Direct Investments according to the directional principle
Foreign Direct Investment (FDI) refers to investments in which a foreign investor acquires a significant and long-term interest in a company in another country, usually through ownership of 10% or more of the company’s equity capital.
In addition to equity instruments, FDI also includes debt instruments (such as trade credits and loans, debt securities, and other liabilities) and reinvested earnings (net income minus dividends).
The National Bank compiles statistics on net inflows/outflows of FDI using two methods: the asset/liability principle (also known as FDI based on balance of payments data) and principle of investment direction.
