International Finance 28.12.2018 PDF

Xiamen University Malaysia
Cover Page
Cover Page
Course Code : IBU209 Cover Page

Course Name : International Finance
Lecturer : Meng Lina Cover Page
Academic Session : 2018/09
Assessment Title : Latvia and Estonia Cover Page
Submission Due Date : 4th January 2019

Cover Page
Prepared by : Student ID Student Name
IBU1702021 Teo Lim Kai Cover Page
IBU1702076 Yap Zi Qi
IBU1702078 Hue Chiau YiengCover Page
IBU1609513 Chin Yee Jia
IBU1702069 Lee Jie Ying
Nurhidayu binti Mohamad
IBU1702058
Rezuan
Date Received : 4th January 2019
Feedback from Lecturer:
Mark:
ContentsM
ark:
i
ContentsM
ark:
Own Work Declaration
I/We hereby understand my/our work would be checked for plagiarism or other misconduct, and
the softcopy would be saved for future comparison(s).
I/We hereby confirm that all the references or sources of citations have been correctly listed or
presented and I/we clearly understand the serious consequence caused by any intentional or
unintentional misconduct.
This work is not made on any work of other students (past or present), and it has not been submitted
to any other courses or institutions before.
Signature:
1.
2.
3.
4.
5.
6.
Date: 4th January 2019
ii
Acknowledgement
In performing our assignment, we had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure. We
would like to show our gratitude to our lecturer Meng Lina for giving us a good guideline for
assignment throughout numerous consultations. We would also like to expand our deepest
gratitude to all those who have directly and indirectly guided us in writing this assignment.
In addition, we would also like to express our gratitude to our classmates and friends have made
valuable comment suggestions on this proposal which gave us an inspiration to improve our
assignment. We thank all the people for their help directly and indirectly to complete our
assignment
Finally, special thanks to our group members for the cooperation and willingness to sacrifice
precious time for completing this case study. In the course of our discussion, all of our members
made very important and valuable suggestions so that this report can be completed very smoothly.
Thank you all.
iii
Table of Contents
C
Cover Page .................................................................................................................................................... i
o
Own Work Declaration .............................................................................................................................. ii
n
Acknowledgement ...................................................................................................................................... iii
t
Contents....................................................................................................................................................... iv
e
Description of Coursework ...................................................................................................................... vii
1.0 Introduction of the Latvia and Estonia based on the countries’ population, n major economic
activities and demographics including currency, religion, race and languages. t ……………………1
1.1 Introduction of Latvia ...................................................................................................................... 1
s
1.2 Introduction of Estonia..................................................................................................................... 2
2.0 Description of Latvia’s current account, capital account, financial account and official reserve
in one year. Highlighted factors that contributes to the balance of
payment. ……………………………………………………………………………………………...…3
2.1 Main current account components .................................................................................................. 3
2.2 Goods.................................................................................................................................................. 4
2.3 Services............................................................................................................................................... 4
2.3.1 Transport services ...................................................................................................................... 5
2.3.2 “Other services” ......................................................................................................................... 5
2.4 Primary income ................................................................................................................................. 6
2.4.1 Direct investment income .......................................................................................................... 6
2.4.2 Portfolio investment income ...................................................................................................... 6
2.4.3 Income from “other investment” and reserve assets .............................................................. 6
2.4.4 Other primary income and compensation of employees ........................................................ 6
2.5 Secondary income ............................................................................................................................. 7
2.6 Capital Account................................................................................................................................. 7
2.7 Financial account .............................................................................................................................. 7
2.7.1 Direct Investment ....................................................................................................................... 7
2.7.2 Portfolio Investment .................................................................................................................. 8
2.7.3 Financial Derivatives ................................................................................................................. 8
2.7.4 Other Investment ....................................................................................................................... 9
2.8 Official Reserve ................................................................................................................................. 9
2.8.1 Other Reserve Asset ................................................................................................................... 9
iv
3.0 Description of Estonia’s current account, capital account, financial account and official reserve
in one year. Highlighted factors that contributes to the balance of payment. ……………………..10
3.1 Current Account ............................................................................................................................. 10
3.1.1 Goods......................................................................................................................................... 11
3.1.2 Services...................................................................................................................................... 12
3.1.3 Primary income, secondary income and the capital account ............................................... 13
3.2 Capital Account............................................................................................................................... 14
3.3 Financial Account ........................................................................................................................... 15
3.3.1 Direct investment ..................................................................................................................... 15
3.4 Official Reserve Assets Account .................................................................................................... 16
4.0 Identify the strengths and weakness of the Latvia’s balance of payments (in term of import,
export, investment, reserve and other macroeconomic factors). ……………………………………16
4.1 Current Account ............................................................................................................................. 16
4.1.1 Strength: Latvia’s best prospect industry sector ——Transportation Services ................ 17
4.1.2 Weakness: Increasing Deficit in Latvia’s Trade of General Merchandise from 2016 to
2017..................................................................................................................................................... 17
4.2 Capital Account............................................................................................................................... 17
4.2.1 Strength: Capital Transfers for the General Government due to EU Region Policy ........ 17
4.2.2 Weakness: Capital Transfer for Financing of households and non-financial corporations
............................................................................................................................................................ 18
4.3.1 Strength: portfolio investment ................................................................................................ 18
4.3.2 Weakness: other investment ................................................................................................... 19
4.4 Macroeconomic factors .................................................................................................................. 19
4.4.1 Strength: Unemployment rate ................................................................................................ 19
4.4.2 Weakness: Investment ............................................................................................................. 19
5.0 Identify the strengths and weakness of the Estonia's balance of payments (in term of import,
export, investment, reserve and other macroeconomic factors). ……………………………………20
5.1 Current Account ............................................................................................................................. 20
5.1.1 Strengths: Transportation Service ......................................................................................... 20
5.2 Capital Account............................................................................................................................... 20
5.2.1 Strengths ................................................................................................................................... 20
5.3.1 Strengths: Official Reserve ...................................................................................................... 21
v
5.3.2 Weakness: Other Investment Assets ...................................................................................... 21

5.4 Macroeconomics Factor ................................................................................................................. 21
5.4.1 Strengths: Employment ........................................................................................................... 21
5.4.2 Weakness: Inflation ................................................................................................................. 21
6.0 Comparison between Latvia and Estonia ......................................................................................... 21
6.1 Current Account ............................................................................................................................. 21
6.2 Capital Account............................................................................................................................... 22
6.4 Macroeconomics Factor ................................................................................................................. 22
7.0 Conclusion ........................................................................................................................................... 23
8.0 References ............................................................................................................................................ 24
9.0 Appendix of Latvia’s Balance of Payments ...................................................................................... 26
LATVIJAS MAKSĀJUMU BILANCE. ANALĪTISKIE RĀDĪTĀJI (LATVIA'S BALANCE OF
PAYMENTS. ANALYTICAL INDICATORS) ................................................................................. 26
LATVIJAS MAKSĀJUMU BILANCE (LATVIA'S BALANCE OF PAYMENTS) ..................... 26
LATVIJAS STARPTAUTISKO INVESTĪCIJU BILANCE (LATVIA'S INTERNATIONAL
INVESTMENT POSITION) ................................................................................................................ 36
LATVIJAS STARPTAUTISKO INVESTĪCIJU BILANCE (ATLIKUMA PĀRMAIŅAS; 2017.
GADS) [LATVIA'S INTERNATIONAL INVESTMENT POSITION (CHANGES IN
POSITION; 2017)] ................................................................................................................................ 42
LATVIJAS TIEŠĀS INVESTĪCIJAS ĀRVALSTĪS UN TIEŠĀS INVESTĪCIJAS LATVIJĀ
(DARĪJUMI) [LATVIA'S DIRECT INVESTMENT ABROAD AND DIRECT INVESTMENT
IN LATVIA (TRANSACTIONS)] ....................................................................................................... 48
(ATLIKUMS PERIODA BEIGĀS) .................................................................................................. 49
[LATVIA'S DIRECT INVESTMENT ABROAD AND DIRECT INVESTMENT IN LATVIA
(CLOSING POSITION)]...................................................................................................................... 61
10.0 Appendix of Estonia’s Balance of Payments .................................................................................. 62
vi
Description of Coursework
Course Code IBU209

Course Name International Finance
Lecturer Lina Meng
Academic Session 2018/09
Assessment Title Balance of Payment
A. Introduction/ Situation/ Background Information

The balance of payment (BOP), also knowns as balance of international payments, summarizes all
international transactions that a country’s individuals, companies and government bodies complete.
These international transactions consist of imports and exports of goods, services and capital, as
well as transfer payments such as foreign aid and remittance.
Students have to understand the conceptual and application of Balance of Payment for two counties
selected by them. They have to analysis, evaluate and compare the current account, capital account
and financial account of both counties.
B. Course Learning Outcomes (CLO) covered

At the end of this assessment, students are able to:
CLO 1 explain basic foundation of international finance and characteristics of the foreign
exchange market
CLO 2 analyze investment in the world financial market
CLO 3 evaluate and manage the foreign exchange exposures.
C. University Policy on Academic Misconduct
1. Academic misconduct is a serious offense in Xiamen University Malaysia. It can be defined

as any of the following:
i. Plagiarism is submitting or presenting someone else’s work, words, ideas, data or
information as your own intentionally or unintentionally. This includes incorporating
vii
published and unpublished material, whether in manuscript, printed or electronic form into
your work without acknowledging the source (the person and the work).
ii. Collusion is two or more people collaborating on a piece of work (in part or whole) which
is intended to be wholly individual and passed it off as own individual work.
iii. Cheating is an act of dishonesty or fraud in order to gain an unfair advantage in an
assessment. This includes using or attempting to use, or assisting another to use materials
that are prohibited or inappropriate, commissioning work from a third party, falsifying data,
or breaching any examination rules.
2. All the assessment submitted must be the outcome of the student. Any form of academic
misconduct is a serious offense which will be penalised by being given a zero mark for the
entire assessment in question or part of the assessment in question. If there is more than one
guilty party as in the case of collusion, both you and your collusion partner(s) will be subjected
to the same penalty.
D. Instruction to Students
a) Students shall form a group of 5-6 members only.
b) Each group should choose two EU countries at one year. Identical pairs of counties among
groups are NOT ALLOWED. First come, first service.
c) The written project has to be between 20-25 pages write up and need to follow all the university
required criteria for a written assignment.
d) The hard submission need to be bonded. Save the burn any materials used with the submission.
e) All works done by other authors MUST be cited using APA citation method. Citations
reference should be listed in Reference.
f) Additional figure/charts should be shown and attached together with the report in the text
accordingly.
g) The report should be type and justified. Spacing 1.5 Font type, Time New Roman, Font size:
12.
h) The presentation will be started at Week 10 (3 Dec 2018). Each group has 30 min to present
your works. The due date of final report is 4 Jan 2019.
viii
i) You MUST use the Assignment Cover Page provided by the university (Template of
Assignment Cover Page @ 2018.02.09).
E. Evaluation Breakdown
Percentage
No. Component Title
(%)
1. Introduction for both counties 10
2. Diagrams & economic knowledge 20
3. Analysis & comments 40
4. Overall structure and report presentation 20
5. Citation and reference 10
TOTAL 100
F. Task(s)
Students in a team have to carry out the tasks as follows:
a) Introduce the two EU countries based on the countries’ population, major economic activities
and demographics including currency, religion, race and languages.
b) Describe and interpret the two countries’ current account, capital account, financial account
and official reserve in one year. Highlight the factors that contributes to the balance of payment.
c) Identify the strengths and weakness of the countries balance of payments (in term of import,
export, investment, reserve and other macroeconomic factors).
d) Summarize all relevant key findings clearly in the conclusion.
ix
APPENDIX 1
MARKING RUBRICS
Component Percentage
Latvia and Estonia
Title (%)
Score and Descriptors
Weight
Criteria Excellent Good Average Need Improvement Poor Marks
(%)
(5) (4) (3) (2) (1)
All topics are
All topics are All topics are
addressed and
addressed and addressed and One or more
Amount of most questions One topic was
all questions most questions topic were not 10 3
information answered with not addressed.
answered with answered – addressed.
at least minimal
sufficient detail. detail is lacking.
detail.
Diagrams were Diagrams were
Diagrams were Diagrams were
Diagrams & clear drawn, drawn, labeled Poorly drawn
drawn but with drawn but with
economic labeled and and related to and labeled 20 6
minor labeling significant
knowledge related to the the issues diagrams.
error. labeling error.
issues discussed discussed.
Exceptional
analysis and
view provided. Good economic
Demonstrate Sound and clear Good analysis analysis and Satisfactorily
Analysis &
strong ability to analysis and and view view provided explained and 40 12
comments
apply view provided. provided. with some analyzed.
economics errors.
knowledge
learnt.
Good report
Excellent and
structure with Good
impactful report Poor
average presentation
structure. Excellent report presentation of
satisfactory of structure of
Overall Accurate structure with overall
overall overall
structure and expression with good intellectual structure,
structure, structure, 20 6
report very good skilled, knowledge base
knowledge base. knowledge base
presentation intellectual teamwork and but report was
Report included but report was
skilled, originality. haphazardly
most of the not well
teamwork and prepared.
important issues prepared.
originality.
analyzed.
Adequate and
Exceptional and Limited
Citation and fair review of
wide range of reference 10 3
reference referenced
references used provided.
provided
TOTAL 100 30
Note to students: Please print out and attach this appendix together with the submission of
coursework
X
1.0 Introduction of the Latvia and Estonia based on the countries’ population, major
economic activities and demographics including currency, religion, race and languages.
1.1 Introduction of Latvia
In 2017, the statistics of the population of Latvia is 1,950,100. Since 1991, Latvia’s natural
growth of the population has been negative due to various reasons that contribute to the
statistics. However, the ratio of male and female has remained largely unchanged in the past
few years, which is 45.9% and 54.1% respectively. [E, J, 2018]
Latvians are indigenous people in Latvia, but Latvia has many other ethnic groups that are also
living in Latvia, of which the Russian minority is the largest ethnic group. According to the
statistics report in the beginning of 2017, the population of Latvia was divided into 62% of the
population of Latvia, 25.4% of Russians, 3.3% of Belarusians, 2.2% of Ukrainians, 2.1% of
Poles and 5% of other ethnic groups which is Lithuania, Jews and others.
Latvian is the official language in Latvia. According to the Official Language Law Section 3
and 4 of Latvia constitution, the state ensures the development and use of the Latvian sign
language for communication with people with impaired hearing.
The three cornerstones of the Latvian economy are agriculture, chemicals and logistics.
Agriculture enjoys the fertile soil and temperate climate of Latvia. This is the traditional trade
of Latvians and it still has practical significance. The chemical industry relies on highly
educated human resources. Local experts with university education provide innovative basic
research and development such as the Institute of Organic Synthesis. Drug discovery is one of
the highlights of the Latvian chemical industry. Since the geographical location of Latvia, the
logistics industry has established a good foundation since ancient times. Latvia's ports, railways
and highways have always linked Europe and other parts of the West to the East. The Baltic
region next to Latvia can reach 25 million customers within 48 hours. Riga Airport offers
European and intercontinental flights to and from nearly 100 destinations. [Latvia, 2018]
Figure 1.1.1 View of Latvia
1
1.2 Introduction of Estonia
Figure 1.2.1 Welcome to Estonia
Estonia, the country that is located at the Northeast Europe, the northernmost of the three Baltic
countries. The Estonian region includes approximately 1,500 islands and small islands and the
most two largest of these islands, Saaremaa and Hiiumaa, are located on the west coast of the
Estonian continent.
Compared with other European countries, Estonia has a large percentage of foreign-born
residents and children that are born in Estonia. Only for about two-thirds of the population are
ethnic of pure Estonians. Other than that, Russians are the most significant minority,
comprising about one-fourth of the citizenry. Except for Estonians and Russians, other minority
ethnic includes Ukrainians, Belarusians, and Finns.
Estonian is the official language of the country. More than two-thirds of the people speak
Estonian as the first language. However, the rest of the people using Russian as their first
language.
The official currency of Estonia is the euro whose currency symbol is € and EUR is its code.
However, the kroon whose currency code is EEK and symbol is Kr used to be the country's
official currency between the years of 1928 and 1940, and also between 1992 and 2011.
[Chepkemoi, J., 2017]
Estonian service sector employs over 60% of workforce. Estonia has a strong information
technology sector, partly due to the Tiigrihüpe project undertaken in mid-1990s, and has been
mentioned as the most "wired" and advanced country in Europe in the terms of e-government.
Farming, collectivized until 20 years ago, has become privatized, more efficient, and the
farming area has increased recently. The mining industry makes up 1% of the GDP. Mined
commodities include oil shale, peat, and industrial minerals, such as clays, limestone, sand and
gravel.
2
2.0 Description of Latvia’s current account, capital account, financial account and official
reserve in one year. Highlighted factors that contributes to the balance of payment.
(EUR millions)
2016 2017
Balance Balance
Current Account 342 -204
Capital Account 249 211
Financial Account 443 201
Official Reserve Account 124 892
Table 2.0.1 Overall review of Latvia’s balance of payment accounts
In 2016, Latvia’s current account showed the highest surplus, which had accounted for 342
million. However, on the other hand, Latvia’s official reserve account owned the lowest surplus
of 124 million. While in 2017, current account of Latvia had suddenly become the only deficit
account by 204 million. Official reserve account of Latvia also had suddenly become the
highest surplus account with a balance of 892 million in 2017.
2.1 Main current account components
(EUR millions)
2016 2017
Credit Debit Balance Credit Debit Balance
Current Account 17269 16927 342 18437 18940 -204
Goods 10391 12309 -1918 11350 13951 -2602
Services 4575 2433 2141 4890 2645 2245
Primary Income 1398 1460 -62 1145 1626 -182
Secondary Income 905 725 180 1052 718 334
Table 2.1.1 Main current account components of Latvia
Latvia’s current account showed a deficit of EUR 204 million in 2017, equivalent to 0.8%
of GDP, following a current account surplus of 342 million that was equivalent to 1.4% of GDP
in 2016. Changes in the current account balance stem from two opposing developments that
are explained in detail as shown below:
• a 684-million increase in the deficit on trade in goods;

• a 104-million increase in the surplus on trade in services;
• a 120-million rise in the primary income deficit;
• along with a 154-million increase in the secondary income surplus
3
Current Account of Latvia (Gross Balances)
3000
2000
Goods
(EUR millions)
1000
Services
0
Primary Income
-1000 Secondary Income
Current Account
-2000
-3000
2013 2014 2015 2016 2017
Figure 2.1.2 Gross Balances of Current Account in Latvia
Looking at the 5-year period from 2013 to 2017, Latvia’s trade in services is gradually
increasing, while the primary income is slowly decreasing. Latvia’s trade in goods had reached
a peak during 2016 but started to fall in 2017. Trade in services is the key component in the
surplus of Latvia’s current account in 2016 while trade in goods is the main reason in the deficit
of Latvia’s current account in 2017.
2.2 Goods
Total trade in goods and trade in goods by sector
(EUR millions)
Latvia’s trade in goods continued to show deficit
from 1918 million in 2016 to 2602 million
in 2017. General merchandise makes a key
contribution to the trade in goods deficit.
Table 2.2.1 Total trade in goods and trade in goods by sector of Latvia
2.3 Services
(EUR millions)
Latvia’s trade in services continued to show
surplus from 2141 million in 2016 to 2245
million in 2017. The small surplus is primarily
due to the export of transport services
(+74 million), computer and information services
(+69 million) and construction (+52 million).
Table 2.3.1 Services components of Latvia
4
2.3.1 Transport services
Travel Services of Latvia in 2016 and 2017

1000 855
738
800
600 420 401 456 416
291 316
400
200 46 36
0
-200 -74 -78 -23 -12
-152 -128
-400 -230 -200
-328 -303
Sea Transport Air Transport Rail Transport Road Transport Other modes of
transport, postal and
courier services
2017 Credit 2017 Debit 2016 Credit 2016 Debit
Figure 2.3.1.1 Travel Services of Latvia in 2016 and 2017
The surplus on trade in transport services stood at 1261 million in 2017, compared to 1187
million in 2016. This change stems from a huge surplus on road transport that could combat
the deficit on air transport. The surplus on sea transport rose by 19 million. This increase stems
mainly from other transport expenses (harbour services, chartering, etc.). The deficit on air
transport increased from 303 million in 2016 to 328 million in 2017 as a result of a decline in
receipts, particularly for passenger transport. Road transport posted a deficit of 230 million
in 2017, with a 212 million deficit on freight transport.
2.3.2 “Other services”

Other services of Latvia in 2016 and 2017
-33 27
Repair Services -24 26
-6 23
Manufacturing Services -5 32
-14 41
Government goods and services n.i.e. -13 40
-18 33
Personal, cultural and recreational services -14 16
-567 648
Other business services -521 590
-163 425
Computer and information services -131 324
-117 195
Telecommunications services -151 209
-40 6
Charges for the use of intellectual property n.i.e. -33 5
-195 370
Financial Services -163 445
-4 5
Insurance and pension services -9 3
-42 267
Construction -20 193
-700 -500 -300 -100 100 300 500 700

(EUR millions)
2017 Debit 2017 Credit 2016 Debit 2016 Credit
Figure 2.3.2.1 Other services of Latvia in 2016 and 2017
5
The “other services” item mainly covers other business services (research and development
services, professional and management consulting services, technical, trade-related and other
business services). The surplus on trade in these services rose sharply from 799 million in 2016
to 841 million in 2017. In 2017, exports rose by nearly 157 million, outstripping imports, which
had only increased by 116 million. More specifically, the surplus in 2017 was increased by
other business services (+81 million) telecommunications services (+78 million), computer and
information services (+262 million), financial services (+175 million) as well as construction
(+225 million).
2.4 Primary income

(EUR millions)
Latvia’s primary income continued to
show deficit from 62 million in 2016 to
182 million in 2017. Direct investment
income makes a key contribution to the
primary income deficit.
Table 2.4.1 Primary income of Latvia

2.4.1 Direct investment income
The estimated direct investment income deficit stood at EUR 1055 million in 2017, up by
nearly 102 million compared to 2016. This includes 774 million in dividends, 238 million in
reinvested earnings and 43 million in debt instruments.
2.4.2 Portfolio investment income

The surplus on portfolio investment income was slightly bigger in 2017, standing at 36 million,
compared to 20 million in 2016. Income from equity securities and investment fund
shares/units and from debt securities (mainly bonds) all contributed to the increase in the
surplus.
2.4.3 Income from “other investment” and reserve assets

The balance on income from “other investment”, meaning the current loans and deposits,
showed a deficit of 20 million in 2017, compared to a deficit of 39 million in 2016. Indeed, the
balance of external debt and claims arising from “other investment” showed a smaller deficit
in 2017 than in 2016. Income on reserve assets posted a surplus of 70 million in 2017.
2.4.4 Other primary income and compensation of employees

From 2016 to 2017, the surplus for other general government primary income had declined at
26 million.
6
2.5 Secondary income
(EUR millions)
2016 2017
Balance
General government secondary income -121 -21
Financial and non-financial corporations, households 301 355
Total 180 334
Table 2.5.1 Secondary Income of Latvia
The secondary income surplus deepened in 2017 to reach 334 million. The financial and non-
financial corporations, households sector accounts for most of the surplus.
2.6 Capital Account
(EUR millions)
2016 2017
Balance
Gross acquisitions/disposals of non-produced non-financial assets 0 1
Capital transfers 249 210
General government 254 216
Financial and non-financial corporations, households -5 -6
Total 249 211
Table 2.6.1 Capital Account of Latvia
The surplus on Latvia’s capital account was slightly smaller in 2017, standing at 211 million,
compared to 249 million in 2016. The main contributor to the decrease in the surplus is the
capital transfers for the general government.
2.7 Financial account

(EUR million)
2016 2017
Assets Liabilities Net Assets Liabilities Net
Financial account 443 201
Direct investment 217 221 -4 438 996 -558
Portfolio investment 1876 964 912 2255 20 2235
Financial derivatives -282 -484 202 -702 -209 -493
Other investments 193 984 -791 -163 1217 -1875
Reserve assets 124 892
Table 2.7.1 Financial Account of Latvia
2.7.1 Direct Investment

(EUR million)
2016 2017
Direct Investment
Equity 66 -485 551 98 984 -886
Reinvested earnings 126 471 -345 42 280 -238
Debt instruments 126 235 -109 298 -267 565
Table 2.7.1.1 Direct Investment of Latvia
7
The direct investment of Latvia was -4 million in 2016 and fell heavily to -558 million in 2017.
The equity capital transaction in 2017 was -886 million, were dropped from the high figure of
551 million in 2016. Reinvested earnings are usually weak and showed a negative balance
because of the relatively low earnings of direct investment enterprises in Latvia and the large
proportion that such enterprises pay out in dividends. They stood at -238 million in 2017, up
from -345 million in 2016. The debt instruments had negative balance of 109 million in 2016
but increased to 565 million in 2017.
2.7.2 Portfolio Investment

(EUR millions)
2016 2017
Portfolio Investment Assets Liabilities Net Assets Liabilities Net
Listed and unlisted shares and
investment fund shares or units 132 -24 156 555 4 551
Debt securities 1744 989 755 1700 15 1685

Total 1876 965 911 2255 19 2236
Table 2.7.2.1 Portfolio Investment of Latvia
Portfolio investment posted a net capital flow of 911 million and 2236 million in both years
respectively.
2.7.3 Financial Derivatives

(EUR millions)
2016 2017
Financial Derivatives
Assets Liabilities Assets Liabilities
Central bank -273 -458 –505 –181
MFI (excl. central bank) 0 0 –64 0
General government -9 –25 –124 –26
Financial corporation (excl. MFIs) 0 0 0 0
Non-financial corporations and households 0 0 –9 –1
Table 2.7.3.1 Financial Derivatives of Latvia
Transaction in financial derivative produced a negative net inflow of 282 million and net
outflow of -484 million in 2016. This resulted the net financial derivative in 2016 was 202
million. However, in the year 2017, the net inflow has become –702 million and net outflow
was -209 million, the net financial derivative dropped to -493 million.
8
2.7.4 Other Investment
(EUR millions)
2016 2017
Other Investment
Other equity 62 0 62 48 2 46
Currency and deposits -91 1176 -1267 -330 1138 -1468
Loans 20 -584 604 -204 582 -786
Insurance, pension and
18 15 3 3 -10 13
standardise guarantees
Trade credit and
250 377 -127 356 16 340
advances
Other -66 -1 -65 -36 -16 -20
Table 2.7.4.1 Other Investment of Latvia
Net balance in other equity only accounted for 62 million in 2016 and fall to 46 million in 2017.
On the other hand, currency and deposit of Latvia has decrease from negative number of 1267
million to 1468 million between these two years.
Loan was 604 million in 2016 and decrease significantly in 2017, with only -786 million. Trade
credit and advances was -127 million in 2016, but it grew to 340 million in the following year.
In the year 2016, the net value of Latvia’s other asset and liabilities was -65 million but raise
to -20 million in 2017.
2.8 Official Reserve

2.8.1 Other Reserve Asset
(EUR millions)
2016 2017
Other Reserve Assets
Net Net
Currency and deposits -67 -59
Securities 192 950
Financial derivatives 0 0
Other claims 0 0
Total 124 892
Table 2.8.1.1 Other Reserve Asset of Latvia
In year 2016 and 2017, Latvia did not have any transaction in monetary gold, special drawing
right and reserve position in IMF. However, other reserve asset such as currency and deposit
has increased from -67 million to -59 million in 2017. Securities was accounted for 192 million
in 2016 and increased sharply to 950 million in 2017.
9
3.0 Description of Estonia’s current account, capital account, financial account and
official reserve in one year. Highlighted factors that contributes to the balance of payment.
(EUR millions)
2016 2017
Balance Balance
Current Account 425.0 750.5
Capital Account 225.4 230.2
Financial Account 281.5 1008.3
Official Reserve Account -48.1 -23.6
Table 3.0.1 Overall review of Estonia’s balance of payment accounts
In 2016, Estonia’s current account showed the highest surplus, which had accounted for 425
million. However, on the other hand, Estonia’s official reserve account is the only deficit
account which stood at -48.1 million. While in 2017, Estonia’s financial account appeared to
be the highest surplus account which stood at 1008.3 million. Estonia’s official reserve account
in 2017 remained as the only deficit account which stood at -23.6 million.
3.1 Current Account

（EUR millions）
Table 3.1.1 Current Account of Estonia
Estonia’s current account showed a surplus of 750.5 million in 2017, equivalent to 4.9% of
GDP, following a current account surplus of 425 million that was equivalent to 3.5% of GDP
in 2016. Changes in the current account balance stem from two opposing developments that
are explained in detail as shown below:
• a 55.4 million reduction in the deficit on trade in goods;

• a 248.1 million decrease in the surplus on trade in services;
• a 2158.1 million increase in the primary income surplus;
• Along with a 156.8 million decrease in the secondary income deficit.
10
3.1.1 Goods
Figure 3.1.1.1 Gross Balances of Current Account in Estonia
Trade in goods includes general merchandise, net exports of goods under merchanting, and
non-monetary gold. Purchases of goods under merchanting are recorded as negative credit and
sales of them as positive credit. [Estonia’s BOP, 2018]
Normal exports of goods grew by 6.4%

Normal imports by major groups of goods
over the year to stand at 11.6 billion. -1% 5%
4% Food
Machinery and equipment are the largest 10%
Mineral Products
Chemical Products
Clothing, Footwear and Headgear
group of goods although they declining by 15%
22% Timber, Paper and Products
Metals and Metal Products
8%, and 40% of exports of that group were -6% Machinery and Equipment
7% Transport Vehicles
of mobile communications equipment. The 18% Furniture, Toys, Sporting Goods
9% Other
3%
biggest contributors to growth in exports Total
are mineral products, wood products and

Figure 3.1.1.2 Normal imports by major groups of goods
metal products.
The main sources of the growth in imports

Normal imports by major groups of
goods Food were transport vehicles and mineral products.
7% 7% Mineral Products
-4%
Chemical Products
The 32% growth in transport vehicles are came
8%
17%
Clothing, Footwear and
Headgear
from the imports of motor vehicles, ships and
Timber, Paper and Products
25% 7%
Metals and Metal Products
ferries. The largest group of goods imported
13% 2% Machinery and Equipment
under mineral products was motor fuels.
8% Transport Vehicles
-2%
[Estonia’s BOP, 2018]
Figure 3.1.1.3 Normal Imports by Major Groups of Goods
11
3.1.2 Services
Exports of services increased by 9% in 2017 and imports Exports and imports of
by 7%. The biggest contribution to the growth in the services
2008
2009
11% 12% 9%
services turnover came from countries in the European 9% 2010
2011
9% 2012
Union, with other markets playing a lesser role. The 11% 2013
2014
9% 2015
surplus increased on the services account and was 1.9 9% 2016
11% 10% 2017
billion euros, or 8% of GDP.
Figure 3.1.2.1 Exports and Imports of Service
Exports of services by major categories Exports of services were 522 million euros
5%
-1%
Manufacturing services
more in 2017 than a year earlier at 6 billion.
-7% 7% 7%
9% Maintenance and repair services The structure of services exports has been
Transport
6% relatively stable over the years. The largest
16% · passengers
16% contribution was again the 30% provided
· freight
9%
9% · other transport services by transport services, followed by travel
1% 4% · other*
3% services with 24% and other business
Figure 3.1.2.2 Exports of Services by Major Categories services with 19%. Other business services
include trade services, legal assistance, accounting, management consulting, scientific and
technical services, other professional services, and operational leases. Exports of
telecommunications, computer and information services have grown rapidly in recent years,
and they accounted for 11% of services exports in 2017. [Estonia’s BOP, 2018]
Figure 3.1.2.3 Transport Service of Estonia

Transport services were provided abroad to a value of 1.8 billion in 2017, and exports of them
were up 12%. The trough of the past couple of years, when transit transport was down
substantially, has now been exited. Exports of transport services returned to their levels of a
12
couple of years earlier in 2017. The growth in the export of freight transport was 13%, while
exports of passenger transport grew by a very rapid 23%.
Imports of services by major categories

Manufacturing services
Maintenance and repair services
Transport
-3%
5% · passengers
1%
-1% · freight
· other transport services
18% · other*
1%
11% Travel services
8% Construction services
9% Telecommunications, computer and information services
7% 4% Other business services
4% 11% Government services
17%
Other
Total
Figure 3.1.2.4 Imports of Services by Major Categories
Imports of services were 4.2 billion in 2017, which was 7% more than in the previous year.
Transport services accounted for 33% of services imports, followed by travel services with 27%
and other business services with 19%. The main source of growth in imports was
telecommunications, computer and information services, which grew by 16% over the year,
followed by transport services, which increased by 12%. Although growth in imports of
processing services was fast at 26%, such services continued to account for only a small share
of the total. [Estonia’s BOP, 2018]
3.1.3 Primary income, secondary income and the capital account
Inflow Outflow Balance

2016 2017 Change 2016 2017 Change 2016 2017
(%) (%)
Primary income 1239.6 1220.6 -1.5 1686.8 1691.8 0.3 -447.2 -471.3
Labour income 328.1 325.3 -0.9 64.8 87.7 35.4 263.4 237.6
Investment income 713.2 692.1 -3.0 1582.8 1561.5 -1.3 -869.6 -869.4
• Income on direct 493.3 449.8 -8.8 1477.7 1452.8 -1.7 -984.3 -1003.0
investment
• Income on portfolio 157.1 197.2 25.5 74.2 78.4 5.6 82.9 118.8
investment
• Income on other 62.8 45.1 -28.1 31.0 30.4 -1.8 31.8 14.7
investment
Other primary income 198.2 203.1 2.5 39.2 42.6 8.6 159.0 160.5
Table 3.1.3.1 Components of primary income (EUR million)
The net outflow of primary income increased a little in 2017 to 471 million. The largest
component of primary income is investment income, which is covered in more detail together
with the analysis of direct, portfolio and other investment.
13
The main source of inflows into
primary income (excluding
investment income), secondary
income and the capital account was
transfers from the Structural Funds of
the European Union. Figure 3.1.3.2 Total primary income (excluding investment
income), secondary income and the capital account by
groups of countries
The surplus in secondary

income in 2017 was 146 million.
The inflow of secondary
income grew by 25% to 619
million, of which 39% went to
the general government and the
Figure 3.1.3.3 Inﬂow and outﬂow and balance of secondary income
rest to other sectors. Around four
fifths of the transfers to the general government came from foreign assistance, while the rest
was mostly tax payments by non-resident employees. Half of the amount received by other
sectors came from foreign assistance. Social transfers from abroad, mainly pensions, still
played an important role, accounting for 15% of the income received by other sectors.
Remittances to Estonia from workers abroad stood at 47 million, or 12% of the amount received.
3.2 Capital Account
Inflow Outflow Balance

2016 2017 Change 2016 2017 Change 2016 2017
(%) (%)
Secondary income 495.5 619.0 24.9 506.1 472.8 -6.6 -10.6 146.2
General government 222.6 240.8 8.2 283.4 249.7 -11.9 -60.8 -8.8
Other sectors 272.9 378.1 38.6 222.7 223.1 0.2 50.2 155.0
Current taxes and subsidies 57.2 56.1 -1.9 109.3 109.2 0.0 -52.0 -53.1
Other current transfers 215.6 322.0 49.3 113.5 113.9 0.4 102.2 208.1
of which personal 111.1 121.6 9.5 45.4 45.3 -0.1 65.7 76.3
transfers
of which remittances 46.9 47.1 0.5 3.5 5.1 45.2 43.4 42.0
by workers
Capital account 228.5 386.3 69.0 3.1 156.1 4916.1 225.4 230.2
Table 3.2.1 Secondary income and the capital account (EUR millions)
14
The surplus on the capital account was the same in 2017 as a year earlier at 230 million. The
credit on the capital account was 386 million, and it was up 69% over the year. Several new
infrastructure projects were started, and Structural Funds from the European Union were used
to fund them. Companies again bought CO2 quotas in 2017 and so the debit on the capital
account increased to 156 million. [Estonia’s BOP, 2018]
3.3 Financial Account

The financial account of the
balance of payments shows that
investment abroad from Estonia
was 1 billion larger in 2017 than
investment in Estonia from abroad.
Net lending was larger than in Figure 3.3.1 Structure of the financial account by investment
categories
2016. The net capital outflow was
primarily a consequence of investments in foreign securities by pension funds. The net outflow
of investment through the banking system, which is credit institutions and Eesti Pank, was 1.2
billion, and it was due to structural changes at credit institutions and growth in client deposits.
Figure 3.3.1 shows the structure of the financial account by investment categories. [Estonia’s
BOP, 2018]
3.3.1 Direct investment

Direct investment in Estonia was 50% greater than in 2016 and was back to its level of a decade
earlier. The structure of investments showed that half of direct investment in Estonia by non-
residents, or 809 million, came in reinvested earnings. Large amounts were reinvested in 2017
by financial intermediaries, which reinvested 156 million, by wholesalers with 138 million,
and by telecommunications companies with 63 million. The biggest investments were of 603
million in financial intermediation, 64 million in telecommunications and 51 million in
programming, while equity investment was reduced in chemical production by 216 million.
The largest partners for direct investment transactions were Sweden, with 608 million, the
United Kingdom with 474 million, and the United Arab Emirates with 183 million. The inflow
of foreign investment was largest for companies providing financial and insurance services.
Direct investment in Estonia by members of the European Union increased by 1.2 billion, and
as at 31 December 2017 it stood at 17 billion, which is more than four fifths of all the direct
investment that has come to Estonia. [Estonia’s BOP, 2018]
15
3.4 Official Reserve Assets Account
Volume (EUR million)

2016 2017
Gold 0.0 0.0
SDRs -41.4 2.2
Reserve Position in the 39.2 -12.8
IMF
Cash and Deposits 13.9 -14.8
Securities -62.1 0.8
Financial Derivatives 2.3 0.9
Total -48.1 -23.6
Table 3.4.1 Structure of change in reserve assets
The reserve assets decreased by 48 million in 2016. At the end of the year reserve assets totalled
334 million. While in 2017, the reserve assets decreased by 24 million. At the end of the year
reserve assets totalled 288 million. In December 2017, the official reserve asset is the highest
which nearly 410k while in Feb 2016 is the lowest which is 348k. [Estonia's Balance of
Payments for 2017, 2018]
4.0 Identify the strengths and weakness of the Latvia’s balance of payments (in term of
import, export, investment, reserve and other macroeconomic factors).
4.1 Current Account
According to adjusted figures, Latvia’s current account surplus in 2016 was supported by the
positive balance of exports and imports in services and secondary income. Unfortunately,
Latvia’s current account was the only account that showed a deficit number in the balance of
payments in 2017. It was originally surplus at 342 million in 2016 but fell sharply to -204
million in 2017 mainly because there is a 684-million increase in the deficit on trade in goods
and a 120-million rise in the primary income deficit in 2017. [Balance of payments of Latvia,
2017]
16
4.1.1 Strength: Latvia’s best prospect industry sector ——Transportation Services
Due to Latvia's modest natural resource base and its strategic location between the EU and
large markets to the East, the transportation sector is one of the most important sectors in the
country. Transportation services in Latvia have experienced high growth in added value in
recent years. Latvia’s geography, infrastructure, proximity to Russia, and close ties with other
former Soviet-occupied countries are a unique asset for this sector. Latvia is also within the
Schengen area. As a result, this sector contributes more to the country’s GDP than the
manufacturing industry as a whole. [Latvia-Transportation Services, 2017]
4.1.2 Weakness: Increasing Deficit in Latvia’s Trade of General Merchandise from 2016
to 2017
The rise in the exports of cereals in 2017 as compared to 2016, was facilitated by an increase
in the exports of wheat and meslin by 29 million. In turn, a drop was experienced in the exports
of wood and articles of wood; wood charcoal as exports of fuelwood fell by 9.7 million or by
30.1%. [The Baltic Course, 2018]
The rise in the imports of machinery and mechanical appliances in 2017, as compared to 2016,
was facilitated by an increase in the imports of turbojets, turbo propellers and other gas turbines
by 30.4 million. In turn, a drop was experienced in the imports of mineral fuels, mineral oils
and products of their distillation, as the imports of natural gas in gaseous state dropped by
12.7 million or 41.2%. Overall, the import of general merchandises is higher than the export.
[The Baltic Course, 2018]
4.2 Capital Account

4.2.1 Strength: Capital Transfers for the General Government due to EU Region Policy
With a budget of 454 billion for 2014-2020, the European Structural and Investment Funds
(ESI Funds) are the European Union’s main investment policy tool. Through three national and
regional programmes, Latvia has been allocated 5.63 billion from ESI Funds over the period
2014-2020. With a national contribution of 1.27 billion, Latvia has a total budget of 6.9 billion
to be invested in various areas, from creating jobs and growth to promoting innovation as well
as protecting the environment and supporting social inclusion. [European Commission, 2014]
The positive balance of the capital account dropped by 38 million resulting from decreased
inflows of EU funds. [Linda Vecgaile, Economist, Latvijas Banka, 2016]
17
4.2.2 Weakness: Capital Transfer for Financing of households and non-financial
corporations
In 2016, the growth of NBFS lending was driven by the rise in household lending and the
expansion of operation of alternative investment funds. At the same time, the growth of
financial leasing was limited by delay in absorption of EU funds and a slowdown in economic
growth in the middle of the year (see Figure 4.2.2.1). The outstanding amount of loans granted
to non-bank households continues to outpace that of loans granted by credit institutions;
amendments to laws and regulations have contributed to more balanced NBFS lending growth.
Latvian non-financial corporations, particularly start-ups, more often use the risk capital as an
alternative source of funding for credit institutions or leasing companies. [Latvijas Banka
Eirosistema, 2017]
Figure 4.2.2.1 Annual Growth Rate of Domestic Loans Granted to Households and Non-Financial
Corporations by NBFS and their Ratio to Respective Loans Granted by Credit Institutions

4.3.1 Strength: portfolio investment
Latvia raised almost 650 million with long-term bond issue in May 2016. This deal refinanced
the country’s previous commitments and reduce public debt serving cost. More than 150
investors from several countries took part, with money came from Scandinavia, UK, Germany
and more [Broadcasting, 2016]. Foreign assets in the financial account grew faster (by 2 billion)
than the liabilities (by 1.5 billion) in 2016. The largest cross-border financial flows of the
private sector were related to contracting portfolio investment aboard. Additionally, the non-
resident deposit shrinkages at Latvian credit institution offset the outflows of deposits by
reducing their foreign assets. [Latvijas Banka: Annual Report 2016, 2016]
18
4.3.2 Weakness: other investment
The alleviating credit institutions’ foreign liabilities caused Latvia’s gross foreign debt rise
significantly, general government foreign debt experienced a temporary increase. The Treasury
engaged attraction of funds from foreign markets to refinance loan repayment projected for
2017. Under TARGET 2 system, the volume of euro outgoing external payments was higher
than the volume of euro incoming payment, which means an increment in foreign liabilities.
[Latvijas Banka: Annual Report 2016, 2016]
4.4 Macroeconomic factors

4.4.1 Strength: Unemployment rate
Along the economic situation improvement, the

labour market shown an upward trend in 2017. The
employment rate increased gradually by 1.6% over
the year, close to historical high, the registered
unemployment rate kept on declining as well
[Latvijas Banka: Annual Report 2017, 2018]. Figure 4.4.1.1 Unemployment Rate of Estonia
Besides that, along with the growth of labour
demand and fall in labour force supply, the unemployment rate also decreased significantly.
The heavy pressure from labour market demand side will continue in 2018 and cause a small
increase in the number of employees. The government can increase the economic productivity
by promoting economic transformation to ensure the growth in employment rate in labour
market. [Evaluation of growth of Latvian economy in 2017 and forecasts for 2018, 2018]
4.4.2 Weakness: Investment

The investment environment was negatively affected by the poor crediting, uncertainty
steaming from domestic economic policies and the external situation. The delays in the usage
of EU funds under the new programming period have led to postpone of investment in 2016
[Country Report Latvia 2017, 2017]. During the nine months of 2016, the investment in
construction decreased by 32%, comprising housing investment and construction of civil
engineering structure investment, compared to previous year’s corresponding period. [The
National Economy of Latvia Macroeconomic Review, 2016]
19
5.0 Identify the strengths and weakness of the Estonia’s balance of payments (in term of
import, export, investment, reserve and other macroeconomic factors).
5.1 Current Account

5.1.1 Strengths: Transportation Service
Transport services were provided abroad to a value of 1.8 billion in 2017, and exports of them
were up 12% if compared with 2016. Exports of transport services returned to their levels of a
couple of years earlier in 2017. The growth in the export of freight transport was 13%, while
exports of passenger transport grew by a very rapid 23%. Estonia has a liberal and flexible
economy system with an export of services that exceeds 95% of GDP. For the export of
services, transport by sea has the greatest importance, with the conveyance of goods and
passenger traffic both very significant parts of it. Transport is accompanied by extra services
that provide a significant portion of export income. [Eesti Pank, 2017]
5.1.2 Weakness: Normal Trade in Goods
The deficit in normal trade in goods was 2 billion, which was 23% more than in the previous
year. The biggest deficits were in transport vehicles, chemical products and machinery and
equipment, while surpluses were posted by wood and wood products and furniture, toys and
sporting goods. The deficit in transport vehicles was over 300 million more than in 2016, but
the main reason for this was a large one-off transaction to import a passenger ship. [Estonia
Economy Overview, 2017]
5.2 Capital Account

5.2.1 Strengths
The surplus on the capital account was the same in 2017 as a year earlier at 230 million. The
credit on the capital account was 386 million, and it was up 69% over the year. Several new
infrastructure projects were started, and Structural Funds from the European Union were used
to fund them. Companies again bought CO2 quotas in 2017 and so the debit on the capital
account increased to 156 million. The project, called Rail Baltic, is one of the biggest
investments in the years to come in improving the travel. Transport infrastructure is an asset
class that tends to be less volatile than equities over the long term and provides a higher yield.
20
5.3.1 Strengths: Official Reserve
The reserve assets decreased by 24 million in 2017. At the end of the year reserve assets totalled
288 million. [European Commission, 2014]
5.3.2 Weakness: Other Investment Assets

Other investment assets decreased by 744 million in 2017. Assets related to foreign deposits
declined by 951 million, mainly because of a fall in deposits at credit institutions and intra-
group transactions at other financial intermediaries. By countries, other investment assets to
Sweden, Denmark, Lithuania and Cyprus decreased the most. The group of countries and
institutions with the largest fall in assets was the group of non-euro area European Union
countries. [Estonia Debt Clock, 2018]
5.4 Macroeconomics Factor

5.4.1 Strengths: Employment
Employment has increased in spite of low economic activity, exceeding spring forecast
expectations. The number of employed persons increased by 2.6% in the second quarter of this
year and most of them were in the age group 50+. This is a result of increasing retirement age
for women, but also due to generally higher activity rate of pension aged persons. Employment
rate is at its historical high (65.8% in 2016), which in combination with declining working age
population restrains further increase in the number of employed persons. [Estonia’s BOP, 2018]
5.4.2 Weakness: Inflation

Interest rates on government bonds fell equally in nearly all the larger economic regions. The
general improvement in the economic environment was overshadowed in April by a temporary
sharpening of political and geopolitical tensions. The financial markets calmed down after the
French presidential elections however, and the spread of interest rates on French and German
government bonds narrowed noticeably. [European Commission, 2014].
6.0 Comparison between Latvia and Estonia

6.1 Current Account
According to our analysis on Latvia’s current account, in 2017 account there a deficit of 204
million. Latvia has shown a 684-million increase in the deficit on trade in goods which is falling
in 2017 even though up to until 2016, the good trading was at their peak. However, Latvia also
experiencing a surplus in their service trading which increasing up to 104 million. This can be
explained in one of Latvia’s strengths which is their transportation services that are supported
by their strategic locations that gives them high growth in added value in recent years.
21
While Estonia’s current account showed a surplus of 750.5 million in 2017 which are
contributed by the deficit reduction of 55.4 million in their trade in goods and the decrease in
the surplus of services trading of 248.1 million. Estonia also have their strengths lies on
transportation services. But unlike Latvia, Estonia transportation services focuses more on sea
transportation that provide a significant portion of export income of Estonia.
6.2 Capital Account

Latvia’s capital account is decreasing by a little bit in 2017 with 211 million. These results are
because of the capital transfers for the general government. Latvia has allocated some amount
of budget to hold a regional programme and these budgets are invested to create jobs promote
innovation as well as protecting the environment and supporting social inclusion.
As for Estonia’s capital account in 2017, they have the surplus of 230 million which is the same
as previous year. There are new infrastructure projects that are called Rail Baltic were started.
This project is a new long-term transportation project in Estonia that will provide a higher yield
in their capital account.

The financial account of Latvia fell up to -558 million in their direct investment and this is
because the low earnings that causes negative balance which makes the reinvested earnings of
Latvia is weak. The general government of Latvia experienced a rise in the gross foreign debt
due to the foreign liabilities of credit institutions. This force The Treasury to engaged attraction
of funds from foreign markets to refinance loan repayment of Latvia. However, Latvia’s
official reserve assets such as currency and deposit has increased from -67 million to -59
million in 2017.
As for Estonia, their financial account shows that they received 1 billion investments from
abroad. But aside from that, the other investment assets of Estonia have dramatically decreased
by 744 million euros in 2017. This is mainly because of a fall in deposits at credit institutions
and intra-group transactions at other financial intermediaries. Estonia’s official reserve assets
totalled of 288 million in 2017.
6.4 Macroeconomics Factor

The macroeconomics factor of Latvia is divided into strength and weakness. Their strength is
their increasing rate of employment. Latvia’s employment rate increased gradually over the
year and this has resulting government to increase the economic productivity by promoting
economic transformation to ensure the growth in employment rate in labour market. The
22
weakness is their investment. It was negatively affected by the poor crediting, uncertainty
steaming from domestic economic policies and the external situation that causes Latvia to
experience downfall.
While as for Estonia, their strength in the macroeconomics factor is the employment. Just like
Latvia, the employment rate has increased in spite of low economic activity. The increment of
retirement age for women and higher rate of pension has causes the employment rate to
increases. However, their weakness lies on the inflation. Due to political and geopolitical
tension, the interest rates on government bonds has fell in almost all economic region that
causes effect on Estonia’s inflation.
7.0 Conclusion
As for the conclusion, Latvia has shown a deficit of 204 million in the current account
compared to the surplus of 342 million in 2016. Next, Latvia’s capital account is also
decreasing compared to previous year. The capital account in 2017 is 211 million which is 38
million lesser than 2016 which is 249 million. Financial account of Latvia shows that the direct
investment fell really bad of -558 million in 2017 compared to only -4 million in 2016. Based
on these data, Latvia should improve on their export trading to balance their current account
since that they are importing general merchandise more than exporting anything out of the
country and causes deficit in their account. Next, Latvia also should do a better budget planning
of capital transfer for the household financing and loans for non-financial corporation so that
they will be able to recover the losses in the capital account.
As for Estonia, their current account shows a surplus of 750.5 million in 2017 which is
increasing by a lot compared to the surplus of 425 million in 2016. Next, on the capital account
of Estonia, the account was stable without increase or decrease at 230 million in both 2017 and
previous year, 2016. The financial account of Estonia shows that 1 billion larger investments
is made abroad from Estonia in 2017. Based on these data, Estonia should improve on their
good and services trading. This should be done especially in their transportation services which
is the biggest problem that causes deficit in their current account. Next, they should also
improve on their investment asset which are decreasing. This should be especially focus on
foreign deposits to other countries such as Sweden, Denmark, Lithuania and Cyprus.
Improving these investment deposit will help to balance Estonia’s financial account.
23
8.0 References
• Broadcasting, L. P. (2016, May 11). Latvia raises €650m with long-term bond issue.
Retrieved from Public broadcasting of Latvia:
https://eng.lsm.lv/article/economy/economy/latvia-raises-650m-with-long-term-bond-
issue.a182245/
• Chepkemoi, J. (2017, July 14). What is the Currency of Estonia? Retrieved from:
https://www.worldatlas.com/articles/what-is-the-currency-of-estonia.html
• Country Report Latvia 2017. (2017, February 22). Retrieved from:
https://ec.europa.eu/info/sites/info/files/2017-european-semester-country-report-latvia-
en.pdf
• Doe, J. (2018, May 07). Population: Demographic Situation, Languages and Religions.
Retrieved from: https://eacea.ec.europa.eu/national-policies/eurydice/content/population-
demographic-situation-languages-and-religions-40_en
• Economy. (2015, November 11). Retrieved from: http://www.latvia.eu/economy
• Eesti Pank. (2017, June 08). The current account of the Estonian balance of payments was
in surplus in the first quarter. Retrieved from: https://www.eestipank.ee/en/press/current-
account-estonian-balance-payments-was-surplus-first-quarter-08062017
• Estonia Debt Clock. (2018). What Is the National Debt of Estonia? Retrieved from:
https://www.nationaldebtclocks.org/debtclock/estonia
• Estonian Economy Overview. (2017, June 16). Retrieved from: https://vm.ee/en/estonian-
economy-overview
• European Commission. (2014). European Structural and Investment Funds. Retrieved from
European Commission:
https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-
factsheet/esi_funds_country_factsheet_lv_en.pdf
• Evaluation of growth of Latvian economy in 2017 and forecast for 2018. (2018, March 21).
Retrieved from Ministry of Economics: https://www.em.gov.lv/en/news/18508-
evaluation-of-the-growth-of-latvian-economy-in-2017-and-forecasts-for-2018
• Foreign Trade Statistics. (2017). Investment and Development Agent of Latvia. Retrieved
from LIAA: http://www.liaa.gov.lv/en/trade/foreign-trade-statistics
24
• Köörna, A. A., Smogorzewski, K. M., Bater, J. H., Misiunas, R. J., Tarmisto, V. J., & Aruja,
E. (2018, November 20). Estonia. Retrieved from:
https://www.britannica.com/place/Estonia#ref37274
• Latvia-Transportation Services. (2017, November 8). Latvia Country Commercial Guide.
Retrieved from export.gov: https://www.export.gov/article?id=Latvia-Transportation-and-
Services
• Latvijas Banka Eirosistema. (2017). Financial Stability Report 2017. Retrieved from:
https://www.bank.lv/images/stories/pielikumi/publikacijas/FSR_2017_EN.pdf
• LATVIJAS BANKA EIROSISTEMA. (2017). LATVIA'S BALANCE OF PAYMENTS
FOR 2017. Retrieved from:
https://www.bank.lv/images/stories/pielikumi/publikacijas/LMB_2017.pdf
• Latvijas Banka: Annual Report 2016. LATVIA. Retrieved from:
https://www.bank.lv/images/stories/pielikumi/parlatvijasbanku/gada_parskati/LB_AR_20
16_en.pdf
• Latvijas Banka: Annual Report 2017. (2018, April 27). Retrieved from:
https://www.bank.lv/images/stories/pielikumi/parlatvijasbanku/gada_parskati/LB_AR_20
17_en.pdf
• Linda Vecgaile, Economist, Latvijas Banka. (2016, September 2). In the second quarter of
2016, the current account deficit was 37.2 mil. euro. Retrieved from:
https://www.macroeconomics.lv/second-quarter-2016-current-account-deficit-was-372-
mil-euro
• OECD Economic Surveys Latvia. (2017, September). Retrieved from:
https://www.oecd.org/economy/surveys/Latvia-2017-OECD-economic-survey-
overview.pdf
• The Baltic Course (2017, September 28). Estonia's 2016 current account surplus was
biggest since regaining of independence. Retrieved from: http://www.baltic-
course.com/eng/finances/?doc=133604
• The Baltic Course. (2018, February 9). In 2017, foreign trade turnover in Latvia rose by
12.4%. Retrieved from The Baltic Course: http://www.baltic-
course.com/eng/good_for_business/?doc=137569
25
9.0 Appendix of Latvia’s Balance of Payments
LATVIJAS MAKSĀJUMU BILANCE. ANALĪTISKIE RĀDĪTĀJI (LATVIA'S

BALANCE OF PAYMENTS. ANALYTICAL INDICATORS)
Postenis 2013 2014 2015 2016 2017 Components
Tekošais konts (% no IKP) –2.7 –1.7 –0.5 1.4 –0.8 Current account (% of GDP)
Ārējais parāds (bruto; % no IKP) 133.6 143.7 143.4 148.8 140.9 External debt (gross; % of GDP)
Ārējais parāds (neto; % no IKP) 36.5 33.6 29.2 28.8 24.4 External debt (net; % of GDP)
Tiešās investīcijas Latvijā 3.0 2.5 2.6 0.5 2.4 Direct investment in Latvia
(darījumi; % no IKP) (transactions; % of GDP)
Tiešās investīcijas Latvijā (atlikums 50.7 52.4 55.6 54.0 53.5 Direct investment in Latvia (closing
perioda beigās; % no IKP) position; % of GDP)
2. LATVIJAS MAKSĀJUMU BILANCE (LATVIA'S BALANCE OF PAYMENTS)

(milj. eiro)
(millions of euro)
Postenis Kods 2013 2014 2015 2016 2017 Components
Code
TEKOŠAIS KONTS N 10000 –622 –410 –116 342 –204 CURRENT ACCOUNT
PRECES N 10020 –2 620 –2 380 –2 202 –1 918 –2 602 GOODS
Kredīts (eksports) C 10020 9 810 10 242 10 336 10 391 11 350 Credit (export)
Vispārējās nozīmes preces C 10040 9 743 10 137 10 272 10 270 11 287 General merchandise
Preču neto eksports C 10240 31 71 26 85 56 Net exports of goods under

tirdzniecības starpniecības merchanting
darījumos
Nemonetārais zelts C 10300 36 34 38 36 6 Nonmonetary gold
Debets (imports) D 10020 12 430 12 621 12 538 12 309 13 951 Debit (import)
Vispārējās nozīmes preces D 10040 12 407 12 599 12 528 12 290 13 946 General merchandise
Nemonetārais zelts D 10300 23 23 10 19 5 Nonmonetary gold
PAKALPOJUMI N 10340 1 773 2 038 2 078 2 141 2 245 SERVICES
Kredīts (eksports) C 10340 3 900 4 104 4 355 4 575 4 890 Credit (export)
Ražošanas pakalpojumi C 10360 97 31 24 32 23 Manufacturing services
Remonta pakalpojumi C 10380 48 30 32 26 27 Repair services
Transporta pakalpojumi C 10400 1 682 1 864 1 932 1 908 2 067 Transport
Jūras transports C 10420 428 398 431 401 420 Sea transport
Pasažieri C 10440 0 0 0 0 0 Passenger
Kravas C 10460 82 72 85 88 79 Freight
Citi C 10480 346 326 345 313 340 Other
Gaisa transports C 10500 266 283 386 416 456 Air transport
Kravas C 10540 9 10 13 9 10 Freight
Citi C 10560 36 37 42 44 48 Other
Dzelzceļa transports C 10580 417 415 388 316 291 Rail transport
Kravas C 10620 337 339 330 263 244 Freight
Citi C 10640 69 67 52 48 42 Other
Autotransports C 10660 525 713 680 738 855 Road transport
26
Kravas C 10700 483 681 652 714 825 Freight
Citi C 10720 29 19 17 19 23 Other
Citi transporta pakalpojumi, C 10730 46 54 47 36 46 Other modes of transport,

pasta un kurjeru pakalpojumi postal and courier services
Braucieni C 10820 651 719 807 783 782 Travel
Darījumu C 10840 154 150 168 131 135 Business
Personiskie C 10900 496 569 639 652 647 Personal
Būvniecība C 10980 122 159 123 193 267 Construction
Apdrošināšanas un pensiju C 11040 22 2 2 3 5 Insurance and pension services

pakalpojumi
Finanšu pakalpojumi C 11240 363 416 461 445 370 Financial services
Finanšu pakalpojumi, par C 11260 264 288 330 340 282 Explicitly charged and other
kuriem maksā tieši financial services
Netieši novērtētie finanšu C 11280 100 127 131 105 88 Financial intermediation
starpniecības pakalpojumi services indirectly measured
(NNFSP) (FISIM)
Citur neiekļauta maksa par C 11300 9 4 5 5 6 Charges for the use of

intelektuālā īpašuma intellectual property n.i.e.
izmantošanu
Telesakaru pakalpojumi C 11340 96 94 104 209 195 Telecommunications services

Code
Datorpakalpojumi un C 11350 185 197 257 324 425 Computer and information
informācijas pakalpojumi services
Citi saimnieciskās darbības C 11440 577 537 556 590 648 Other business services
pakalpojumi
Individuālie, kultūras un atpūtas C 11920 20 13 15 16 33 Personal, cultural and

pakalpojumi recreational services
Citur neiekļautās valdības C 12060 29 37 36 40 41 Government goods and services

preces un pakalpojumi n.i.e.
Debets (imports) D 10340 2 127 2 066 2 276 2 433 2 645 Debit (import)
Ražošanas pakalpojumi D 10360 0 2 2 5 6 Manufacturing services
Remonta pakalpojumi D 10380 7 3 18 24 33 Repair services
Transporta pakalpojumi D 10400 653 650 739 721 806 Transport
Jūras transports D 10420 149 126 123 128 152 Sea transport
Pasažieri D 10440 45 25 18 20 29 Passenger
Kravas D 10460 83 85 88 89 103 Freight
Citi D 10480 20 15 17 19 19 Other
Gaisa transports D 10500 222 232 316 303 328 Air transport
Kravas D 10540 55 59 54 62 77 Freight
Citi D 10560 78 74 121 100 113 Other
Dzelzceļa transports D 10580 82 88 101 78 74 Rail transport
Kravas D 10620 55 58 64 53 51 Freight
Citi D 10640 27 30 37 25 23 Other
Autotransports D 10660 190 194 187 200 230 Road transport
Kravas D 10700 166 174 168 182 212 Freight
Citi D 10720 21 13 11 12 12 Other
27
Citi transporta pakalpojumi, D 10730 10 11 12 12 23 Other modes of transport,
pasta un kurjeru pakalpojumi postal and courier services
Braucieni D 10820 538 537 554 628 639 Travel
Darījumu D 10840 118 115 113 126 122 Business
Personiskie D 10900 420 421 441 502 517 Personal
Būvniecība D 10980 66 59 41 20 42 Construction
Apdrošināšanas un pensiju D 11040 28 15 20 9 4 Insurance and pension services

pakalpojumi
Finanšu pakalpojumi D 11240 180 145 162 163 195 Financial services
Finanšu pakalpojumi, par D 11260 104 69 78 85 116 Explicitly charged and other
kuriem maksā tieši financial services
Netieši novērtētie finanšu D 11280 75 76 84 78 79 Financial intermediation

starpniecības pakalpojumi services indirectly measured
(NNFSP) (FISIM)
Citur neiekļauta maksa par D 11300 37 33 30 33 40 Charges for the use of

intelektuālā īpašuma intellectual property n.i.e.
izmantošanu
Telesakaru pakalpojumi D 11340 73 71 80 151 117 Telecommunications services
Datorpakalpojumi un D 11350 103 95 113 131 163 Computer and information

informācijas pakalpojumi services
Citi saimnieciskās darbības D 11440 410 425 487 521 567 Other business services
pakalpojumi
Individuālie, kultūras un atpūtas D 11920 19 15 13 14 18 Personal, cultural and

pakalpojumi recreational services
Citur neiekļautās valdības D 12060 14 16 17 13 14 Government goods and services

preces un pakalpojumi n.i.e.
SĀKOTNĒJIE IENĀKUMI N 12140 –74 –84 –137 –62 –182 PRIMARY INCOME
Kredīts C 12140 1 236 1 174 1 318 1 398 1 445 Credit
Atlīdzība nodarbinātajiem C 12160 574 704 667 615 570 Compensation of employees
Ieguldījumu ienākumi C 12220 330 264 409 422 540 Investment income
Tiešās investīcijas C 12240 85 54 155 119 200 Direct investment
Pašu kapitāls C 12260 66 35 132 95 180 Equity
Dividendes C 12280 23 28 79 69 138 Dividends
Reinvestētā peļņa C 12380 43 7 53 25 42 Reinvested earnings
Parāda instrumenti C 12480 19 19 22 24 20 Debt instruments
Portfeļieguldījumi C 12580 107 133 175 193 192 Portfolio investment
Biržas sarakstā iekļautās un C 12600 7 8 9 11 16 Listed and unlisted shares

neiekļautās akcijas un and investment fund shares
ieguldījumu fondu or units
ieguldījumu apliecības
Parāda vērtspapīri C 12820 100 125 166 182 176 Debt securities
Īstermiņa C 12840 0 1 1 1 0 Short-term
Ilgtermiņa C 12980 100 124 165 181 175 Long-term

Code
Citi ieguldījumi C 13120 86 52 48 63 78 Other investment
Izmaksas no C 13140 0 0 4 5 5 Withdrawals from income

kvazikorporāciju of quasi-corporations
ienākumiem
Procenti C 13280 86 52 44 58 73 Interest
Polišu turētāju ieguldījumu C 13460 0 0 0 0 0 Investment income

ienākumi attributable to policyholders
Rezerves aktīvi C 13600 52 25 32 47 70 Reserve assets
Citi sākotnējie ienākumi C 13660 332 206 241 361 335 Other primary income
28
Valdība C 13680 332 206 241 361 335 General government
Finanšu un nefinanšu C 13840 0 0 0 0 0 Financial and non-financial

sabiedrības, mājsaimniecības corporations, households
Debets D 12140 1 310 1 258 1 455 1 460 1 626 Debit
Atlīdzība nodarbinātajiem D 12160 52 49 56 55 62 Compensation of employees
Ieguldījumu ienākumi D 12220 1 204 1 173 1 359 1 347 1 508 Investment income
Tiešās investīcijas D 12240 825 801 1 053 1 072 1 255 Direct investment
Pašu kapitāls D 12260 773 737 989 1 020 1 192 Equity
Dividendes D 12280 541 504 561 549 912 Dividends
Reinvestētā peļņa D 12380 232 233 429 471 280 Reinvested earnings
Parāda instrumenti D 12480 52 64 64 52 63 Debt instruments
Portfeļieguldījumi D 12580 130 183 183 173 156 Portfolio investment
Biržas sarakstā iekļautās un D 12600 3 12 8 9 13 Listed and unlisted shares

neiekļautās akcijas un and investment fund shares
ieguldījumu fondu or units
Parāda vērtspapīri D 12820 128 172 175 164 142 Debt securities
Īstermiņa D 12840 0 0 0 0 0 Short-term
Ilgtermiņa D 12980 127 171 175 164 142 Long-term
Citi ieguldījumi D 13120 249 190 122 102 98 Other investment
Izmaksas no D 13140 0 1 4 0 1 Withdrawals from income

kvazikorporāciju of quasi-corporations
ienākumiem
Procenti D 13280 249 189 119 102 97 Interest
Polišu turētāju ieguldījumu D 13460 0 0 0 0 0 Investment income

ienākumi attributable to policyholders
Citi sākotnējie ienākumi D 13660 54 36 40 57 56 Other primary income
Valdība D 13680 54 36 40 50 49 General government
Finanšu un nefinanšu D 13840 0 0 0 7 7 Financial and non-financial

OTRREIZĒJIE IENĀKUMI N 14000 299 15 145 180 334 SECONDARY INCOME
Kredīts C 14000 1 084 813 903 905 1 052 Credit
Debets D 14000 785 798 758 725 718 Debit
KAPITĀLA KONTS N 20000 573 754 675 249 211 CAPITAL ACCOUNT
Kredīts C 20000 578 758 680 262 219 Credit
Neproducēto nefinanšu aktīvu C 20020 2 2 0 0 2 Gross acquisitions/disposals of

bruto iegāde/atsavināšana non-produced non-financial
assets
Kapitāla pārvedumi C 20040 576 756 680 262 217 Capital transfers

Debets D 20000 5 5 5 13 8 Debit
Neproducēto nefinanšu aktīvu D 20020 1 0 0 0 1 Gross acquisitions/disposals of

bruto iegāde/atsavināšana non-produced non-financial
assets
Kapitāla pārvedumi D 20040 5 4 5 13 7 Capital transfers
29

FINANŠU KONTS N 30000 232 659 –144 443 201 FINANCIAL ACCOUNT
TIEŠĀS INVESTĪCIJAS N 30020 –370 –295 –624 –4 –558 DIRECT INVESTMENT
Aktīvi N 30020 A 373 409 127 217 438 Assets
Pašu kapitāls (izņemot N 30090 220 309 –45 66 98 Equity (excl. reinvested
reinvestēto peļņu) earnings)
Prasības pret tiešo investīciju N 30100 232 298 –39 66 92 Claims on direct investment
uzņēmumiem enterprises

Code
Prasības pret tiešajiem N 30600 –12 12 –6 0 5 Claims on direct investors

investoriem
Reinvestētā peļņa N 30260 43 7 53 25 42 Reinvested earnings
Parāda instrumenti N 30410 111 93 119 126 298 Debt instruments
Prasības pret tiešo investīciju N 30440 30 –24 8 55 –28 Claims on direct investment
Prasības pret tiešajiem N 30980 38 14 75 23 289 Claims on direct investors

investoriem
Prasības pret māsas N 30460 0 24 –13 –6 –13 Claims on fellow enterprises

uzņēmumiem, ja galvenais if ultimate controlling parent
kontrolējošais investors ir is resident
rezidents
Prasības pret māsas N 31000 43 79 49 54 50 Claims on fellow enterprises

uzņēmumiem, ja galvenais if ultimate controlling parent
kontrolējošais investors ir is non-resident
nerezidents
Pasīvi N 30020 L 744 704 751 221 996 Liabilities
Pašu kapitāls (izņemot N 30590 538 470 198 –485 984 Equity (excl. reinvested
reinvestēto peļņu) earnings)
Saistības pret tiešo investīciju N 30200 0 0 0 0 0 Liabilities to direct investment

Saistības pret tiešajiem N 30680 538 470 198 –485 984 Liabilities to direct investors
investoriem
Parāda instrumenti N 30950 –26 1 125 235 –267 Debt instruments
Saistības pret tiešo investīciju N 30500 –6 11 –3 9 10 Liabilities to direct investment

Saistības pret tiešajiem N 31040 –45 10 134 81 –25 Liabilities to direct investors
investoriem
Saistības pret māsas N 30520 0 1 –4 1 2 Liabilities to fellow

uzņēmumiem, ja galvenais enterprises, if ultimate
kontrolējošais investors ir controlling parent is resident
rezidents
Saistības pret māsas N 31060 25 –21 –3 145 –254 Liabilities to fellow

uzņēmumiem, ja galvenais enterprises, if ultimate
kontrolējošais investors ir controlling parent is non-
nerezidents resident
PORTFEĻIEGULDĪJUMI N 31080 194 –52 2 111 912 2 235 PORTFOLIO INVESTMENT
Aktīvi N 31100 468 1 616 2 215 1 876 2 255 Assets
Biržas sarakstā iekļautās un N 31120 82 112 35 132 555 Listed and unlisted shares and
neiekļautās akcijas un investment fund shares or units
ieguldījumu fondu ieguldījumu
apliecības
Centrālā banka N 31140 0 0 3 0 0 Central bank
MFI (izņemot centrālo banku) N 31160 13 –16 –1 –92 0 MFIs (excl. central bank)
Valdība N 31180 0 0 0 0 0 General government
30
Finanšu sabiedrības (izņemot N 31220 52 110 16 248 522 Financial corporations (excl.
MFI) MFIs)
Nefinanšu sabiedrības un N 31240 16 19 17 –25 33 Non-financial corporations

mājsaimniecības and households
Parāda vērtspapīri N 31260 387 1 504 2 180 1 744 1 700 Debt securities
Centrālā banka N 31280 0 –17 857 2 729 1 638 Central bank
Īstermiņa N 31300 0 –9 0 25 –23 Short-term
Ilgtermiņa N 31320 0 –8 857 2 704 1 661 Long-term
MFI (izņemot centrālo banku) N 31340 202 1 466 1 021 –1 291 –263 MFIs (excl. central bank)
Īstermiņa N 31360 10 357 109 –412 –34 Short-term
Ilgtermiņa N 31380 193 1 109 911 –879 –230 Long-term
Valdība N 31400 53 –41 –16 2 –1 General government
Īstermiņa N 31420 0 0 0 0 0 Short-term
Ilgtermiņa N 31440 53 –41 –16 2 –1 Long-term
MFI) MFIs)
Īstermiņa N 31500 –1 0 2 –43 –19 Short-term
Ilgtermiņa N 31560 110 95 286 317 349 Long-term
Nefinanšu sabiedrības un N 31510 23 0 29 31 –4 Non-financial corporations

Īstermiņa N 31520 0 0 0 –1 0 Short-term
Ilgtermiņa N 31580 23 0 29 32 –5 Long-term
Pasīvi N 31600 275 1 668 103 964 20 Liabilities
Biržas sarakstā iekļautās un N 31620 36 44 107 –24 4 Listed and unlisted shares and
apliecības
MFI (izņemot centrālo banku) N 31660 6 29 77 1 –1 MFIs (excl. central bank)

Code
Finanšu sabiedrības (izņemot N 31760 25 11 25 –22 11 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 31820 5 3 6 –4 –6 Non-financial corporations

Parāda vērtspapīri N 31880 238 1 624 –4 989 15 Debt securities
MFI (izņemot centrālo banku) N 31960 132 113 108 8 0 MFIs (excl. central bank)
Īstermiņa N 31980 –17 7 –6 –2 0 Short-term
Valdība N 32020 –78 1 629 –148 979 18 General government
Īstermiņa N 32040 9 –4 –6 0 0 Short-term
Ilgtermiņa N 32060 –87 1 633 –143 979 18 Long-term
Finanšu sabiedrības (izņemot N 32110 159 –116 3 –10 4 Financial corporations (excl.
MFI) MFIs)
Ilgtermiņa N 32180 159 –116 3 –10 4 Long-term
Nefinanšu sabiedrības un N 32130 25 –1 33 12 –7 Non-financial corporations

31
Ilgtermiņa N 32200 25 –1 33 12 –7 Long-term
ATVASINĀTIE FINANŠU N 32220 –208 160 188 202 –493 FINANCIAL DERIVATIVES
INSTRUMENTI
Aktīvi N 32240 –444 –166 –377 –282 –702 Assets
Centrālā banka N 32260 –444 –161 –290 –273 –505 Central bank
Valdība N 32300 –3 –1 –90 –9 –124 General government
Finanšu sabiedrības (izņemot N 32340 3 –4 2 0 0 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 32360 1 0 0 0 –9 Non-financial corporations and

mājsaimniecības households
Pasīvi N 32380 –236 –326 –566 –484 –209 Liabilities
Centrālā banka N 32400 –228 –298 –535 –458 –181 Central bank
Finanšu sabiedrības (izņemot N 32480 0 –4 –1 0 0 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 32500 0 0 0 0 –1 Non-financial corporations and

CITI IEGULDĪJUMI N 32520 223 962 –2 130 –791 –1 875 OTHER INVESTMENT
Aktīvi N 32540 –2 1 739 –2 700 193 –163 Assets
Cits pašu kapitāls N 32560 0 159 50 62 48 Other equity

MFI) MFIs)
Nefinanšu sabiedrības un N 32680 0 0 0 0 –4 Non-financial corporations

Nauda un noguldījumi N 32700 –54 1 506 –3 048 –91 –330 Currency and deposits
Centrālā banka N 32720 0 –1 015 406 418 399 Central bank
Īstermiņa N 32740 0 –1 179 406 418 399 Short-term
MFI (izņemot centrālo banku) N 32780 –146 2 199 –3 233 –955 –803 MFIs (excl. central bank)
Īstermiņa N 32800 –169 2 205 –3 198 –947 –851 Short-term
Ilgtermiņa N 32860 23 –6 –35 –9 48 Long-term
Valdība N 32920 125 273 –398 400 147 General government
Īstermiņa N 32940 125 273 –398 400 147 Short-term
Finanšu sabiedrības (izņemot N 33010 –16 31 81 –72 –6 Financial corporations (excl.

MFI) MFIs)
Īstermiņa N 33020 –16 31 81 –72 –6 Short-term
Nefinanšu sabiedrības un N 33030 –17 18 96 118 –67 Non-financial corporations

Īstermiņa N 33040 –17 18 96 118 –67 Short-term
Aizdevumi N 33120 76 58 –76 20 –204 Loans
32
Code
Īstermiņa N 33220 42 7 146 10 –68 Short-term
Ilgtermiņa N 33240 257 23 –112 34 –129 Long-term
Īstermiņa N 33280 –6 –11 –3 –13 0 Short-term
Ilgtermiņa N 33300 –28 –15 –28 –58 –2 Long-term
Finanšu sabiedrības (izņemot N 33350 –258 77 –74 25 –32 Financial corporations (excl.
MFI) MFIs)
Īstermiņa N 33360 5 –75 2 –51 –45 Short-term
Ilgtermiņa N 33420 –263 152 –76 76 13 Long-term
Nefinanšu sabiedrības un N 33370 68 –23 –6 21 27 Non-financial corporations

Īstermiņa N 33380 23 10 –9 15 30 Short-term
Ilgtermiņa N 33440 45 –34 4 7 –3 Long-term
Apdrošināšanas, pensiju un N 33460 0 0 0 18 3 Insurance, pension and

standarta garantijas standardised guarantees

MFI) MFIs)
Nefinanšu sabiedrības un N 33580 0 0 0 0 0 Non-financial corporations

Tirdzniecības kredīti un avansi N 33600 39 –36 364 250 356 Trade credits and advances
Finanšu sabiedrības (izņemot N 33620 –8 –1 10 23 8 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 33640 47 –35 353 227 348 Non-financial corporations

Citi aktīvi N 33660 –63 53 11 –66 –36 Other assets
Centrālā banka N 33680 –1 37 –7 –12 12 Central bank
MFI (izņemot centrālo banku) N 33740 –35 –20 62 –65 –17 MFIs (excl. central bank)
Valdība N 33800 –1 3 –4 –2 0 General government
Finanšu sabiedrības (izņemot N 33890 13 39 –39 11 –20 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 33910 –40 –5 0 3 –10 Non-financial corporations

Pasīvi N 34000 –225 777 –570 984 1 712 Liabilities
Cits pašu kapitāls N 34020 –1 3 –6 0 2 Other equity

MFI) MFIs)
Nefinanšu sabiedrības un N 34180 –1 3 –6 0 2 Non-financial corporations

Nauda un noguldījumi N 34240 –41 1 725 491 1 176 1 138 Currency and deposits
Centrālā banka N 34260 –11 1 043 925 4 387 1 449 Central bank
Īstermiņa N 34280 –11 1 043 925 4 387 1 449 Short-term
MFI (izņemot centrālo banku) N 34320 –29 682 –434 –3 212 –311 MFIs (excl. central bank)
33
Īstermiņa N 34340 1 540 1 455 490 –3 060 –81 Short-term
Ilgtermiņa N 34400 –1 569 –773 –924 –152 –231 Long-term
Aizņēmumi N 34660 –152 –1 037 –1 261 –584 582 Loans
SVF kredītu un aizdevumu N 34700 0 0 0 0 0 Use of IMF credit and loans

izmantošana
Citi īstermiņa N 34720 0 0 0 0 0 Other short-term
Citi ilgtermiņa N 34740 0 0 0 0 0 Other long-term
Valdība N 34820 –94 –1 132 –1 385 –171 –84 General government
SVF kredītu un aizdevumu N 34840 0 0 0 0 0 Use of IMF credit and loans

izmantošana
Citi īstermiņa N 34860 0 0 0 0 0 Other short-term
Citi ilgtermiņa N 34880 –94 –1 132 –1 385 –171 –84 Other long-term
Finanšu sabiedrības (izņemot N 34930 –171 25 81 –427 –218 Financial corporations (excl.
MFI) MFIs)
Īstermiņa N 34940 6 –12 –21 –8 –87 Short-term
Ilgtermiņa N 35000 –177 38 103 –419 –131 Long-term

Code

Īstermiņa N 34960 43 46 109 17 –8 Short-term
Ilgtermiņa N 35020 70 24 –66 –3 892 Long-term
Apdrošināšanas, pensiju un N 35040 0 0 0 15 –10 Insurance, pension and

Finanšu sabiedrības (izņemot N 35140 0 0 0 15 –10 Financial corporations (excl.

MFI) MFIs)

Tirdzniecības kredīti un avansi N 35180 –161 83 162 377 16 Trade credits and advances
Finanšu sabiedrības (izņemot N 35200 2 –1 –1 19 37 Financial corporations (excl.

MFI) MFIs)
Nefinanšu sabiedrības un N 35220 –163 83 163 358 –21 Non-financial corporations

Citi pasīvi N 35240 130 4 44 –1 –16 Other liabilities
Centrālā banka N 35260 1 –2 1 4 –3 Central bank
MFI (izņemot centrālo banku) N 35320 106 2 19 –18 –15 MFIs (excl. central bank)
Valdība N 35380 –4 –1 0 0 –1 General government
Finanšu sabiedrības (izņemot N 35470 27 –11 19 8 –1 Financial corporations (excl.

MFI) MFIs)

Speciālās aizņēmuma tiesības N 35580 0 0 0 0 0 Special Drawing Rights
REZERVES AKTĪVI N 35600 393 –116 311 124 892 RESERVE ASSETS
34
Monetārais zelts N 35620 0 –32 0 0 0 Monetary gold
Speciālās aizņēmuma tiesības N 35680 21 0 0 0 0 Special Drawing Rights
Rezerves pozīcija SVF N 35700 0 0 0 0 0 Reserve position in the IMF
Citi rezerves aktīvi N 35720 371 –84 311 124 892 Other reserve assets
Nauda un noguldījumi N 35740 186 29 –11 –67 –59 Currency and deposits
Vērtspapīri N 35800 185 –113 322 192 950 Securities
Atvasinātie finanšu instrumenti N 35900 0 0 0 0 0 Financial derivatives
Citas prasības N 35920 0 0 0 0 0 Other claims
NOVIRZE N 40000 280 316 –703 –148 194 NET ERRORS AND OMISSIONS
35
3. LATVIJAS STARPTAUTISKO INVESTĪCIJU BILANCE (LATVIA'S
INTERNATIONAL INVESTMENT POSITION)
(atlikums perioda beigās; milj. eiro)
(closing position; millions of euro)
Postenis Kods Code 2013 2014 2015 2016 2017 Components
AKTĪVI 30000 A 24 594 28 862 31 107 33 760 35 607 ASSETS
TIEŠĀS INVESTĪCIJAS 30020 A 1 932 2 050 2 322 2 485 2 837 DIRECT INVESTMENT
Pašu kapitāls 30070 840 814 958 1 016 1 093 Equity
Prasības pret tiešo investīciju 30090 829 790 939 1 003 1 079 Claims on direct investment
Prasības pret tiešajiem 30600 11 24 19 13 14 Claims on direct investors

investoriem
Parāda instrumenti 30410 1 091 1 236 1 364 1 469 1 745 Debt instruments
Prasības pret tiešo investīciju 30440 358 337 378 446 444 Claims on direct investment
Prasības pret tiešajiem 30980 576 571 625 627 882 Claims on direct investors
investoriem
Prasības pret māsas 30460 0 54 47 52 27 Claims on fellow enterprises, if

uzņēmumiem, ja galvenais ultimate controlling parent is
kontrolējošais investors ir resident
rezidents
Prasības pret māsas 31000 158 275 314 343 392 Claims on fellow enterprises, if
uzņēmumiem, ja galvenais ultimate controlling parent is
kontrolējošais investors ir non-resident
nerezidents
PORTFEĻIEGULDĪJUMI 31100 4 157 7 868 11 076 13 440 15 277 PORTFOLIO INVESTMENT
Biržas sarakstā iekļautās un 31120 1 226 1 403 1 473 1 830 2 513 Listed and unlisted shares and
apliecības
Centrālā banka 31140 28 28 31 32 30 Central bank
MFI (izņemot centrālo banku) 31160 65 36 37 41 22 MFIs (excl. central bank)
Valdība 31180 0 0 0 0 0 General government
Finanšu sabiedrības (izņemot 31220 918 1 094 1 128 1 464 2 121 Financial corporations (excl.
MFI) MFIs)
Nefinanšu sabiedrības un 31240 216 245 277 294 340 Non-financial corporations and
Parāda vērtspapīri 31260 2 930 6 465 9 603 11 610 12 764 Debt securities
Centrālā banka 31280 0 1 793 3 224 6 099 7 610 Central bank
Īstermiņa 31300 0 0 0 27 3 Short-term
Ilgtermiņa 31320 0 1 793 3 224 6 072 7 607 Long-term
MFI (izņemot centrālo banku) 31340 2 134 3 811 5 209 3 927 3 281 MFIs (excl. central bank)
Ilgtermiņa 31380 2 056 3 347 4 599 3 774 3 167 Long-term
Ilgtermiņa 31440 59 18 2 4 3 Long-term
Finanšu sabiedrības (izņemot 31490 602 702 995 1 363 1 669 Financial corporations (excl.
MFI) MFIs)
Ilgtermiņa 31560 602 702 993 1 340 1 665 Long-term
36
ATVASINĀTIE FINANŠU 32240 80 103 370 415 106 FINANCIAL DERIVATIVES

INSTRUMENTI
Finanšu sabiedrības (izņemot 32340 9 0 0 0 0 Financial corporations (excl.

MFI) MFIs)

CITI IEGULDĪJUMI 32540 12 643 16 183 14 175 14 086 13 536 OTHER INVESTMENT
Cits pašu kapitāls 32560 64 246 292 352 401 Other equity

MFI) MFIs)

Nauda un noguldījumi 32700 7 915 11 023 8 374 8 221 7 685 Currency and deposits
Īstermiņa 32740 0 3 099 3 505 3 924 4 323 Short-term
Īstermiņa 32800 4 613 7 103 4 290 3 328 2 256 Short-term

MFI) MFIs)
Nefinanšu sabiedrības un 33030 3 117 156 253 357 280 Non-financial corporations and
Īstermiņa 33040 3 117 156 253 357 280 Short-term
Aizdevumi 33120 2 876 2 998 3 110 3 049 2 596 Loans
MFI) MFIs)
37
Apdrošināšanas, pensiju un 33460 0 0 0 29 32 Insurance, pension and


MFI) MFIs)

Tirdzniecības kredīti un avansi 33600 1 463 1 545 2 022 2 100 2 536 Trade credits and advances

MFI) MFIs)
Nefinanšu sabiedrības un 33640 1 440 1 521 1 990 2 044 2 481 Non-financial corporations and
Citi aktīvi 33660 324 371 377 335 287 Other assets
MFI) MFIs)

REZERVES AKTĪVI 35600 5 783 2 658 3 165 3 334 3 851 RESERVE ASSETS
Monetārais zelts 35620 218 211 208 234 231 Monetary gold
Speciālās aizņēmuma tiesības 35680 136 144 154 154 143 Special Drawing Rights
Rezerves pozīcija SVF 35700 0 0 0 0 0 Reserve position in the IMF
Citi rezerves aktīvi 35720 5 429 2 303 2 803 2 946 3 476 Other reserve assets
Nauda un noguldījumi 35740 1 610 189 207 140 70 Currency and deposits
38
(cont.)

Code
Vērtspapīri 35800 3 819 2 115 2 597 2 806 3 407 Securities
Atvasinātie finanšu instrumenti 35900 0 0 0 0 0 Financial derivatives
Citas prasības 35920 0 0 0 0 0 Other claims
PASĪVI 30000 L 39 750 44 470 46 637 48 432 50 777 LIABILITIES
TIEŠĀS INVESTĪCIJAS 30020 L 12 341 13 344 14 556 14 494 15 713 DIRECT INVESTMENT
Pašu kapitāls 30570 8 784 9 864 10 940 10 527 12 152 Equity
Saistības pret tiešo investīciju 30200 0 0 0 0 0 Liabilities to direct investment

Saistības pret tiešajiem 30670 8 784 9 864 10 940 10 527 12 152 Liabilities to direct investors
investoriem

investoriem
Saistības pret māsas 30520 0 7 7 7 12 Liabilities to fellow enterprises

uzņēmumiem, ja galvenais if ultimate controlling parent is
kontrolējošais investors ir resident
rezidents
Saistības pret māsas 31060 670 835 815 930 670 Liabilities to fellow enterprises
uzņēmumiem, ja galvenais if ultimate controlling parent is
kontrolējošais investors ir non-resident
nerezidents
PORTFEĻIEGULDĪJUMI 31600 3 371 5 579 6 138 7 178 7 093 PORTFOLIO INVESTMENT
Biržas sarakstā iekļautās un 31620 242 317 513 554 559 Listed and unlisted shares and
apliecības
MFI) MFIs)

Parāda vērtspapīri 31880 3 129 5 263 5 625 6 623 6 534 Debt securities
Valdība 32020 2 616 4 707 4 887 5 878 5 832 General government

MFI) MFIs)

ATVASINĀTIE FINANŠU 32380 196 223 238 249 213 FINANCIAL DERIVATIVES
INSTRUMENTI
39

MFI) MFIs)

CITI IEGULDĪJUMI 34000 23 842 25 323 25 704 26 511 27 759 OTHER INVESTMENT
Cits pašu kapitāls 34020 28 30 25 22 29 Other equity

MFI) MFIs)

Nauda un noguldījumi 34240 13 443 15 720 17 105 18 161 18 596 Currency and deposits
Īstermiņa 34340 10 162 12 156 13 496 10 319 9 570 Short-term
Aizņēmumi 34660 8 452 7 635 6 257 5 762 6 457 Loans
SVF kredītu un aizdevumu 34700 0 0 0 0 0 Use of IMF credit and loans

izmantošana
Citi īstermiņa 34720 0 0 0 0 0 Other short-term
Citi ilgtermiņa 34740 0 0 0 0 0 Other long-term
Valdība 34820 4 143 3 723 2 339 2 169 2 085 General government
SVF kredītu un aizdevumu 34840 0 0 0 0 0 Use of IMF credit and loans

izmantošana
Citi īstermiņa 34860 0 0 0 0 0 Other short-term
Citi ilgtermiņa 34880 4 143 3 723 2 339 2 169 2 085 Other long-term
Finanšu sabiedrības (izņemot 34930 1 247 1 539 1 576 1 336 1 250 Financial corporations (excl.
MFI) MFIs)
Ilgtermiņa 35000 1 161 1 263 1 338 852 900 Long-term
Apdrošināšanas, pensiju un 35040 0 0 0 34 18 Insurance, pension and

40
MFI) MFIs)

Tirdzniecības kredīti un avansi 35180 1 377 1 566 1 954 2 217 2 313 Trade credits and advances

MFI) MFIs)
Citi pasīvi 35240 406 227 210 161 202 Other liabilities

MFI) MFIs)

Speciālās aizņēmuma tiesības 35580 136 144 154 154 143 Special Drawing Rights
STARPTAUTISKO INVESTĪCIJU 30000 N –15 156 –15 607 –15 529 –14 672 –15 170 NET INTERNATIONAL
BILANCE (SALDO) INVESTMENT POSITION
41
4. LATVIJAS STARPTAUTISKO INVESTĪCIJU BILANCE (ATLIKUMA
PĀRMAIŅAS; 2017. GADS) [LATVIA'S INTERNATIONAL INVESTMENT
POSITION (CHANGES IN POSITION; 2017)]
(milj. eiro)
(millions of euro)
Postenis Kods Atlikums Darījumi Cenu Valūtas Citas Atlikums Components
Code perioda Transactions pārmaiņas kursu pārmaiņas perioda
sākumā Price changes svārstības Other beigās
Opening Exchange adjustments Closing
position rate position
changes
AKTĪVI 30000 A 33 760 2 720 455 –1 300 –27 35 607 ASSETS
TIEŠĀS INVESTĪCIJAS 30020 A 2 485 438 –5 –19 –62 2 837 DIRECT INVESTMENT
Pašu kapitāls 30070 1 016 140 –5 –5 –53 1 093 Equity

Prasības pret tiešo 30090 1 003 135 –5 –5 –49 1 079 Claims on direct
investīciju uzņēmumiem investment enterprises
Prasības pret tiešajiem 30600 13 5 0 0 –4 14 Claims on direct

investoriem investors
Parāda instrumenti 30410 1 469 298 0 –14 –9 1 745 Debt instruments
Prasības pret tiešo 30440 446 –28 0 –10 35 444 Claims on direct
Prasības pret tiešajiem 30980 627 289 0 –1 –33 882 Claims on direct
Prasības pret māsas 30460 52 –13 0 –3 –10 27 Claims on fellow

uzņēmumiem, ja enterprises, if ultimate
galvenais kontrolējošais controlling parent is
investors ir rezidents resident
Prasības pret māsas 31000 343 50 0 0 –1 392 Claims on fellow

investors ir nerezidents non-resident
PORTFEĻIEGULDĪJUMI 31100 13 440 2 255 74 –507 15 15 277 PORTFOLIO

INVESTMENT
Biržas sarakstā iekļautās 31120 1 830 555 158 –54 23 2 513 Listed and unlisted shares
un neiekļautās akcijas un and investment fund
ieguldījumu fondu shares or units
Centrālā banka 31140 32 0 –2 0 0 30 Central bank
MFI (izņemot centrālo 31160 41 0 –18 –1 0 22 MFIs (excl. central

banku) bank)
Valdība 31180 0 0 0 0 0 0 General government
Finanšu sabiedrības 31220 1 464 522 151 –40 23 2 121 Financial corporations
(izņemot MFI) (excl. MFIs)
Nefinanšu sabiedrības 31240 294 33 26 –13 0 340 Non-financial

un mājsaimniecības corporations and
households
Parāda vērtspapīri 31260 11 610 1 700 –84 –453 –8 12 764 Debt securities
Centrālā banka 31280 6 099 1 638 –87 –40 0 7 610 Central bank
Īstermiņa 31300 27 –23 0 –1 0 3 Short-term
Ilgtermiņa 31320 6 072 1 661 –87 –39 0 7 607 Long-term
MFI (izņemot centrālo 31340 3 927 –263 –9 –374 0 3 281 MFIs (excl. central
banku) bank)
Ilgtermiņa 31380 3 774 –230 –9 –368 0 3 167 Long-term
Valdība 31400 4 –1 0 0 0 3 General government
Ilgtermiņa 31440 4 –1 0 0 0 3 Long-term
Finanšu sabiedrības 31490 1 363 330 12 –29 –8 1 669 Financial corporations

42
Īstermiņa 31500 23 –19 0 0 0 4 Short-term
Ilgtermiņa 31560 1 340 349 12 –28 –8 1 665 Long-term
Nefinanšu sabiedrības 31510 217 –4 0 –11 0 202 Non-financial

households
Ilgtermiņa 31580 216 –5 0 –11 0 201 Long-term
ATVASINĀTIE FINANŠU 32240 415 –702 393 0 0 106 FINANCIAL

INSTRUMENTI DERIVATIVES
Centrālā banka 32260 20 –505 527 0 0 42 Central bank
MFI (izņemot centrālo 32280 167 –64 –69 0 0 34 MFIs (excl. central bank)
banku)
Valdība 32300 228 –124 –73 0 0 30 General government
Finanšu sabiedrības 32340 0 0 0 0 0 0 Financial corporations


changes
Nefinanšu sabiedrības un 32360 0 –9 9 0 0 0 Non-financial
mājsaimniecības corporations and
households
CITI IEGULDĪJUMI 32540 14 086 –163 3 –409 20 13 536 OTHER INVESTMENT
Cits pašu kapitāls 32560 352 48 3 0 –2 401 Other equity
Centrālā banka 32580 115 0 0 0 0 115 Central bank
MFI (izņemot centrālo 32600 0 0 0 0 0 0 MFIs (excl. central

banku) bank)

Nefinanšu sabiedrības 32680 11 –4 0 0 –3 4 Non-financial

households
Nauda un noguldījumi 32700 8 221 –330 0 –226 20 7 685 Currency and deposits
Centrālā banka 32720 4 088 399 0 0 0 4 487 Central bank
Īstermiņa 32740 3 924 399 0 0 0 4 323 Short-term
Ilgtermiņa 32760 163 0 0 0 0 163 Long-term
MFI (izņemot centrālo 32780 3 329 –803 0 –221 –1 2 305 MFIs (excl. central
banku) bank)
Īstermiņa 32800 3 328 –851 0 –221 –1 2 256 Short-term
Finanšu sabiedrības 33010 41 –6 0 0 25 60 Financial corporations

Īstermiņa 33020 41 –6 0 0 25 60 Short-term
Nefinanšu sabiedrības 33030 357 –67 0 –5 –4 280 Non-financial

households
Īstermiņa 33040 357 –67 0 –5 –4 280 Short-term
Aizdevumi 33120 3 049 –204 0 –170 –79 2 596 Loans
43
MFI (izņemot centrālo 33200 2 246 –197 0 –149 0 1 900 MFIs (excl. central
banku) bank)
Ilgtermiņa 33240 1 318 –129 0 –75 0 1 114 Long-term
Valdība 33260 162 –2 0 –12 –148 0 General government
Īstermiņa 33280 8 0 0 –1 –7 0 Short-term
Ilgtermiņa 33300 154 –2 0 –11 –141 0 Long-term
Finanšu sabiedrības 33350 339 –32 0 –4 131 434 Financial corporations

Ilgtermiņa 33420 193 13 0 –4 130 332 Long-term
Nefinanšu sabiedrības 33370 302 27 0 –4 –63 262 Non-financial

households
Īstermiņa 33380 82 30 0 –2 –40 70 Short-term
Ilgtermiņa 33440 220 –3 0 –2 –23 192 Long-term
Apdrošināšanas, pensiju 33460 29 3 0 0 0 32 Insurance, pension and

un standarta garantijas standardised guarantees

banku) bank)

Nefinanšu sabiedrības 33580 0 0 0 0 0 0 Non-financial

households
Tirdzniecības kredīti un 33600 2 100 356 0 –4 85 2 536 Trade credits and

avansi advances

changes
Finanšu sabiedrības 33620 56 8 0 0 –8 56 Financial corporations
Nefinanšu sabiedrības 33640 2 044 348 0 –4 93 2 481 Non-financial

households
Citi aktīvi 33660 335 –36 0 –9 –4 287 Other assets
MFI (izņemot centrālo 33740 94 –17 0 –5 0 72 MFIs (excl. central

banku) bank)
Valdība 33800 32 0 0 –3 –23 6 General government

Nefinanšu sabiedrības 33910 34 –10 0 0 9 33 Non-financial

households
REZERVES AKTĪVI 35600 3 334 892 –11 –364 0 3 851 RESERVE ASSETS
Monetārais zelts 35620 234 0 –3 0 0 231 Monetary gold

Speciālās aizņēmuma 35680 154 0 0 –11 0 143 Special Drawing Rights
tiesības
Rezerves pozīcija SVF 35700 0 0 0 0 0 0 Reserve position in the

IMF
Citi rezerves aktīvi 35720 2 946 892 –7 –354 0 3 476 Other reserve assets
44
Nauda un noguldījumi 35740 140 –59 0 –11 0 70 Currency and deposits
Vērtspapīri 35800 2 806 950 –7 –343 0 3 407 Securities
Atvasinātie finanšu 35900 0 0 0 0 0 0 Financial derivatives

instrumenti
Citas prasības 35920 0 0 0 0 0 0 Other claims
PASĪVI 30000 L 48 432 2 519 579 –945 192 50 777 LIABILITIES
TIEŠĀS INVESTĪCIJAS 30020 L 14 494 996 321 –13 –85 15 713 DIRECT INVESTMENT
Pašu kapitāls 30570 10 527 1 263 321 0 40 12 152 Equity
Saistības pret tiešo 30200 0 0 0 0 0 0 Liabilities to direct

Saistības pret tiešajiem 30670 10 527 1 263 321 0 40 12 152 Liabilities to direct
Parāda instrumenti 30950 3 967 –267 0 –13 –126 3 561 Debt instruments
Saistības pret tiešo 30500 48 10 0 0 –14 43 Liabilities to direct

Saistības pret tiešajiem 31040 2 982 –25 0 –12 –109 2 835 Liabilities to direct
Saistības pret māsas 30520 7 2 0 0 3 12 Liabilities to fellow

Saistības pret māsas 31060 930 –254 0 0 –6 670 Liabilities to fellow

PORTFEĻIEGULDĪJUMI 31600 7 178 20 80 –178 –6 7 093 PORTFOLIO

INVESTMENT
Biržas sarakstā iekļautās 31620 554 4 20 –12 –8 559 Listed and unlisted shares
un neiekļautās akcijas un and investment fund
ieguldījumu fondu shares or units
MFI (izņemot centrālo 31660 319 –1 –4 0 –11 302 MFIs (excl. central
banku) bank)
Finanšu sabiedrības 31760 175 11 5 –12 –2 177 Financial corporations

Nefinanšu sabiedrības 31820 61 –6 20 0 5 80 Non-financial

households
Parāda vērtspapīri 31880 6 623 15 60 –167 2 6 534 Debt securities
MFI (izņemot centrālo 31960 618 0 10 –47 1 582 MFIs (excl. central
banku) bank)
Ilgtermiņa 32000 618 0 10 –47 1 582 Long-term
Valdība 32020 5 878 18 57 –119 –1 5 832 General government

changes
Ilgtermiņa 32060 5 878 18 57 –119 –1 5 832 Long-term
Finanšu sabiedrības 32110 49 4 –5 0 0 48 Financial corporations

Ilgtermiņa 32180 49 4 –5 0 0 48 Long-term
45
Nefinanšu sabiedrības 32130 78 –7 –2 0 2 72 Non-financial
households
Ilgtermiņa 32200 78 –7 –2 0 2 72 Long-term
ATVASINĀTIE FINANŠU 32380 249 –209 173 0 0 213 FINANCIAL

INSTRUMENTI DERIVATIVES
MFI (izņemot centrālo 32420 22 0 –2 0 0 20 MFIs (excl. central bank)

banku)

Nefinanšu sabiedrības un 32500 0 –1 1 0 0 0 Non-financial

mājsaimniecības corporations and
households
CITI IEGULDĪJUMI 34000 26 511 1 712 6 –754 283 27 759 OTHER INVESTMENT
Cits pašu kapitāls 34020 22 2 6 0 –1 29 Other equity

banku) bank)
Finanšu sabiedrības 34120 2 1 0 0 –1 2 Financial corporations


households
Nauda un noguldījumi 34240 18 161 1 138 0 –688 –15 18 596 Currency and deposits
MFI (izņemot centrālo 34320 11 784 –311 0 –688 –15 10 770 MFIs (excl. central
banku) bank)
Īstermiņa 34340 10 319 –81 0 –654 –15 9 570 Short-term
Ilgtermiņa 34400 1 465 –231 0 –34 0 1 201 Long-term
Aizņēmumi 34660 5 762 582 0 –47 160 6 457 Loans
SVF kredītu un 34700 0 0 0 0 0 0 Use of IMF credit and

aizdevumu loans
izmantošana
Citi īstermiņa 34720 0 0 0 0 0 0 Other short-term
Citi ilgtermiņa 34740 0 0 0 0 0 0 Other long-term

banku) bank)
Valdība 34820 2 169 –84 0 –1 1 2 085 General government
SVF kredītu un 34840 0 0 0 0 0 0 Use of IMF credit

aizdevumu and loans
izmantošana
Citi īstermiņa 34860 0 0 0 0 0 0 Other short-term
Citi ilgtermiņa 34880 2 169 –84 0 –1 1 2 085 Other long-term
Finanšu sabiedrības 34930 1 336 –218 0 –5 137 1 250 Financial corporations

Īstermiņa 34940 484 –87 0 –1 –47 350 Short-term
Ilgtermiņa 35000 852 –131 0 –4 184 900 Long-term
Nefinanšu sabiedrības 34950 2 257 884 0 –41 22 3 122 Non-financial

households
46
Ilgtermiņa 35020 1 944 892 0 –29 10 2 815 Long-term
Apdrošināšanas, pensiju 35040 34 –10 0 0 –6 18 Insurance, pension and

un standarta garantijas standardised guarantees

changes
banku) bank)

Finanšu sabiedrības 35140 34 –10 0 0 –6 18 Financial corporations

households
Tirdzniecības kredīti un 35180 2 217 16 0 –4 84 2 313 Trade credits and

avansi advances
Finanšu sabiedrības 35200 31 37 0 –3 –13 52 Financial corporations

Nefinanšu sabiedrības 35220 2 187 –21 0 –1 97 2 262 Non-financial

households
Citi pasīvi 35240 161 –16 0 –4 61 202 Other liabilities
MFI (izņemot centrālo 35320 56 –15 0 –4 0 37 MFIs (excl. central

banku) bank)


households
Speciālās aizņēmuma 35580 154 0 0 –11 0 143 Special Drawing Rights

tiesības
STARPTAUTISKO 30000 N –14 672 201 –125 –355 –220 –15 170 NET INTERNATIONAL
INVESTĪCIJU BILANCE INVESTMENT POSITION
(SALDO)
47
5. LATVIJAS ĀRĒJAIS PARĀDS (LATVIA'S EXTERNAL DEBT)
(atlikums perioda beigās; milj. eiro)

(closing position; millions of euro)
VALDĪBA 6 975 8 575 7 381 8 202 8 061 GENERAL GOVERNMENT
Īstermiņa 91 6 0 1 0 Short-term
Parāda vērtspapīri 10 6 0 0 0 Debt securities
Aizņēmumi 0 0 0 0 0 Loans
Citi pasīvi 81 0 0 1 0 Other liabilities
Speciālās aizņēmuma tiesības 136 144 154 154 143 Special Drawing Rights
Parāda vērtspapīri 2 606 4 702 4 887 5 878 5 832 Debt securities
Aizņēmumi 4 143 3 723 2 339 2 169 2 085 Loans
CENTRĀLĀ BANKA 26 1 066 1 991 6 383 7 828 CENTRAL BANK
Īstermiņa 26 1 066 1 991 6 383 7 828 Short-term
Nauda un noguldījumi 23 1 065 1 990 6 377 7 826 Currency and deposits
Ilgtermiņa 0 0 0 0 0 Long-term
Nauda un noguldījumi 0 0 0 0 0 Currency and deposits
MFI (izņemot centrālo banku) 13 912 15 195 15 803 12 458 11 389 MFIs (excl. central bank)
Nauda un noguldījumi 10 162 12 156 13 496 10 319 9 570 Currency and deposits
Nauda un noguldījumi 3 258 2 499 1 619 1 465 1 201 Currency and deposits
FINANŠU SABIEDRĪBAS (izņemot 1 488 1 666 1 716 1 501 1 452 FINANCIAL CORPORATIONS
MFI) (excl. MFIs)
Īstermiņa 163 347 321 566 486 Short-term
Tirdzniecības kredīti un avansi 4 6 3 31 52 Trade credits and advances
Ilgtermiņa 1 325 1 319 1 395 935 966 Long-term
Aizņēmumi 1 161 1 263 1 338 852 900 Loans
NEFINANŠU SABIEDRĪBAS UN 4 543 4 054 4 414 4 570 5 533 NON-FINANCIAL CORPORATIONS

MĀJSAIMNIECĪBAS AND HOUSEHOLDS
48
Tirdzniecības kredīti un avansi 1 374 1 560 1 951 2 187 2 262 Trade credits and advances
Aizņēmumi 2 684 2 139 2 015 1 944 2 815 Loans
TIEŠĀS INVESTĪCIJAS 3 558 3 480 3 616 3 967 3 561 DIRECT INVESTMENT
Parāds tiešajiem investoriem 2 861 2 584 2 744 2 982 2 835 Debt to direct investors
Parāds tiešo investīciju uzņēmumiem 27 53 49 48 43 Debt to direct investment enterprises
Parāds māsas uzņēmumiem 670 842 822 937 682 Debt to fellow enterprises
BRUTO ĀRĒJAIS PARĀDS 30 501 34 035 34 921 37 079 37 824 GROSS EXTERNAL DEBT
ĀRĒJIE AKTĪVI 22 166 26 086 27 806 29 913 31 264 EXTERNAL ASSETS
Valdība 522 744 274 605 562 General government
MFI (izņemot centrālo banku) 8 859 13 083 11 874 9 597 7 558 MFIs (excl. central bank)
Finanšu sabiedrības (izņemot MFI) 840 1 345 1 662 1 984 2 395 Financial corporations (excl. MFIs)
Nefinanšu sabiedrības un 5 286 2 138 2 752 2 953 3 257 Non-financial corporations and
Tiešās investīcijas 1 091 1 236 1 364 1 469 1 745 Direct investment
NETO ĀRĒJAIS PARĀDS 8 336 7 950 7 114 7 167 6 560 NET EXTERNAL DEBT

(DARĪJUMI) [LATVIA'S DIRECT INVESTMENT ABROAD AND DIRECT
INVESTMENT IN LATVIA (TRANSACTIONS)]
(millions of euro)
Code
TIEŠĀS INVESTĪCIJAS N 30040 310 292 15 130 82 DIRECT INVESTMENT ABROAD

ĀRVALSTĪS
Pašu kapitāls (izņemot reinvestēto N 30080 232 298 –39 66 92 Equity (excl. reinvested earnings)
peļņu)
Prasības pret tiešo investīciju N 30100 232 298 –39 66 92 Claims on direct investment
Saistības pret tiešo investīciju N 30200 0 0 0 0 0 Liabilities to direct investment

Parāda instrumenti N 30400 36 –12 2 39 –52 Debt instruments
Prasības N 30420 30 0 –5 49 –41 Claims
Pret tiešo investīciju N 30440 30 –24 8 55 –28 On direct investment

Pret māsas uzņēmumiem, ja N 30460 0 24 –13 –6 –13 On fellow enterprises, if

galvenais kontrolējošais ultimate controlling parent is
Saistības N 30480 –6 12 –6 10 12 Liabilities
49
Pret tiešo investīciju N 30500 –6 11 –3 9 10 To direct investment
Pret māsas uzņēmumiem, ja N 30520 0 1 –4 1 2 To fellow enterprises, if
TIEŠĀS INVESTĪCIJAS LATVIJĀ N 30540 680 588 640 134 640 DIRECT INVESTMENT IN
LATVIA
Pašu kapitāls (izņemot reinvestēto N 30580 550 459 204 –485 979 Equity (excl. reinvested earnings)
peļņu)
Prasības pret tiešajiem investoriem N 30600 –12 12 –6 0 5 Claims on direct investors
Saistības pret tiešajiem N 30680 538 470 198 –485 984 Liabilities to direct investors
investoriem
Parāda instrumenti N 30940 –101 –104 7 148 –618 Debt instruments
Prasības N 30960 81 93 124 77 339 Claims
Pret tiešajiem investoriem N 30980 38 14 75 23 289 On direct investors
Pret māsas uzņēmumiem, ja N 31000 43 79 49 54 50 On fellow enterprises, if

Saistības N 31020 –20 –11 131 225 –279 Liabilities
Pret tiešajiem investoriem N 31040 –45 10 134 81 –25 To direct investors
Pret māsas uzņēmumiem, ja N 31060 25 –21 –3 145 –254 To fellow enterprises, if

50
LATVIJAS TIEŠĀS INVESTĪCIJAS ĀRVALSTĪS UN TIEŠĀS

7.
INVESTĪCIJAS LATVIJĀ (ATLIKUMS PERIODA BEIGĀS)
[LATVIA'S DIRECT INVESTMENT ABROAD AND DIRECT INVESTMENT
IN LATVIA (CLOSING POSITION)]
(milj. eiro)
(millions of euro)
Code
TIEŠĀS INVESTĪCIJAS 30040 1 160 1 120 1 309 1 447 1 494 DIRECT INVESTMENT ABROAD
ĀRVALSTĪS
Pašu kapitāls 30070 829 790 939 1 003 1 079 Equity
Prasības pret tiešo investīciju 30090 829 790 939 1 003 1 079 Claims on direct investment

Parāda instrumenti 30400 331 330 370 444 416 Debt instruments
Prasības 30420 358 391 425 499 471 Claims
Pret tiešo investīciju 30440 358 337 378 446 444 On direct investment
Pret māsas uzņēmumiem, ja 30460 0 54 47 52 27 On fellow enterprises, if

Saistības 30480 27 60 56 54 55 Liabilities
Pret tiešo investīciju 30500 27 53 49 48 43 To direct investment

Pret māsas uzņēmumiem, ja 30520 0 7 7 7 12 To fellow enterprises, if

TIEŠĀS INVESTĪCIJAS LATVIJĀ 30540 11 570 12 415 13 543 13 456 14 370 DIRECT INVESTMENT IN
LATVIA
Pašu kapitāls 30570 8 772 9 841 10 921 10 514 12 138 Equity
Prasības pret tiešajiem investoriem 30600 11 24 19 13 14 Claims on direct investors
investoriem
Prasības 30960 734 845 938 970 1 274 Claims
Pret tiešajiem investoriem 30980 576 571 625 627 882 On direct investors
Pret māsas uzņēmumiem, ja 31000 158 275 314 343 392 On fellow enterprises, if
Saistības 31020 3 531 3 419 3 560 3 912 3 506 Liabilities
Pret tiešajiem investoriem 31040 2 861 2 584 2 744 2 982 2 835 To direct investors
Pret māsas uzņēmumiem, ja 31060 670 835 815 930 670 To fellow enterprises, if
61
10.0 Appendix of Estonia’s Balance of Payments
62
63

International Finance 28.12.2018 PDF

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

International Finance 28.12.2018 PDF

Caricato da

Copyright:

Formati disponibili

Xiamen University Malaysia

Course Code : IBU209 Cover Page

Submission Due Date : 4th January 2019

Feedback from Lecturer:

Own Work Declaration

Date: 4th January 2019

Thank you all.

5.3.2 Weakness: Other Investment Assets ...................................................................................... 21

Course Code IBU209

A. Introduction/ Situation/ Background Information

B. Course Learning Outcomes (CLO) covered

C. University Policy on Academic Misconduct

1. Academic misconduct is a serious offense in Xiamen University Malaysia. It can be defined

Figure 1.1.1 View of Latvia

Figure 1.2.1 Welcome to Estonia

2.1 Main current account components

• a 684-million increase in the deficit on trade in goods;

Figure 2.1.2 Gross Balances of Current Account in Latvia

Travel Services of Latvia in 2016 and 2017

2017 Credit 2017 Debit 2016 Credit 2016 Debit

Figure 2.3.1.1 Travel Services of Latvia in 2016 and 2017

2.3.2 “Other services”

-700 -500 -300 -100 100 300 500 700

Figure 2.3.2.1 Other services of Latvia in 2016 and 2017

2.4 Primary income

Table 2.4.1 Primary income of Latvia

2.4.2 Portfolio investment income

2.4.3 Income from “other investment” and reserve assets

2.4.4 Other primary income and compensation of employees

2.7 Financial account

2.7.1 Direct Investment

2.7.2 Portfolio Investment

Debt securities 1744 989 755 1700 15 1685

Table 2.7.2.1 Portfolio Investment of Latvia

2.7.3 Financial Derivatives

2.8 Official Reserve

Table 3.0.1 Overall review of Estonia’s balance of payment accounts

3.1 Current Account

Table 3.1.1 Current Account of Estonia

• a 55.4 million reduction in the deficit on trade in goods;

Figure 3.1.1.1 Gross Balances of Current Account in Estonia

Normal exports of goods grew by 6.4%

are mineral products, wood products and

The main sources of the growth in imports

Figure 3.1.2.3 Transport Service of Estonia

Imports of services by major categories

Figure 3.1.2.4 Imports of Services by Major Categories

3.1.3 Primary income, secondary income and the capital account

Inflow Outflow Balance

The surplus in secondary

3.2 Capital Account

Inflow Outflow Balance

3.3 Financial Account

3.3.1 Direct investment

Volume (EUR million)

4.1 Current Account

4.2 Capital Account

4.3 Financial Account

4.4 Macroeconomic factors

Along the economic situation improvement, the

4.4.2 Weakness: Investment

5.1 Current Account

5.1.2 Weakness: Normal Trade in Goods