Balance of payments in the second quarter of 2011 and the external position
The Central Bank of Iceland has published on its website the preliminary statistics for the balance of payments in the second quarter of 2011, and for the external position at the end of the quarter.
The current account balance was negative by 58 b.kr. in the second quarter, as opposed to a negative balance of 45.8 b.kr. in the preceding quarter. The goods account showed a surplus of 14.6 b.kr., and the services account was positive by 15.9 b.kr. The balance on income, however, was negative by 88.5 b.kr.
As before, the deficit in the balance on income during the quarter can be attributed to financial institutions in winding-up proceedings. Expenditures due to these institutions totalled 44.4 b.kr., while revenues were 7.5 b.kr. Therefore, the balance on income excluding deposit institutions in winding-up proceedings was negative by 51.5 b.kr., and the current account balance was negative in the amount of 21.1 b.kr.
External assets totalled 4,358 b.kr. at the end of the quarter, while external liabilities totalled 14,303 b.kr. Thus the net external position was negative by 9,945 b.kr., and net liabilities declined by nearly 32 b.kr. quarter-on-quarter. Excluding the financial institutions undergoing winding-up proceedings, assets totalled 2,470 b.kr. and liabilities 3,354 b.kr., yielding a net balance of -885 b.kr.
Foreign securities holdings
Resident investors’ foreign securities holdings have been revaluated based on the preliminary results of an annual survey of cross-border securities investments, the Coordinated Portfolio Investment Survey, the final results of which will be published on the Bank’s website in September. The survey is carried out by Central Bank of Iceland staff on behalf of the International Monetary Fund (IMF). It is conducted in over 70 countries, and the results will be published on the Fund’s website later in the year.
Foreign direct investment
Aggregate flows from lending activity between Q1/2010 and Q1/2011 have been revised with reference to restructuring of loan claims and debt in foreign direct investment during the period. The revised figures on foreign direct investment for 2010, classified by country and sector, will be published on 8. September 2011.
See the whole press release here: Balance of payments Q2 2011 (pdf)
1 September 2011