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NBU Streamlines FDI Accounting

NBU Streamlines FDI Accounting

The NBU has improved the FDI accounting methodology to bring it in line with international standards. 

From now on, in the balance of payments (BoP) and international investment position (IIP) statistics, loans received from nonresident fellow enterprises will be recorded as FDI. Fellow enterprises are companies that are under the control or influence of the same immediate or indirect investor, but own less than 10% of each other’s capital. 

This FDI accounting approach covers more debt transactions within multinational corporations, more accurately determines the amount of an investment, and better reflects the direction of investments.

The accounting of loans between fellow enterprises has not affected the BoP financial account, as such loans have been reclassified from "Other investments" to "Direct investments."

At the same time, after accounting for these loans, the net FDI position as of end-Q3 was revised by USD 6 billion, to USD 61.1 billion (up from USD 55.1 billion). In FDI statistics, loans between fellow enterprises are classified according to the residency of the ultimate controlling parent, meaning that FDI into Ukraine was increased by USD 3.7 billion, while FDI outflows from Ukraine were decreased by USD 2.3 billion.

Relevant retrospective revisions of the time series of external sector statistics cover the period since 2015. 

More about the methodology and results of improving the FDI accounting is available here.

Updated IIP and FDI statistics can be found here.

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