Download BALANCE OF PAYMENTS

2006
CBS, STATISTICAL ABSTRACT OF ISRAEL 2006
15
BALANCE OF PAYMENTS
DEFINITIONS AND EXPLANATIONS
The balance of payments is compiled
according to the rules recommended by the
International Monetary Fund (IMF) (Balance of
Note: In the balance of payments data there
are current updates for data from previous
years as well as for current data. Therefore,
there are no markings of R (revised data) or
* (provisional data), even when there have
been changes in the data.
Payments Manual, 5th Ed. International Monetary Fund,
and is defined as a
systematic
record
of
all
economic
transactions carried out in a given period
between the domestic economy and the rest
of the world.
Since the 1999 Statistical Abstract, the
balance of payments is shown in a new
format. This format, adopted by international
statistics agencies and by most countries,
allows convenient international comparisons
of balance of payment flows. Additionally, the
definitions and classifications in the new
format of the balance of payments have been
harmonized with those customary in the
National
Accounts,
thereby
obtaining
consistency between the international flows
and transactions and those in the National
Accounts.
Data since 1967 include estimates of
economic transactions between residents of
Israel and non-Israeli residents of Judea,
Samaria and the Gaza Area (and Sinai until
Washington D.C., USA, 1993)
CURRENT ACCOUNT
This account includes four secondary
accounts:
1. Goods Account - transfer of ownership
of goods between Israeli and foreign
residents.
2. Services Account - provision of services
between Israeli and foreign residents.
3. Income Account
- income and
expenditure between Israeli and foreign
residents, such as investments and
labour compensation. Income and
expenditure on investments include
interest, dividends and undistributed
profits.
Compensation of employees: (Table
15.3) see detailed definition in the
paragraph “Definitions of Wages,
Compensation and Labour Cost” in
Chapter 14 - National Accounts.
4. Current Transfers Account - current
transfers between Israeli and foreign
residents, that do not entail any
obligations on the one receiving the
transfer.
In the goods items, values are recorded on
an f.o.b. basis (free on board), i.e., without
expenditure on transport and insurance.
These services, if they are to be included in
the balance of payments, are listed in the
respective service items.
1982).
The Balance of Payments consists of three
main sections:
a.
The current account: includes
trade in goods and services,
income and expenditure from
production factors - capital and
labour and current transfers;
b.
Capital
account:
includes
capital transfers (mainly by
immigrants),
c.
Financial account: includes
direct investments, tradable
portfolio investments, other
investments and net reserve
assets.
BALANCE OF PAYMENTS
‫ שנתון סטטיסטי לישראל‬,‫למ''ס‬
CAPITAL ACCOUNT
The capital account includes capital
transfers. Most of the transfers in the capital
account are transfers to Israel by immigrants.
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‫מאזן התשלומים‬
foreign banks in local banks also include
loans repayable after more than one year.
Due to lack of data, these deposits cannot be
classified according to date of repayment.
Liabilities of the economy include bonds and
shares issued by banks and distributed
directly abroad.
Total foreign liabilities also include changes
in obligations caused by fluctuations in the
exchange rate of various currencies in
relation to the US dollar, while in the balance
tables these changes were not included.
FINANCIAL ACCOUNT
The components of the financial account are
classified by types of investments (domestic
and foreign). A subsidiary classification is by
sector of the economy, which is further
classified by the legal repayment date for
liabilities and redemption of foreign assets.
This account includes 4 secondary accounts:
1.
Direct investment - The criterion
that distinguishes between direct investment
and portfolio investment is the share of
equity held by investors. The rule defined by
international institutions is that ownership of
one-tenth of equity or more makes the
investment a direct one. Ownership of less
than one-tenth of equity is considered a
portfolio investment.
2.
Portfolio investment - This category
reflects activity in the Israeli stock exchange
or in a foreign stock exchange. It includes
bonds issued abroad by the Government of
Israel, in addition to investments at less than
one-tenth of equity, as mentioned. Financial
derivatives instruments are also included
here.
3.
Other investment - This subgroup
includes remaining types of capital flow such
as loans from various sources, deposits,
commercial credit, and advance payments
on account of transactions.
4.
Net reserve assets - Includes
changes in the balance of foreign currency,
which is held by the Central Bank abroad
(not revalued).
EXTERNAL ASSETS
(Table 15.6)
External assets refer to the foreign assets of
the various institutional sectors, including the
assets of financial institutions in Israel, the
Bank of Israel and the General Accountant.
The assets table also includes estimates of
the balance of Israeli investments abroad
from 1995 and after. This item does not
include the value of real estate purchased by
Israelis abroad.
SOURCES
Data included in the balance of payments are
based on concentrated reports of the Bank of
Israel (data of the Controller of Foreign
Exchange and the Superintendent of Banks)
and various government offices, as well as on
data received from factors conducting
economic transactions with the rest of the
world. Because of the heterogeneity of the
reports obtained from various bodies, and
delays in closing financial accounts and
balances, a preliminary estimate of some
items was prepared in order to publish the
report at regular intervals. Consequently,
balance of payments data undergoes
additional processing, examination and
revisions after publication.
More detailed explanations and information
on sources, methods and definitions have
been published in the Special Series
publications and in the Current Briefings in
Statistics Series (see below).
FOREIGN LIABILITIES
(Table 15.5)
This table presents Israel’s liabilities to
foreigners, whether the repayment is in
foreign or Israeli currency. The liabilities table
includes the investments of foreigners in
Israel as of 1995. This item does not include
real estate purchases in Israel. Foreign
liabilities are classified by date of repayment
set at the time the loan was obtained. A
short-term loan is defined as one repayable
within one year; and a long-term loan is one
repayable within a period exceeding one
year.
Besides the distinction between liabilities by
date of repayment, the table classifies
obligations by sector that bears the debt, i.e.,
government,
the
private
sector,
or
commercial banks in Israel. Deposits of
BALANCE OF PAYMENTS
ACTIVITIES OF
MULTINATIONAL
ENTERPRISES IN ISRAEL
(Tables 15.8-15.10)
In recent years, the world economy has been
characterized
by
increasingly
open
international markets, by mobility of
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‫מאזן התשלומים‬
Israeli Parent Group (of an “OUT”
company): The group of all companies
registered in Israel, which are in a
continuous chain of ownership (ascending or
descending) at a rate exceeding 50% with
the Israeli Parent Company (the “OUT”
company), as defined above.
Foreign Parent Group (of an “IN”
company): The group of all companies
registered abroad, which are in a continuous
chain
of
ownership
(ascending
or
descending) at a rate exceeding 50% with
the Foreign Parent Company of an Israeli
Subsidiary (“IN” company), as defined
above.
Other Associated Companies: Companies
registered abroad which are held by an
Israeli Parent Company (“OUT” company) at
a rate ranging from 10% to 50% of the share
capital, or companies registered in Israel and
held by a Foreign Parent Group, at the rates
mentioned above.
resources, and by mutual dependence
among the various economies. One
important manifestation of these processes
of globalisation is the economic activity of
multinational enterprises. This activity has
been manifested in international trade,
financial investments, transmission of
knowledge, and distribution of production
among various countries.
As of 2002, estimates of this activity have
been conducted, and globalisation indicators
have been published in accordance with the
guidelines of the OECD which appear in the
Handbook on Economic Globalisation
Indicators, 2004.
Tables 15.8 and 15.9 present data on
international trade in goods and services
among multinational Israeli enterprises.
Table 15.10 presents data on sales of goods
and services by subsidiaries abroad of
multinational Israeli enterprises, by country.
Multinational Israeli Parent Company
(“Out” company): A company registered in
Israel, which holds one or more subsidiaries
abroad (holding over 50% of the share
capital of the subsidiary abroad).
Multinational Israeli Subsidiary (“In”
company): A company registered in Israel,
held by a Foreign Parent Company abroad
or by another foreign resident (holding over
50% of the share capital of the subsidiary in
Israel).
SELECTED PUBLICATIONS
SPECIAL PUBLICATIONS
959
Israel's Balance of Payments 1952-1992
CURRENT BRIEFINGS IN STATISTICS
11, 2006 Israel’s Balance of Payments, 2005
JUBILEE PUBLICATIONS (on the occasion of Israel’s 50th
year)
Balance of Payments (No. 5 in the series)
BALANCE OF PAYMENTS
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‫מאזן התשלומים‬