Balance of payments of Republic of Moldovaachieved goals and future developments

Istanbul, 6-8 of May, 2015

Ion VeverițăDirector,Reporting and Statistics Department

Background• The National Bank of Moldova (NBM) is the institution in charge of the compilation of external sector statistics

(BOP, IIP, and external debt)

• The BOP is compiled quarterly since 1993

• The IIP is compiled annually since 1994 and quarterly since 1998

• External debt data are compiled in accordance with the recommendations set out in the External Debt Statistics Guide and are published starting from 2000

• The Data Template on International Reserves and Foreign Currency Liquidity is submitted to STA since 2005

• The Republic of Moldova subscribed to the SDDS in May 2006

• CDIS is conducted annually starting with data for 2009

• Statistical statements do not include data for the territory located on the left bank of the Dniester River!!!

• External sector datasets are compiled in US dollars

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Legal framework & methodological standards

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The balance of payments of the Republic of Moldova is elaborated on the basis of:

Article 5 of the Law on the National Bank of Moldova no. 548-XIII of July 21, 1995 The Law on Official Statistics (2004) The NBM Regulations on the Balance of Payments Data Reporting (1997)

BOP and IIP are compiled according to the:

Starting with the Q2 2014 sixth edition of the Balance of Payments and International Investment Position Manual (2009)

the Financial Derivatives Supplement (2000) the item “SDR allocations” is recorded according to the recommendations of the sixth edition

of the Balance of Payments and International Investment Position Manual (2009)

Adjustments of the data collection system

• Survey on insurance services was modified. A new part was added “Insurance company’s activity under contracts with non-resident entities”

• Survey of enterprises with foreign investment in equity capital was modified: stocks and flows were split by component as required by the BPM6

• In the ITRS report form: the field “Tax Identification Number” of economic agents became mandatory for recording; this will facilitate sector and branch attribution of economic agents based on the Code of Economic Activity

• A new annex to the Report on settlements with non-residents by the enterprises engaged in external economic activity was implemented (in the context of transition of non-financial enterprises to the International Accounting System)

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Adjustments of the data collection system(II)• The Balance of Payments Division (BOPD) was granted direct access to the Official Register of

Enterprises at the Ministry of Information Technology

• The BOPD started to process the database on enterprises with foreign investment in equity capital (beginning with 2013) – a new report is prepared (as far as new accounting standards were approved)

• ITRS Transactions Classifier was supplemented with new codes in accordance with the BPM6 methodological standards

• BOPD obtained after negotiations with Customs Service the access to new fields in customs declarations database

• The value of re-exports and processing services was derived from the Customs Declarations Database

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• A working group consisting of the IT and the BOP divisions representatives was established in 2010

• A new more advanced and flexible software was elaborated to meet the new standard structure of the BOP and IIP and to generate analytical tables

• The extended BOP (BPM5-BPM6) structure was elaborated to keep track of historical series and for analytical purposes

• Algorithms were developed for recalculating historical series according to the BPM6 requirements

• A new software to compile the reserve asset based on daily exchange rate.• Was adjusted the application for banks currency and deposit data (from by region to by

country)• New software includes the BOP/IIP reports to the IMF via the Integrated Correspondence

System

Adjustments of the data collection system(III)

Methodological changes & reclassifications

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• Revision on metadata notes for each BOP item was initiated to accommodate all changes in data collection and methodology

• Initiation of developing a new methodology for estimating trade credit and advances

• Reclassification of governmental grants for construction and capital projects from current transfers to capital transfers

• Adjustment of historical data in services, primary income, loans by component

• Reclassification of arrears in external debt service by instrument and original maturity (separately of arrears for import of energy resources)

Data sources for the BOP and IIP statistics

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Customs dec lara t ion DB

ITRS fo r t ransact ions v ia res iden t banks

ITRS fo r t ransact ions on

res iden t accounts w i th fo re ign banks

DB on flows & stocks of FI in resident enterprises

DMFAS

NBM DB on:• Banks shareholders• Banks assets/liabilities

in FX(balance sheets)• Reserves assets

Economic agents reports on:• Imports of energy resources

NBS statistical synthesis on:• Trade in Services• Insurance• Stuff training• Labour Force Survey

Administrative data from Ministries and Agencies:

• Ministry of Economy • Ministry of Finance• State Chancellery• Ministry of Education• Ministry of Foreign Affairs• Ministry of Information Technology• National Financial Market

Commission• National Bureau of Migration &

Asylum• State Agency for Land & Cadastre• Real Estate Agency• Foreign embassies, international representative offices

Balance of Payments

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Data processingBOP compilation process is supported by following elements of analyses, applied for data

processing:

• trade with goods database, received from the National Bureau of Statistics, prepared based on customs data

• ITRS for transactions on economic agents' direct accounts in foreign banks• DMFAS (Debt Management and Financial Analysis System) version 6 • ITRS reported by commercial banks and the central bank • read-only access to NBM databases on reserve assets, banks' assets/liabilities in

foreign exchange, banks' shareholders• other

As a rezult, we have the Balance of Payments as a outbound report.

Dissemination and revision policy

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The external sector statistics are disseminated on the NBM’s website :http://www.bnm.md/en/statistics

The site provides the following information:• recent BOP and IIP statistics• legal aspects• methodological issues• comments on quarterly and annual report on BOP, IIP, and external debt• press-releases and electronic copies of BOP Statistical Yearbooks

Revisions of quarterly data are conducted every quarter in effect to the previous quarters of the reported year (can affect data up to three quarters)

Revisions of annual data are conducted once a year and affect quarterly and annual data up to four previous years

Future plans

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• An Agreement for Collaboration between the NBM and the National Bureau of Statistics regarding the exchange of information in light of new BOP/SNA methodological standards to be approved

• Testing and validation of new BOP/IIP software• Elaboration of a software for processing of database on enterprises with foreign investment in

equity capital • Elaboration of a new database on reports from money transfer operators and non-bank payment

services renderers• Implementation of a new version of DMFAS • Adjustments to ITRS to meet the BPM6 requirements• Conduct a special survey on transport services• Conduct an assessment and analysis of activity of enterprises involved in processing of goods

BoP for Q1 and Q2 2014, BPM5 vs BPM6

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Thank you for attention