As at the end of June 2010, the Maltese economy recorded an estimated net international investment position (IIP) of €900.2 million.
The total holding of foreign assets owned by domestic residents was €45.5 billion compared to €44.6 billion in liabilities to foreign residents as at June last year.
Over the course of a year, between June 2009 and June 2010, foreign assets advanced by 27.7 per cent. The increase was due to improvements in portfolio and other investments of €4.7 billion and €5.0 billion respectively. These increases were mainly driven by cross-border asset positions in foreign debt securities and loans by the banking sector.
On the liabilities side, foreign direct investment in Malta amounted to €11.9 billion by end June 2010, an increase of €5.8 billion from the position a year before. Furthermore, Malta’s other investment liabilities went up by €3.6 billion over the same time period due to changes recorded in currency and deposits and loans.
The country’s reserve assets decreased by €71.6 million during the period under review, standing at €290.2 million as at the end of June 2010.
The IIP statement is a summary balance sheet showing the stock of external assets and liabilities of Malta vis-à-vis the rest of the world as at the end of a particular period.
The compilation of the IIP is in line with international statistical standards.