>> The Danish BoP system EU Twinning Project Support to the Israeli Central Bureau of Statistics Activity A.6, Jerusalem, 8-11 July, 2013

>> The general BoP system (1) 2 BALANCE OF PAYMENTS Current Account Capital Account INTERNATIONAL Opening Financial Revaluations Closing INVESTMENT POSITION Stock Account Stock Errors and Omissions

>> The general BoP system (2) 3 BALANCE OF PAYMENTS Current Account Capital Account INTERNATIONAL Opening Financial Revaluations Closing INVESTMENT POSITION Stock Account Stock Errors and Omissions Statistics Denmark Danmarks Nationalbank

>> Some exceptions to the rule  Current Account – investment income  Danmarks Nationalbank data – except for small contributions regarding construction and insurance (from Trade in Services)  Financial Account - FDI  Data from Danmarks Nationalbank supplemented with Statistics Denmark information on construction abroad (to be changed with the introduction of ESA2010) 4

>> EU regulations and reporting  Extrastat  Intrastat  Simplified company reporting to National Statistical Offices (EU’s common market): requirements to coverage etc.  Balance of Payments, Trade in Services, and Foreign Direct Investments  Reporting (to Eurostat)  Balance of payments, overall : Statistics Denmark  Detailed FDI : Danmarks Nationalbank 5

>> No ITRS in Denmark since 2004 (international transactions reporting system = settlement system)  Settlement system until 2004  Indirect reporting to Danmarks Nationalbank  Based on the tradition of surveillance of the inflow and use of foreign currency – the foreign reserve  Several important improvements of the ITRS, particularly Trade in Services – last one in 1998  Reasons to give up the settlement based system  The BoP credibility crisis in the Danish media in the late 1990’s put focus on the weaknesses of the settlement system  Analysis of the total societal costs related to alternative solutions – i.e. indirect versus direct reporting 6

>> Current account - goods  Based on the Foreign Trade Statistics  Until the 80’s: companies’ reporting to Customs  Since the 80’s: -Intrastat: direct reporting to Statistics Denmark on trade with EU countries -Extrastat: customs declarations on non-EU trade, but data quality work related to statistics done in Statistics Denmark since Supplementary reporting to Statistics Denmark (energy goods)  On-going single-flow initiatives at EU level 7

>> Current account - services  International Trade in Services  Until 2004 based on ITRS (the settlement system)  Direct reporting since 2005  Monthly (400 companies) and Quarterly (1,200 companies)  Monthly (350 companies) and Yearly (1,300 companies) 8

>> Current account – income Compensation of employees  Micro-data from Danish Tax Authorities: E-income Investment income  Danmarks Nationalbank  Direct reporting  Separate prognosis model Other income and capital transfers  Worker’s remittances estimates  Transfers -Ministry of Finance -Additional data through Trade in Services (NGOs) 9

>> Financial account - instruments Danmarks Nationalbank’s area  Foreign Direct Investments  Portfolio Investments  Financial Derivatives  Loans and Deposits  Foreign Reserve Integrated data collection  Stock (BoP) and Flow (IIP)  MFI, Security Central (VP), direct reporting from companies 10

>> Financial account - overview 11 F I N A N C I A L I N S T R U M E N T DATA COLLECTION SCHEMEFDI Portfolio Investments Financial Derivatives Loans and Deposits Foreign Reserve Monetary Financial InstitutionsXXXXXX XXX 1) Security Central (VP) and custodiansXXX Danish bonds issued abroadXX Companies' direct reporting (BoP)XXXXXXX 1) Including the Accounting Department of Danmarks Nationalbank

>> Financial accounts – companies’ reporting Monthly: 650 companies Yearly: 450 companies 12

>> Maintenance of populations The ITRS used to be a cornerstone for the population updating Without the ITRS, the sources are: -VAT declarations -The Business Register -Newspapers (!) -Screening surveys -Co-ordination between Statistics Denmark and Danmarks Nationalbank – and between statistics 13

>> The BoP co-operation The monthly publications  Financial account: first banking week of the month, i.e. approximately 38 days after the reference month  Current account: always 40 days after the reference month  Data transmission from Danmarks Nationalbank - 5 working days before publishing of current accounts  Overview material from Statistics Denmark: 2 working days before publishing  BoP discussion meeting: 1 working day before publishing The Quarterly and Yearly Publications  In general, according to EU reporting requirements 14

>> Current account , net 15

>> Financial account , net data 16

>> Erros and omissions,

>> Coordination of statistics and revision policies (1) Goods: Foreign Trade Statistics and BoP 18

>> Coordination of statistics and revision policies (2) Danmarks Nationalbank  MFI statistics  BoP financial account  Quarterly financial accounts Statistics Denmark  Government Finance Statistics  Balance of Payments  Monthly and Quarterly National Accounts  Yearly Financial Accounts 19