
cooperation with competent authorities other than NCBs,
where appropriate, should assess the quality of the data
which they contribute. Appropriate criteria for assessing
the data quality including timeliness, accuracy, plausi-
bility,
internal and external consistency and reliability
will be established.

The transmission from the NCBs to the ECB of confi-
dential statistical
information takes place to the extent
and in the detail necessary for the exercise of the tasks
of the ESCB. Where competent authorities other than
information marked
NCBs are the sources of statistical
as confidential, the use of such information by the ECB
should be
exercise of ESCB-related
statistical tasks.

limited to the

It
is necessary to set up a procedure to carry out
technical amendments to the Annexes to this Guideline
in an effective manner, provided that such amendments
neither change the underlying conceptual framework nor
affect
in
Member States. Account will be taken of the views of
the STC when following this procedure. NCBs may
propose such technical amendments to the Annexes to
this Guideline through the STC.

the reporting burden of

reporting agents

(14)

In accordance with Articles 12.1 and 14.3 of the Statute,
ECB guidelines form an integral part of Community law,

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HAS ADOPTED THIS GUIDELINE:

Article 1

Definitions

For the purposes of this Guideline:

— ‘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
the
currencies other than the euro which do not meet
liquidity, marketability and creditworthiness
criteria of
reserve assets,

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

— ‘reserve-related liabilities’

shall mean predetermined and
contingent
short-term net drains on the Eurosystem,
similar to reserve assets and other foreign currency assets
of the Eurosystem,

— 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 partici-
pating Member States, and the ECB. Territories forming part
of, or countries associated with, euro-area Member States are
given in Annex II, Table 10,

— ‘Eurosystem’

shall mean the NCBs of

the participating

Member States and the ECB,

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

liabilities

— ‘cross-border positions’ shall mean the stock of
financial

financial
claims on and
to non-euro-area
residents. Cross-border positions shall also encompass (i)
and other
tangible non-produced assets
land, 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 investment income
account within the balance of payments statistics, and the
portfolio investment
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,

account within the

— ‘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
the
that reports, with the appropriate breakdown,
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.

Article 2

Statistical obligations of the NCBs

1.
The NCBs shall make available to the ECB data on the
cross-border transactions and positions as well as stocks of
reserve assets, other foreign currency assets and reserve-related
liabilities necessary to enable the ECB to compile the aggregated
balance of payments and international
investment position
statistics and the international reserves template of the euro
area. The data shall be made available in accordance with the
deadlines contained in Table 13 of Annex II.

— ‘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,

2.
The data shall be accompanied by readily available infor-
mation 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.

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

and positions

shall

include

The required data on the balance of payments shall be
4.
made available on a monthly and quarterly basis. The quarterly
balance of payments data
a geographical
breakdown in respect of the counterparts laid down in Table
9 of Annex II. The required data on the international reserves
template shall be made available as at the end of the month to
which the data relate. The required data on the international
investment position shall be made available on a quarterly and
annual basis. The annual international investment position data
shall include a geographical breakdown in respect of the coun-
terparts laid down in Table 9 of Annex II.

For the analysis of the international role of the euro as an
5.
investment currency,
the required data broken down by
currency shall be made available on a semi-annual basis as
laid down in Table 6 of Annex II.

From March 2008, starting with data corresponding to
6.
to end-2007 positions,
and
January 2008 transactions
portfolio investment collection systems shall conform to one
of the models set out in the table contained in Annex VI.

Article 3

Timeliness

1.
The data required for the compilation of the monthly
balance of payments of the euro area shall be 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.
The data required for the compilation of the quarterly
balance of payments of the euro area shall be made available
to the ECB within three months of the end of the quarter to
which the data relate.

3.
The data required for the compilation of the international
reserves template of the Eurosystem shall be made available to
the ECB within three weeks of the end of the month to which
the data relate.

From 1 January 2005, the data required for the compi-
4.
lation of the quarterly international investment position of the
euro area shall be made available to the ECB within three
months of the end of the quarter to which the data relate.

The annual data required for the compilation of the inter-
5.
national
investment position of the euro area shall be made
available to the ECB within nine months of the end of the
year to which the data relate.

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.

Revisions concerning the balance of payments and the
7.
international
the euro area shall be
made available to the ECB according to the time schedule laid
down in Annex IV.

investment position of

The national collection of these data shall be organised

8.
with a view to meeting these deadlines.

Article 4

Cooperation with competent authorities other than NCBs

1. Where the sources for part or all of the data described in
Article 2 are competent authorities other than NCBs, NCBs shall
establish the appropriate modalities of cooperation with these
authorities to ensure a permanent structure for transmission of
data which fulfils the ECB’s standards,
in particular on data
quality, and any other of its requirements as set out in this
Guideline, unless
is already achieved by
national legislation.

the same result

2.
For the financial account of the balance of payments, the
related income, and the international investment position, the
NCBs shall be responsible for ensuring that the concepts, meth-
odology and data collection, compilation, analysis and trans-
mission in these areas are maintained and developed.

3. Where competent authorities other than NCBs are the
source of statistical
information marked as confidential, such
the
information shall be used by the ECB exclusively for
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 iden-
tified, has explicitly given its consent to the use of such infor-
mation for other purposes.

Article 5

Transmission standard

The required statistical information shall be made available to
the ECB in a form which meets the requirements laid down in
Annex IV.

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Article 6

Quality of the statistical information

shall,

the NCBs

1. Without prejudice to the ECB’s monitoring tasks as laid
in cooperation with
down in Annex V,
competent authorities other
than NCBs as mentioned in
Article 4 where relevant, ensure the monitoring and the
assessment of
information made
available to the ECB. The ECB assesses in a similar manner
data relating to the euro-area balance of payments, international
investment position statistics and international reserves. The
in a timely manner. The
assessment shall be carried out
Executive Board of
report yearly to the
Governing Council on the quality of the data.

the ECB shall

the quality of

statistical

The ECB’s monitoring of the quality of statistical
infor-
5.
mation may include scrutiny of revisions made to these data:
firstly, to include the latest assessment of the statistical infor-
mation, thereby improving the quality; secondly, to ensure as
far as possible consistency between the corresponding balance
of payments items for each of the different frequencies.

Article 7

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 Guideline, provided that such amendments
framework nor
neither change the underlying conceptual
affect
the reporting burden of reporting agents in Member
States.

The assessment of

the quality of data on portfolio
2.
investment transactions and positions, as well as on related
income is subject to sufficient coverage of the securities infor-
mation in the CSDB. The ECB, as administrator of the CSDB,
will monitor whether, from June 2006 onwards, coverage of the
securities information is sufficient to enable NCBs, or other
competent authorities where relevant, to fully meet the quality
standards specified in this Guideline.

Article 8

Repeal

Guideline ECB/2003/7 is hereby repealed.

Article 9

Entry into force

3.
For the provision of data on transactions and positions
concerning portfolio investment assets in euro-area securities,
broken down by sector of the euro-area resident issuer, the
use of estimates is allowed until security-by-security portfolio
investment collection systems become mandatory.

4.
For the provision of data on currency of issue in respect
of portfolio investment data, the use of estimates is allowed
until
collection
systems become mandatory.

security-by-security

investment

portfolio

This Guideline shall enter into force on 1 September 2004.

Article 10

Addressees

This Guideline is addressed to the NCBs of participating
Member States.

Done at Frankfurt am Main, 16 July 2004.

For the Governing Council of the ECB
The President of the ECB

Jean-Claude TRICHET

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ANNEX I

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 b j e c t i 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 II, Table 1).

R e q u i r e m e 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 the present Guideline), 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 estimates 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 consolidation
liabilities and net transactions in securities issued and purchased by euro-area
of net transactions in total national
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 breakdown:

— 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 II to the present
Guideline, 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 transactions 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 VI.

1.2. Quarterly balance of payments statistics

O b j e c t i v e

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 cooperation with the
Commission of the European Communities (Eurostat).

R e q u i r e m e n t s

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

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 presen-
tation 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 participating
Member States and all other external transactions. As for the monthly data, a distinction between transactions 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 portfolio
transactions in securities issued by non-euro-area residents. Net
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 institutional
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.

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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 b j e c t i 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 International 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.

R e q u i r e m e 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 II, 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 II, 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 represent
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 II, Table 3, Sections II to IV.

3.

International investment position statistics

O b j e c t i 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 m e 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
present Guideline). 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 II, 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’.

L 354/42

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30.11.2004

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 positions. 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 investment of the euro area are compiled by
aggregating reported net assets in securities issued by non-euro-area residents. 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.

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 requirements
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 this Guideline.

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 VI.

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Official Journal of the European Union

L 354/43

ANNEX II

REQUIRED BREAKDOWNS

TABLE 1

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

I. Current account

Goods

Services

Income

Credit

Debit

Net

extra

extra

extra

extra

extra

extra

Compensation of employees

extra

extra

extra

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

— Reinvested earnings

(i) MFIs (excluding central banks)

(ii) Other sectors

— Other capital

(i) MFIs (excluding central banks)

(ii) Other sectors

extra

extra

extra

extra

extra

extra

extra

extra

extra

Net assets

Net liabilities

extra

national

extra

extra

extra

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

L 354/44

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Official Journal of the European Union

30.11.2004

Net assets

Net liabilities

Net

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

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

national

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)
means transactions between different Member States of the euro area

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

30.11.2004

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Official Journal of the European Union

L 354/45

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

TABLE 2

I. Current account

Goods

Services

Income

Credit

Debit

Net

extra

extra

extra

extra

extra

extra

Compensation of employees

extra

extra

extra

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

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

Net assets

Net liabilities

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

L 354/46

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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) 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

Net

extra

extra

extra

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

national

national

—

—

national

national

national

national

national

national

national

national

national

national

national

national

national

extra

extra

extra

extra

extra

extra

extra

extra

30.11.2004

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Official Journal of the European Union

L 354/47

Net assets

Net liabilities

Net

(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

Reserve assets

Monetary gold

SDRs

Reserve position in the International

Monetary Fund (IMF)

— Foreign exchange

— Currency and deposits

— With monetary authorities

— 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

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)
means transactions between different Member States of the euro area

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

L 354/48

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Official Journal of the European Union

30.11.2004

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)

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, securities and deposits

— 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 (+)

30.11.2004

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Official Journal of the European Union

L 354/49

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

3. Other (specify)

— outflows related to repos (–)
— inflows related to reverse repos (+)
— trade credits (–)
— trade credits (+)
— other accounts payable (–)
— other accounts receivable (+)

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,
and other international organisations

IMF

— other national monetary authorities (+)

— BIS (+)

— IMF (+)

(b) banks and other

financial

institutions head-

quartered in the reporting country (+)

(c) banks and other

financial

institutions head-

quartered outside the reporting country (+)

3.2. Undrawn, unconditional credit lines provided

to:

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

IMF

— other national monetary authorities (–)

— BIS (–)

— IMF (–)

(b) banks and other

financial

institutions head-

quartered in the reporting country (-)

(c) banks and other

financial

institutions head-

quartered outside the reporting country (-)

L 354/50

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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

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

PRO MEMORIA: in-the-money options

1. At current exchange rates

(a) short position

(b) long position

2. + 5 % (depreciation of 5 %)

(a) short position

(b) long position

3. – 5 % (appreciation of 5 %)

(a) short position

(b) long position

4. + 10 % (depreciation of 10 %)

(a) short position

(b) long position

5. – 10 % (appreciation of 10 %)

(a) short position

(b) long position

6. Other (specify)

(a) short position

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

— non-deliverable forwards

(i)

short positions

(ii) long positions

— other instruments

(c) pledged assets

— included in reserve assets

— included in other foreign currency assets

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Official Journal of the European Union

L 354/51

(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

(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

L 354/52

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Official Journal of the European Union

30.11.2004

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

TABLE 4

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

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

Assets

Liabilities

Net

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra/intra

national

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

—

—

national

national

national

national

national

national

national

national

national

national

national

national

national

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

30.11.2004

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Official Journal of the European Union

L 354/53

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)

— Securities

— Equities

— Bonds and notes

— Money market instruments

— Financial derivatives

Other claims

Net

extra

Assets

Liabilities

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

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

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

means positions with non-euro-area residents (for portfolio investment assets, it refers to the residency of the issuers)
means positions between different Member States of the euro area

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.

L 354/54

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Official Journal of the European Union

30.11.2004

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

Assets

Liabilities

Net

extra

extra

extra

extra

extra

Of which:

Equity stocks
values)

in foreign listed companies

(market

extra

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

Of which:

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

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

Memorandum item:

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

— Other capital

(i) MFIs (excluding central banks)

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

extra

(ii) Other sectors

II. Portfolio investment (2)

Equity securities

(i) Monetary authorities

(ii) General government

(iii) MFIs (excluding central banks)

(iv) Other sectors

extra/intra

national

extra/intra

extra/intra

extra/intra

extra/intra

—

—

national

national

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Official Journal of the European Union

L 354/55

Assets

Liabilities

Net

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

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

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

L 354/56

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Official Journal of the European Union

30.11.2004

Assets

Liabilities

Net

— 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

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

means positions with non-euro-area residents (for portfolio investment assets, it refers to the residency of the issuers)
means positions between different Member States of the euro area

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

L 354/57

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

TABLE 6

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

Debt securities

— Bonds and notes

— Money market instruments

Debt securities

— Bonds and notes

— Money market instruments

Debt securities
— Bonds and notes

— Money market instruments

Debt securities
— Bonds and notes

— Money market instruments

Debt securities
— Bonds and notes

— Money market instruments

Debt securities

— Bonds and notes

— Money market instruments

Transactions in the first/last six months of the year

Assets

extra/intra

extra/intra

extra/intra

Positions as at end of June/end of December

Assets

extra/intra

extra/intra

extra/intra

Transactions in the first/last six months of the year

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

Assets

extra/intra

extra/intra

extra/intra

Positions as at end of June/end of December

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

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

‘intra’
‘national’ means all cross-border transactions/positions by/of residents of a participating Member State (used only in connection
with liabilities on portfolio investment accounts and the net balance of the financial derivatives accounts)

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

TABLE 7

I. Current account

Goods

Services

Income

Credit

Debit

Net

Step 3

Step 3

Step 3

Step 3

Step 3

Step 3

Compensation of employees

Step 3

Step 3

Step 3

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

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

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

Step 3

Step 3

Step 3

Step 3

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(iii) MFIs (excluding central banks)

(iv) Other sectors

— Trade credits

— Loans/currency and deposits

— Loans

— Currency and deposits

— Other assets/liabilities

Reserve assets

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

Net assets

Net liabilities

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

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Annual national contributions

to the euro-area

international

investment position with geographical

breakdown (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

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

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

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L 354/61

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)

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)

(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 position.
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).

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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

Cayman Islands

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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Official Journal of the European Union

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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. M a j o r U n i t e d N a t i o n s o r g a n i s a t i o n s

WTO (World Trade Organisation)

IBRD (International Bank for Reconstruction and Development)

IDA (International Development Association)

2.2.2. O t h e r U n i t e d N a t i o n s o r g a n i s a t i o n 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 t h e r m a j o r i n t e r n a t i o n a l

i n s t i t u t i o n s , o r g a n s a n d o r g a n i s m s ( e x c l u d i n g t h e

E C B )

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 t h e r i n t e r n a t i o n a l o r g a n i s a t i o n s

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

Relevant provision(s) of the
guideline

Geographical
other investment instruments)

breakdown

(except

Article 2(4), Annex III
Section 2

Quarterly b.o.p.

Q1 2003 to Q1 2004

End of June 2004

Annex II, Table 7

Annual i.i.p.

2002 and 2003

End of September 2004 Annex II, Table 8

Geographical breakdown for other
investment instruments

Article 2(4), Annex III
Section 2

Quarterly b.o.p.

Q1 2004 to Q2 2005

End of September 2005 Annex II, Table 7

Annual i.i.p.

2003 and 2004

End of September 2005 Annex II, Table 8

Quarterly i.i.p.

Q4 2003 to Q3 2004

End of December 2004 Article 3(4)

Portfolio investment s-b-s

Quarterly i.i.p.

Q4 2007 position

End of March 2008

Article 2(6)

Annual i.i.p.

2007

End of September 2008 Article 2(6)

Portfolio investment
broken down by issuer sector

(intra) assets

Article 2(3)

Monthly b.o.p.

January to April 2006

June 2006

Annex II ,Table 1

Quarterly b.o.p.

Q1 2006

End of June 2006

Annex II, Table 2

Quarterly i.i.p.

Q4 2005 and Q1 2006 End of June 2006

Annex II, Tables 4 and 5

Annual i.i.p.

2005

End of September 2006 Annex II, Tables 4-5

additional

FDI
valuation of equity stocks

breakdowns

by

Annex III, Section 1.3

Annual i.i.p.

2004 and 2005

End of September 2006 Annex II, Table 5 and

Annex III, Table 1

Split loans/deposits

Monthly b.o.p.

January and February
2004

April 2004

Annex II, Table 1

Quarterly b.o.p.

Q1 2004

End of June 2004

Annex II, Table 2

Quarterly i.i.p.

Q4 2003 to Q3 2004

End of December 2004 Annex II, Table 4

Annual i.i.p.

2003

End of September 2004 Annex II, Table 5

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Item

First reference period(s)

First transmission/
deadline

Relevant provision(s) of the
guideline

Currency breakdown on debt secu-
rities (EUR/non-EUR)

Article 3(6)

Six-month transactions

July to December 2004 End of June 2005

Annex II, Table 6

Positions end of June/end of December 2004

End of June 2005

Annex II, Table 6

Currency breakdown on debt secu-
rities (EUR/USD/other currencies)

Article 3(6)

Six-month transactions

July to December 2007 End of June 2008

Annex II, Table 6

Positions end of June/end of December 2007

End of June 2008

Annex II, Table 6

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ANNEX III

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 ‘Implemen-
tation 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
(hereinafter ‘the BPM5’) and the IMF/Bank for International Settlements template on International
Payments Manual
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
investment position of the euro area (including reserves)’ published on its website at
payments and international
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

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

1.1.
Investment income incorporates income derived from a euro-area resident’s ownership of a non-euro-area financial asset
income derived from a non-euro-area resident’s ownership of a euro-area financial asset
(credits) and symmetrically,
(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 Components
as defined in the BPM5. The main difference is that the ECB does not require a breakdown of direct investment 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 practice, 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 standards (IMF), the
‘10 % ownership criterion’
is applied in order to infer the existence of a direct investment relationship, 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
flows/holdings
between/vis-à-vis the related entities are recorded as direct investment transactions/positions (1).

is established, all

subsequent

investment

financial

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 subsidiaries 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
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.

‘Other capital’ covers all

‘investment

income’.

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 recommendations
aimed at harmonising methodology and practices across Member States. TABLE 1 summarises the main recommen-
dations.

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 enterprises
after the claims of all creditors have been met. Stocks, shares, preference stocks or shares, participation certificates or
similar documents denote ownership of equity. Transactions/holdings of shares of collective investment institutions, e.g.
investment funds, are also included.

(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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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 VI.

For the sectoral breakdown of the euro-area net liabilities in portfolio investment, the requirements regarding interna-
tional 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 treatment 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 instruments that are linked to a specific financial instrument, indicator or commodity,
and through which specific financial risks can be traded in financial markets in their own right. Transactions in financial
derivatives are treated as separate transactions rather than as integral parts of the value of underlying transactions to
which they may be linked.

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

international reserves and international

futures, swaps,

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.

identifiable, under ‘other
Initial margin payments are regarded as changes in deposits and should be recorded,
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 derivatives and should
be recorded under ‘financial derivatives’.

if

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.

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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 encompasses
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. financial
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, inter alia, 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’.

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 collateralised
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
(MFIs’) nostro/vostro accounts and thus, reported to the ECB on a net basis under
monetary financial
liabilities.

institutions’

The principles of ‘transfer of ownership’,

‘time of settlement’ and ‘time of payment’ all conform to the IMF standards.

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 instruments 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 residents 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.

30.11.2004

EN

Official Journal of the European Union

L 354/71

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 transactions.
Additional details of Eurosystem transactions in gold, foreign exchange, holdings of SDRs and reserve position in the IMF
are available quarterly following BPM5 standard components. A separate category for financial derivatives 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 sub-category ‘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.

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 position 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 (international
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 II (Tables 1, 2, 4 and 5).

L 354/72

EN

Official Journal of the European Union

30.11.2004

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 II
(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 II (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.

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

General government
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.

MFIs excluding monetary authorities
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.

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

30.11.2004

EN

Official Journal of the European Union

L 354/73

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L 354/74

EN

Official Journal of the European Union

30.11.2004

ANNEX IV

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
considered as incomplete reporting. Should an observation be missing, the omission is recorded using the corre-
sponding 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.

investment position data. Revisions for quarterly international

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
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.

30.11.2004

EN

Official Journal of the European Union

L 354/75

ANNEX V

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 publication
European Union balance of payments/international investment position statistical methods (hereinafter ‘the B.o.p. book’). Besides
the monitoring purpose, the B.o.p. book aims at informing the euro-area balance of payments compilers about devel-
opments 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.

L 354/76

EN

Official Journal of the European Union

30.11.2004

ANNEX VI

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 III, 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
if the ‘project closure document’ for Phase 1 of the CSDB project is not
systems to become operational. Therefore,
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)