Professional Documents
Culture Documents
15
2008
BALANCE OF PAYMENTS
(Tables 15.1-15-3)
DEFINITIONS AND EXPLANATIONS
The balance of payments is compiled
according to the rules recommended by the
International Monetary Fund (IMF) (Balance of
CURRENT ACCOUNT
This account includes four secondary
accounts:
1. Goods Account: transfer of ownership
of goods between Israeli and foreign
residents.
2. Services Account: provision of services
between Israeli and foreign residents.
3. Income
Account:
income
and
expenditure between Israeli and foreign
residents, such as investments and
labour compensation. Income and
expenditure on investments include
interest, dividends and undistributed
profits.
Compensation of employees: (Table
15.2) is defined as the total expenditure
for
wages
and
salaries
and
supplementary expenditures for wages
and salaries, see detailed definition in
the paragraph Definitions of Wages,
Compensation and Labour Cost in
Chapter 14 - National Accounts.
4. Current Transfers Account: current
transfers between Israeli and foreign
residents, that do not entail any
obligations on the one receiving the
transfer.
In the goods items, values are recorded on
an f.o.b. basis (free on board), i.e., without
expenditure on transport and insurance.
These services, if they are to be included in
the balance of payments, are listed in the
respective service items.
1982).
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CAPITAL ACCOUNT
The capital account includes capital transfers.
Most of the transfers in the capital account
are transfers to Israel by immigrants.
(113)
FINANCIAL ACCOUNT
The components of the financial account are
classified by types of investments (domestic
and foreign). A subsidiary classification is by
sector of the economy, which is further
classified by the legal repayment date for
liabilities and redemption of foreign assets.
This account includes 4 secondary accounts:
1.
Direct investment: The criterion
that distinguishes between direct investment
and portfolio investment is the share of equity
held by investors. The rule defined by
international institutions is that ownership of
one-tenth of equity or more makes the
investment a direct one. Ownership of less
than one-tenth of equity is considered a
portfolio investment.
2.
Portfolio
investment:
This
category reflects activity in the Israeli stock
exchange or in a foreign stock exchange. It
includes bonds issued abroad by the
Government of Israel, in addition to
investments at less than one-tenth of equity,
as
mentioned.
Financial
derivatives
instruments are also included here.
3.
Other investment: This subgroup
includes remaining types of capital flow such
as loans from various sources, deposits,
commercial credit, and advance payments on
account of transactions.
4.
Net reserve assets: Includes
changes in the balance of foreign currency,
which is held by the Central Bank abroad (not
revalued).
EXTERNAL ASSETS
(Table 15.5)
EXTERNAL LIABILITIES
(Table 15.4)
ACTIVITIES OF
MULTINATIONAL
ENTERPRISES IN ISRAEL
(Tables 15.7-15.9)
SELECTED PUBLICATIONS
SPECIAL PUBLICATIONS
Israel's Balance of Payments 1952-1992
959
8, 2007
BALANCE OF PAYMENTS
(115)