Balance of payments in August 2004

In August, the deficit of the current account of the balance of payments reached CZK 18.2 billion due to deficits on the income balance (payments of dividends and reinvested earnings) and on the balance of trade. The balance of current transfers and partly also the capital account of the balance of payments include net transfers to the Czech Republic from the EU budget that amounted to CZK 1 billion.

Capital inflow on the financial account under ECB methodology was CZK 22.3 billion. The balance of direct investment reached CZK 18.9 billion, of which forecasted reinvested earnings were around CZK 6.1 billion. The inflow of portfolio investment of CZK 2.2 billion was associated with a decrease in the volume of investment on the assets side, while on the liabilities side there was an outflow of resources caused chiefly by the repayment of a debt security issued in the banking sector. An increase in the foreign assets of banks and corporations and the repayment of liabilities to the corporate sector led to a deficit in capital flows in other investment. In the government sector, income was CZK 0.7 billion, of which CZK 0.3 billion was a loan from the EIB drawn to remedy damages caused by floods. The CNB's international reserves recorded a decline adjusted for valuation changes of around CZK 2.2 billion.

Pavlína Bolfová, CNB spokesperson