The Maltese economy registered a net international investment position of €1.56 billion as at the end of June 2012, the National Statistics Office said.

The International Investment Position (IIP) statement is a summary balance sheet showing the stock of external assets and liabilities of Malta vis-à-vis the rest of the world as at the end of a particular period.

As at June 2012, total foreign assets increased by €2.93 billion over the position prevailing in June 2011, while total foreign liabilities rose by €1.92 billion. This resulted in an overall increase in the IIP of €1.01 billion.

The level of Malta’s total foreign assets abroad amounted to €47.63 billion as at the end of June 2012. Portfolio Investment, accounting for 40.1 per cent of total foreign assets, reached €19.12 billion from €14.68 billion a year earlier.

The improvement was mainly driven by a €4.46 billion increase in debt securities, primarily in bonds and notes.

This was partly offset by a €1.84 billion decline in other investment due to a fall in loans generated by the banking sector.

Total Other Investment reached €26.36 billion, representing 55.3 per cent of total foreign assets.

At the end of June last year, Malta’s foreign liabilities were estimated at €46.07 billion. Other

Investment, accounting for 71.8 per cent of total foreign liabilities, reached €33.08 billion from €31.57 billion in June 2011.

This growth was mainly attributed to a rise in currency and deposits, which also includes loans of the banking sector. Foreign direct investment, representing 26.2 per cent of total foreign liabilities, increased to €12.06 billion from €11.87 billion a year earlier.