Structure of the balance of payments of Belarus

As you know, the balance of payments is a statistical report, where data on the country’s foreign economic operations for a certain period of time are presented in a systematic form. In Belarus, such operations that are performed between residents and non-residents include operations with goods, services, income, as well as financial requirements and obligations in relation to other countries of the world. The classification of the balance of payments involves the allocation of two main sections in its structure: the current account (current account) and the account of capital transactions and financial transactions, which are presented more small standard components.

The current account covers any transactions with real values (with the exception of operations with financial components) performed between residents and non-residents. This account reflects information on export-import operations with goods, services, income and current transfers.

The section includes the export and import of goods, includes operations with goods for processing, goods for repair, goods purchased at ports by transport organizations.

Services include export-import operations with services. Among the services, the following types are distinguished: transport, tourism services, communication services, construction, insurance, financial, computer and information services, royalties and royalties, leases, printing, state and other business services.

The income item includes two categories: wages of workers and income from investments. The remuneration of workers consists of wages paid to non-resident workers and received by resident workers. Investment income includes income from external financial assets owned by residents and payments on external obligations to non-residents. This category includes income from direct, portfolio, and other investments.

Ongoing transfers include humanitarian assistance, technical assistance, and other real value receipts free of charge.

The account of operations with capital of the balance of payments includes capital transfers of various sectors with the unit to migrant money transfers, debt forgiveness and other transfers.

The financial account records transactions with financial assets and liabilities of the country, as a result of which there is a transfer of ownership of external financial assets and liabilities of the republic. Assets include operations related to investments of residents of the Republic of Belarus abroad. The obligations reflect changes that have occurred in non-resident investments in the Republic of Belarus. At the first level of the classification of the financial account, operations are combined into four functional categories: direct investments, portfolio investments, other investments and reserve assets.

Direct investments cover any transactions between direct investors and direct investment enterprises. Direct capital investment operations are further divided into equity investments and equivalent capital, reinvested income and other capital.

Portfolio investments include securities and debt transactions in the form of securities. The latter are divided into bonds and other long-term debt securities.

The category of other investments covers the following components: commercial (trade) loans, medium and long-term capital, short-term capital and other short-term capital. These indicators are considered in the balance sheet by sector of the economy (cash sector, public administration sector, banking sector and other sectors).

Commercial loans include a change in the current debt on export-import operations of business entities of the Republic of Belarus to the outside world, as well as non-resident debt for Belarusian goods delivered by him and the services provided to them. Medium and long-term capital reflects loans guaranteed by the Government and long-term non-guaranteed loans of enterprises. Short-term capital includes changes in foreign assets and liabilities of banks, as well as the attraction and repayment of short-term non-guaranteed loans of enterprises. And finally, the other short-term capital reflects a change in overdue debts to the outside world on attracted loans and energy carriers received in the republic, as well as changes that occurred in the accounts of Belarusian enterprises, open abroad.

The reserve assets item according to the adopted balance of payments methodology includes operations to change the country’s external financial assets, which are under the control of monetary authorities, and at any time can be used to finance the balance of payments deficit.