Implementation of BPM6 in TurkeyYeşim Şişik

Central Bank of the Republic of Turkey

The Workshop on the Implementation of the 2008 SNA and linkages with BPM6 and GFSM 2014

6 – 8 May 2015

İstanbul

Compilation System

• Legal Framework

• Compilation System, Introduction

• Transition Method

• Changes

• Way Forward

Legal Framework

Official Statistical Program

Compilation System

• ITRS

• Direct Reporting

• Turkish Statistical Institute, Turkstat

Compilation SystemITRSCBRT ITRS

TRIAL BALANCES

SUPPLEMENTARY REPORTS

ED

FDI

Ministry of Economy

Treasury

Transactions of Banks

Transactions of Clients

DIRECT REPORTING

Central Registry Agency

Custodian Bank Reports

TURKSTAT DATA

Telecommunication

Transportation

News Agency

Insurance

Legal Consulting

Foreing Trade Tourism

Trade Credits

Shuttle TradeFreight

BIS

Administrative Data

Processing

Repairs

Freight Ins.

Transition Method

• Map BPM5 to BPM6

• Try to use existing data

• For remaining items• Seek cooperation with Turkstat• Collect new data

Goods and Services

• Reclassifications• Processing and Repairs introduced

• Data provided by Turkstat • For processing, FTS are adjusted• Repairs not included in FTS

• In 2014• Processing $72 million, Repairs $-254 million• Before adjustment; Goods: $63,724 million• After adjustment $63,542 million

Goods and Services

• Reclassifications• Merchanting

• Moved under Goods

• Postal and Courier Services• Moved under Other Transportation Services

Goods and Services

• Travel• Supplementary Breakdown, obtained

from TurkstatFor both business and personal travel Goods Local transport services Accommodation services Food-serving services Other services Of which: Health services Of which: Education services

Income

Nomenclature changes applied

•Primary Income

•Secondary Income• Personal Transfers

• New data introduced, $254 million in 2014, in addition to $838 million Workers’ remittances

• Since 2008, personal $1,138 million since 2008) ($7,128 million since 2008)

Capital Account

• Removal of Migrant’s Transfers

Financial Account

• Sign convention adopted

• Direct Investment• Asset / Liability Basis• Intercompany Lending except

financial institutions

Financial Account

Direct Inv’t: A / L instead of Directional

Turkish parent companies’ direct investment in their foreign affiliates

Non resident parent companies’ direct investment in Turkey

Foreign affiliates’ direct investment in their Turkish parents (Reverse Investment)

Turkish Direct Invesment Companies’ direct investment in parents (Reverse Investment)

Turkish parent companies’ direct investment in their foreign affiliates

Turkish Direct Invesment Companies’ direct investment in parents (Reverse Investment)

Non resident parent companies’ direct investment in Turkey

Foreign affiliates’ direct investment in their Turkish parents (Reverse Investment)

ABROAD In TURKEY

ASSETS LIABILITIES

Financial Account

• New allocations of SDRs • recorded as increases in gross

reserve assets and,• at the same time, in long-term debt

liabilities of the general government as “Net Incurrences of Liabilities”.

BOP Statistics and Government Data

• The Central Bank of Turkey is the fiscal agent and the treasurer of the Government.

• All the receipts and payments of the Treasury are conducted through the FX deposits of the Treasury maintained in the Central Bank.

• Foreign currency debt payment services conducted on behalf of the Treasury is one of the factors determining reserve management policies.

Reserve Assets:

BOP Statistics and Government Data

• Long-term loans received from abroad by the public sector (central government+local governments+nonfinancial public corporations) are compared with the database of the Treasury starting from January 2008.

• Missing transactions that were not determined previously have been revised accordingly.

• In BOP, such transactions are recorded under OI / Loans / Net Inc. Of Liabilities / General Government and Other Sectors items.

Long-term Loans of Public Sector

The relation between BOP AND government data

• Grant revenues received from the EU and the World Bank are cross-checked with the records of the Treasury, and are classified under secondary income.

• The data on loans extended by and repaid to Turkish Government are monitored with other sources (the Treasury, the Official Gazette, newspapers, etc.).

• Regarding primary income account, Reserve Assets and FX Accounts held within the Central Bank are recorded on an accrual basis, in compliance with the balance of payments methodology. (Exceptions: income on Loans and Portfolio Investment of General Government)

Other Issues

Way Forward

• FISIM• Contacted with Turkstat

• Insurance Services• Revision of Direct Reporting Forms

Way Forward

• New Services Survey• Conducted by Turkstat• cooperation among

• Central Bank of Turkey• Ministry of Economy• Turkish Statistical Institutions