Bulgaria's negative net intl investment position shrinks in Q3 2013, net external liabilities fall to EUR 30.9bn

By bne IntelliNews January 2, 2014

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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