Foreign assets increase by €800 million

As at the end of June 2013, the Maltese economy recorded an estimated net international investment position of €1.64 billion.

Compared to June of the previous year, in June 2013 total foreign assets increased by €0.98 billion. Total foreign liabilities increased by €0.80 billion during the corresponding period, resulting in an overall increase in the International Investment Position (IIP) of €0.18 billion.

Malta's total foreign assets abroad amounted to €48.69 billion as at end of June 2013. Other Investment accounted for 53.5 per cent, while Portfolio Investment represented 42.9 per cent of total foreign assets. The improvement in Malta's foreign assets was mainly driven by a €1.47 billion increase in debt securities, primarily bonds and notes. This was partly offset by a €0.55 billion decline in Other Investment mainly due to a fall in loans generated by the banking sector.

At the end of June last year, Malta's foreign liabilities were estimated at €47.05 billion. Accounting for 73.7 per cent of total foreign liabilities, Other Investment went up to €34.69 billion from €33.32 billion in June 2012. The increase was mainly attributed to an increase in loans to the Monetary Authorities. Foreign direct investment, representing 24.3 per cent of total foreign liabilities, declined to €11.42 billion from €11.98 billion a year earlier.