Maltese assets abroad total €45 billion

As at December 2010, Malta’s IIP was estimated to be €0.57 billion, a 32 per cent decrease over the previous year. Over the course of a year, both assets and liabilities increased steadily, but the gap between the two variables narrowed since September 2010.

The difference between an economy’s external financial assets and liabilities is defined as the economy’s net International Investment Position (IIP). In other words, the international investment position is a statistical statement, compiled at a specific time period to estimate: (i) the value and composition of the stock of an economy’s external financial assets or the economy’s claims on the rest of the world, and (ii) the value and composition of the stock of an economy’s liabilities to the rest of the world.

Malta’s Investment abroad

The level of Malta’s assets abroad reached €44.70 billion as at 31 December 2010. Direct investment abroad accounted for €1.15 billion (2.56%); portfolio investment €15.61 billion (34.91%); financial derivatives €0.22 billion (0.49%); other investments €27.33 billion (61.13%); and reserve assets €0.40 billion (0.91%).

Foreign investment in domestic economy

Malta’s total liabilities as at 31 December 2010, were estimated to be €44.14 billion. Direct investment in Malta accounted for €12.39 billion (28.07%); portfolio investment €0.48 billion (1.08%); financial derivatives €0.31 billion (0.70%); and other  investment €30.96 billion (70.15%)