Income

The Income Balance records financial flows stemming from transactions (receipts and payments) between residents and non-residents related to income from Labor, Direct Investment, Portfolio Investment and Other Investment (loans and deposits).

Moreover, according to the new methodology based on the 6th edition of the IMF Balance of payments Manual, it comprises flows between the General government and the rest of the world (mainly EU) that relate to taxes and subsidies on products and production (part of previous current transfers).

Statistical data on all categories of income except those related to bonds are reported to the Bank of Greece by the resident monetary financial institutions intermediating in the settlement of such transactions. Also, the Central Securities Depository provides data on non-residents’ transactions (purchases and sales) in shares traded in the Athex.

Since 2003, bond interest payments under Portfolio Investment Income are calculated not on cash, but on an accruals basis (for more information see Bank of Greece Press Release – Balance of payments – APRIL 2005).

Since 2003, Direct Investment Income also records reinvested direct investment earnings, estimations based on the data collected by the Bank of Greece directly from firms operating in Greece within a direct investment relationship.