Final Account

Direct Investment records financial flows between resident and non-resident firms that are under a direct investment relationship. A direct investment relationship is established when a Greek firm (direct investor) holds at least 10% in the share capital of a non-resident firm (direct investment firm), or conversely, when a non-resident firm (direct investor) holds at least 10% in the share capital of a Greek firm (direct investment firm).

Direct Investment includes the establishment of a branch as well as real estate investment.

All transactions – following the initial one establishing the direct investment relationship – related to the maintenance, expansion or termination of this relationship, as well as any loans and suppliers’ credit granted between a direct investor and a direct investment firm, are recorded under Direct Investment. Finally, Direct Investment includes retained (reinvested) earnings. If the firms under a direct investment relationship are monetary financial institutions, Direct Investment records only the initial participation in the share capital (if >10%) and any further increase of this participation, but not transactions related to deposits and loans between the two firms

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Transactions are recorded under Direct Investment according to the criterion of the investment’s ‘direction’ (directional principle). Thus, all financial flows between resident direct investors and non-resident direct investment firms are recorded under Direct Investment Abroad, while all financial flows between non-resident direct investors and resident direct investment firms are recorded under Direct Investment in Greece.