The Present FDI Statistical System in Bulgaria

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The Present FDI Statistical System in
Bulgaria FDI Statistics and Policy in the
Western Balkans and the South East Europe OECD
Investment Compact for Soth East Europe Istanbul,
June 7 - 9, 2006 Prepared by Vera
Rizakova Balance of Payments and External Debt
Division Statistics Directorate Bulgarian Nationa
Bank
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The Present FDI Statistical System in Bulgaria

• Responsibilities of national authorities and
  agencies
• Legal framework
• Methodological basis
• Data compilation
• Impact of FDI statistics on policy making
• Resources

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The Present FDI Statistical System in Bulgaria

• Responsibilities of national authorities and
  agencies
• The BNB compiles monthly FDI flows and quarterly
  FDI stocks data for the BOP and the IIP
  statements.
• The NSI compiles quarterly FDI flows and annual
  stocks data for the non-financial sector of the
  economy.
• There is a close co-operation between the BNB and
  the NSI. The NSI is one of the main sources for
  the compilation of FDI annual data.

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The Present FDI Statistical System in Bulgaria

• Legal framework for the BNB
• The BNB Law - Article 42 The Bulgarian National
  Bank shall compile the balance of payments of
  this country. For this purpose, all government
  and municipal authorities, as well as legal
  entities and physical persons, shall provide
  information to the BNB in accordance with a
  procedure established by the BNB.
• Foreign Exchange Law - Articles 7, 8 and 10 -
  specify the subjects that shall keep register for
  the purpose of the BOP statistics and provide
  the information to the BNB, also gives BNB the
  right to require from any person information,
  which may be relevant to the countrys balance of
  payments.

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The Present FDI Statistical System in Bulgaria

• Legal framework for the BNB
• Regulation No 27 of the BNB on the balance of
  payments statistics - establishes procedures for
  reporting and statistical declaration of
  transactions between residents and nonresidents,
  and provision of information on the balance of
  payments statistics.

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The Present FDI Statistical System in Bulgaria

• Methodological Basis
• When compiling FDI in the country, the BNB
  follows the international standards and
  requirements of
• Balance of Payments Manual, IMF, Fifth Edition,
  1993.
• Benchmark Definition of Foreign Direct
  Investment, OECD, Third Edition, 1996.
• The Foreign Direct Investment Task Force Report
  (March 2004) of the ECB and Eurostat.

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The Present FDI Statistical System in Bulgaria

• Data Sources and Compilation
• In the compilation of the FDI Flows/Stocks,
  the BNB uses data from the following sources
• Commercial banks through the ITRS - data on
  equity capital flows (monthly data)
• Banks Supervision Department of BNB - data on
  nonresidents' participation in the equity capital
  of the banks and their financial reports.
  (monthly data)
• NSI - data on equity capital and financial
  results of non-financial enterprises (flows -
  quarterly, stocks - annually)

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The Present FDI Statistical System in Bulgaria

• Data Sources and Compilation
• The Agency for Privatisation - data on
  transactions related with privatisation deals
  (flows)
• Financial Supervision Commission - data on
  nonresidents' participation in insurance and
  pension insurance companies (quarterly data)
• Central Depository - data on non-residents
  transactions of shares in companies capital
  (monthly data)
• Notaries public - on real estate purchased by
  non-residents

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The Present FDI Statistical System in Bulgaria

• Data Sources and Compilation
• The BNB surveys among non-financial sector
  enterprises on their equity capital and
  intercompany indebtedness (quarterly)
• Information received from different sources is
  cross-checked

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The Present FDI Statistical System in Bulgaria

• Data Sources and Compilation
• In accordance with the standard BOP presentation,
  FDI comprises
• Equity capital acquisition/disposal of shares
  and equities by non-residents in/from the share
  or equity capital of Bulgarian enterprises.
• Other capital principal received and paid on
  loans (both on short- and long-term) between the
  direct investor and the direct investment
  enterprise.
• Reinvested earnings the share of non-residents
  in the undistributed earnings/ loss of the
  enterprise for the reporting period.
• Direct investment is recorded in the countrys
  balance of payments on a directional basis
• resident direct investment abroad
• non-resident direct investment in the country

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The Present FDI Statistical System in Bulgaria

• Impact of FDI statistics on policy making
• Foreign direct investment is an important
  macroeconomic variable for our economy.
• Foreign direct investment is an important factor
  for the GDP and exports growth - FDI were 14 of
  GDP in 2004, 8.4 of GDP in 2005 according to
  preliminary data.

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The Present FDI Statistical System in Bulgaria

• Impact of FDI statistics on policy making
• FDI inflows are a key source for financing the
  current account deficit.
• 2005 FDI data are preliminary and are subject
  to revisions with the annual survey of the NSI.

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The Present FDI Statistical System in Bulgaria

• Publication of FDI Data
• FDI flows data are compiled and published monthly
  for the BOP purposes. Preliminary FDI stocks data
  are produced quarterly for the IIP.
• FDI data are published according to an advance
  release calendar on the monthly BOP Report of
  the BNB and on the web site of the bank
  (www.bnb.bg). FDI data are published by type of
  investment, by geographical breakdown and by
  resident economic activity.
• FDI data are reported to the ECB, Eurostat, the
  IMF.
• The national primary users are the President of
  the Republic, the Council of Ministers, the
  Ministry of Economy, the InvestBulgaria Agency,
  etc. The BNB and the the IBA have an agreement on
  sharing data between the two institutions.