FDI statistics in Montenegro
new presentation of data
Mira Radunović
Head of Balance of Payments Division
13 April 2015
The Central Bank of Montenegro
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LEGAL FRAMEWORK

Law on Central bank of Montenegro (“Official Gazette of Montenegro”, no 40/10, 46/10, 6/13)

Law on Official Statistics and Statistical System (“Official Gazette of Montenegro”, no 18/12)

Law on Current and Capital Operations with Abroad (“Official Gazette of the Republic of
Montenegro”, no. 45/05, and “Official Gazette of Montenegro”, no 62/08, 40/11)

Decision on statistical data to be submitted to the Central bank of Montenegro for the
purpose of compiling the Balance of payments of Montenegro (“Official Gazette of
Montenegro”, no 61/12);
 Decision on keeping separate records on foreign current and capital transactions and
their reporting to the Central bank of Montenegro (“Official Gazette of Montenegro” no
38/10);
 Decision on the amount of cash that may be brought into or leave Montenegro without
declaring (“Official Gazette of Montenegro” no 38/10).
13 April 2015
The Central Bank of Montenegro
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FDI in Montenegro
 FDI is an important issue in Montenegro
o Inward FDI are more important than outward.
 10% ownership rule is applied according to BPM5/BPM6 and BD4
methodology
 ITRS - primary data source for the compilation of FDI
13 April 2015
The Central Bank of Montenegro
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Chart – Net FDI flows in Montenegro
13 April 2015
The Central Bank of Montenegro
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FDIs as drivers of economic growth, but also as the factor of the trade and current account
deficit
Chart – FDI vs import of goods
Chart – FDI vs CA and trade deficit
3.000.000
Current account deficit
Import of goods
2,500,000
2.000.000
2,000,000
in 000 EUR
in 000 EUR
FDI-net
2.500.000
1.500.000
1.000.000
500.000
Trade deficit
FDI-net
1,500,000
1,000,000
500,000
0
0
2007
13 April 2015
2008
2009
2010
2011
2012
2007
The Central Bank of Montenegro
2008
2009
2010
2011
2012
5
Foreign Direct Investment- flows
 The Central bank compiles FDI statistics -flows using information from ITRS.
o Separate ITRS codes for transactions in direct investments by residents abroad and non-residents in
MNE (equity and debt).
 FDI comprises not only the initial transaction establishing the relationship between the
investor and the enterprise, but also all subsequent transactions between them and among
affiliated enterprises.
o Intercompany debt transactions between affiliated enterprises are recorded as a direct investment –
other capital.
o Reports on transactions in cash from the Custom office.
 The data are cross-checked by using information from various sources as enterprises, media,
etc.
13 April 2015
The Central Bank of Montenegro
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Foreign Direct Investment- flows (cont.)
In accordance to BPM6 and BD4 FDI data:
o Includes intercompany lending, except between financial institutions (the data
could be provided for stock);
o Covers fellow enterprises.
13 April 2015
The Central Bank of Montenegro
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Foreign Direct Investment- stock data
 In 2010 CBM launched direct reporting system by companies for FDI stock data both inwards and outwards.
–
All legal entities with foreign capital and legal entities owning a company abroad are obligated to submit
reports to the CBM about the stock and changes in capital annually;
 Geographical breakdown is available.
 Included data on reinvested earnings.
 Also available data on transactions between fellow enterprises (mainly
intercompany debt).
13 April 2015
The Central Bank of Montenegro
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New presentation of FDI data
ASSETS/LIABILITIES PRINCIPLE
FDI ASSETS
FDI LIABILITIES
Investment by MNE direct investors in DIE abroad
Investment by foreign investors in DIE in MNE
Reverse investment by DIE in MNE in their direct investors
abroad
Reverse investment by DIE abroad in their direct investors
in MNE
Investment by fellow enterprises in MNE in other fellow
enterprises abroad
Investment by fellow enterprises abroad in fellow
enterprises in MNE
13 April 2015
The Central Bank of Montenegro
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Plans for future
 To improve questionaires for inward and outward FDI

Include questions regarding flows and DI relationship

Reverse investments

Create a new reporting system based on electronically submission of data
 To include data on RIE in BOP
13 April 2015
The Central Bank of Montenegro
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Thank you for attention!
13 April 2015
The Central Bank of Montenegro
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