1. NATIONAL BANK OF ROMANIA NATIONAL BANK OFROMANIA NATIONAL BANK OF ROMANIA

2. NATIONAL BANK OF ROMANIA 2 Romanian BOP compilation system a mixed system a mixed system ITRS (settlement) + other administrative sources ITRS (settlement) + other administrative sources Ministry of Public Finance reports to the central bank (NBR) monthly data on: Ministry of Public Finance reports to the central bank (NBR) monthly data on: - public external debt (public debt management) - public external debt (public debt management) - EU financial assistance (management/coordination authority)

3. NATIONAL BANK OF ROMANIA 3 EU funds categories  Pre-accession funds (before 2007): PHARE (Pologne et Hongrie – Aide a Restructuration Economique) – economic restructure + infrastructurePHARE (Pologne et Hongrie – Aide a Restructuration Economique) – economic restructure + infrastructure ISPA (Instrument for tructural Policies for Pre-Accession) – transport infrastructure + environment protectionISPA (Instrument for Structural Policies for Pre-Accession) – transport infrastructure + environment protection SAPARD (Special Pre-Accession Programme for Agriculture and Rural Development) – agriculture support + rural developmentSAPARD (Special Pre-Accession Programme for Agriculture and Rural Development) – agriculture support + rural development  Post accession funds (structural funds allocated to reach economic and social cohesion among regions)

4. NATIONAL BANK OF ROMANIA 4 Post accession funds (2007 – 2013): European Regional Development Fund (ERDF) – for productive investment, investment in infrastructure, regional and local developmentEuropean Regional Development Fund (ERDF) – for productive investment, investment in infrastructure, regional and local development European Social Fund (ESF) – for employment opportunities and developing a skilled and adaptable workforceEuropean Social Fund (ESF) – for employment opportunities and developing a skilled and adaptable workforce Cohesion Fund (CF) – for transeuropean transport networks, environment protectionCohesion Fund (CF) – for transeuropean transport networks, environment protection European Agricultural Fund for Rural Development (EAFRD) – rural development + agriculture restructureEuropean Agricultural Fund for Rural Development (EAFRD) – rural development + agriculture restructure European Agricultural Gurantee Fund (EAGF) – direct payments to farmers (subsidies on products)European Agricultural Gurantee Fund (EAGF) – direct payments to farmers (subsidies on products) EU funds (cont)

5. NATIONAL BANK OF ROMANIA 5  Current transfers (BPM 5 Textbook, 1996): offsetting entries for real resources or financial items provided, without a quid pro quo, by one economy to anotheroffsetting entries for real resources or financial items provided, without a quid pro quo, by one economy to another transfers that are not transfers of capitaltransfers that are not transfers of capital include transfers relating to current international cooperation between governments and other transfers.include transfers relating to current international cooperation between governments and other transfers. Methodological issues (1)

6. NATIONAL BANK OF ROMANIA 6 Methodological issues (2) Capital Transfers (BPM 5 Textbook, 1996):  Capital Transfers (BPM 5 Textbook, 1996): transfers of ownership of fixed assetstransfers of ownership of fixed assets transfers of funds linked to, or conditional upon, the acquisition or disposal of fixed assetstransfers of funds linked to, or conditional upon, the acquisition or disposal of fixed assets debt forgivenessdebt forgiveness other capital transfersother capital transfers Capital transfers in cash are linked to acquisition of fixed assets/investment

7. NATIONAL BANK OF ROMANIA 7 Gross fixed capital formation (ESA 1995): represents the value of the durable goods (tangible and intangible assets) for non-military purposes, purchased by the resident producing units to be used at least one year in the production process, as well as the value of services incorporated in fixed capital goods.Gross fixed capital formation (ESA 1995): represents the value of the durable goods (tangible and intangible assets) for non-military purposes, purchased by the resident producing units to be used at least one year in the production process, as well as the value of services incorporated in fixed capital goods. Investment grants - capital transfers in cash made by governments, to finance all, or parts, of the cost of acquiring fixed assets. The recipients are obliged to use these grants received for purposes of gross fixed capital formationInvestment grants - capital transfers in cash made by governments, to finance all, or parts, of the cost of acquiring fixed assets. The recipients are obliged to use these grants received for purposes of gross fixed capital formation In practice, the distinction between current and capital transfers is to be found in the use of the transfer by the recipientIn practice, the distinction between current and capital transfers is to be found in the use of the transfer by the recipient. Methodological issues (3)

8. NATIONAL BANK OF ROMANIA 8 BOP recording  How to split the BOP allocation of EU funds into current transfers and capital transfers? current transfers and capital transfers? - - impact on scoreboard indicators (current account deficit/GDP)  Pre-accesion funds have been allocated: as a ratio resulting from NBR - MPF discussions as a ratio resulting from NBR - MPF discussions for 2004 to 2007 about 1/3 to current transfers and 2/3 to capital transfers

9. NATIONAL BANK OF ROMANIA 9 Romanian data

10. NATIONAL BANK OF ROMANIA 10  post accession: follow the rule of the use of the transfer by the recipient  Vademecum 2010, codelist: ERDF – capital and/or current transfer ERDF – capital and/or current transfer ESF – current transfer ESF – current transfer CF – capital transfer CF – capital transfer EAFRD – capital and/or current transfer EAFRD – capital and/or current transfer EAGF – current transfer EAGF – current transfer EFF – current transfer EFF – current transfer  mirroring the EC with our BOP data on EU funds : close pattern BOP recording (2)

11. NATIONAL BANK OF ROMANIA 11 Current and capital transfers, EC mirror data

12. NATIONAL BANK OF ROMANIA 12  enhance the dialogue NBR – MPF - MAEur to better assess the split between current/capital transfer based on the use of EU funds analysis MPF as primary recipient of the fundsMPF as primary recipient of the funds MAEur coordination and management funds authorityMAEur coordination and management funds authority  the use of EU mirror statistics as a checking method on a regular basis Way forward

13. NATIONAL BANK OF ROMANIA Thank you!