Czech Republic international investment position and external debt
The investment position of the Czech Republic vis-a-vis non-residents is a survey of the positions of financial assets and liabilities of all sectors of the domestic economy (the Government sector, the banking sector incl. the CNB and the corporate sector) in relation to the non-residents of the Czech Republic as at a certain date (as at the last day of the reporting period). The investment position corresponds in the structure of the individual items to the financial account and to the change in the position of foreign exchange reserves of the CNB in the balance of payments. The data of the investment position are monitored on the gross-principle, i.e. financial assets and liabilities for the individual items are monitored separately. The difference between financial assets and liabilities represents the resulting balance of the investment position. Its value (positive or negative) determines the net financial relation of the country, or rather of the sectors of the economy, towards non-residents (the position of a creditor or of a debtor).
The data on foreign indebtedness of the Czech Republic form part of the survey of the investment position. Foreign indebtedness of the Czech Republic is defined as a survey of financial liabilities of the sectors of the domestic economy vis-a-vis nonresidents of the CR which are of debt character (i.e. liabilities with contractually determined maturity for which a yield in the form of interest belongs to the creditor). Foreign indebtedness does not include the positions of investments into equity securities, i.e. direct investments – owners’ capital, portfolio investments - equity securities and ownership interests. The positions of the individual debt liabilities correspond, just as in the case of the investment position, to the respective transactions with debt financial liabilities in the balance of payments financial account. The positions of assets and liabilities of the investment position reported as at a certain date are influenced by the transactions implemented in the previous periods and recorded in the balance of payments and other influences ensuing above all from the exchange rate and price fluctuations.
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