Bulgaria's negative net intl investment position shrinks in Q3 2013, net external liabilities fall to EUR 30.9bn
Bulgaria's net international investment position (NIIP) stood at a negative EUR 30.9bn in the third quarter of 2013, shrinking by 2.5% y/y on the back of a faster growth of foreign assets held compared to domestic assets owned by foreigners, preliminary central bank data showed.
Bulgaria's foreign assets grew 5.5% y/y to EUR 29.2bn at end-September 2013, whereas its liabilities were up only 1.2% y/y to EUR 60.2bn.
The assets' increase was due to a 48.2% y/y surge to EUR 4.8bn in portfolio investments, of which EUR 4.2bn were debt securities and EUR 596.2mn were equity securities. Direct investments abroad climbed 15.4% y/y to EUR 1.59bn. Meanwhile, the country's reserve assets declined 3.6% y/y to EUR 14.9bn.
Direct investments in Bulgaria increased by 1.9% y/y to EUR 38.7bn, while portfolio investments (largely composed of purchases of government debt) shrank 20.6% y/y to EUR 1.45bn due to the high base effect of July 2012 when the government issued a five-year EUR 950mn Eurobond. Bank loans from foreign lenders increased by 38.9% y/y to EUR 2.84bn.
| NIIP, EUR mn | 2009 | 2010 | 2011 | ІX.2012 | XII.2012 | VІ.2013 | ІX.2013 | Change, y/y |
| International Investment Position, net | -35,568.20 | -34,384.50 | -33,088.50 | -31,783.90 | -31,599.10 | -31,601.70 | -30,988.6 | -2.50% |
| Assets | 22,329.40 | 23,444.50 | 24,796.20 | 27,657.30 | 28,419.80 | 28,389.30 | 29,174.3 | 5.49% |
| Direct investment abroad | 971.3 | 1,171.30 | 1,274.90 | 1,382.70 | 1,518.30 | 1,560.80 | 1,595.3 | 15.38% |
| Portfolio investment | 1,820.20 | 2,542.80 | 2,612.90 | 3,246.50 | 4,515.50 | 4,716.50 | 4,810.7 | 48.18% |
| Financial derivatives | 27.5 | 23.4 | 60.1 | 30.5 | 33.9 | 58.5 | 58.5 | 91.85% |
| Other investment | 6,591.50 | 6,730.30 | 7,499.60 | 7,490.80 | 6,799.60 | 7,463.10 | 7,772.4 | 3.76% |
| Reserve assets | 12,918.90 | 12,976.70 | 13,348.70 | 15,506.70 | 15,552.50 | 14,590.40 | 14,937.4 | -3.67% |
| Liabilities | 57,897.60 | 57,829.00 | 57,884.70 | 59,441.20 | 60,018.90 | 59,991.00 | 60,162.9 | 1.21% |
| Direct investment in Bulgaria | 34,170.00 | 35,347.30 | 36,619.00 | 38,054.30 | 37,755.80 | 38,311.20 | 38,768.1 | 1.88% |
| Portfolio investment | 1,724.20 | 1,630.60 | 1,477.70 | 1,830.80 | 1,818.90 | 1,497.40 | 1,452.8 | -20.65% |
| Financial derivatives | 31.1 | 8.6 | 6.6 | 7.3 | 9.5 | 11.7 | 15.4 | 111.16% |
| Other investment | 21,972.20 | 20,842.60 | 19,781.40 | 19,548.80 | 20,434.70 | 20,170.70 | 19,926.6 | 1.93% |
| Source: c-bank (BNB) |
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