1. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 1 Compilation of BOP Services Lebanon’s Experience

2. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 2 OUTLINE OF PRESENTATION: new implementations and major limitations in compiling international trade in services  Introduction  Legal Framework  Regulatory Framework  Balance of Payments Compilation  Trade in Services  Major Classifications  Data Sources  Organizational & Data Processing  Coverage  Limitations of Data Sources  Recent Developments  Data Availability and dissemination

3. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 3  The Code of Money and Credit (Article# 146) published in 1963 gives the Banque du Liban (BDL) the authority to collect data from the banking and financial sector.  Insurance sector statistics are collected and compiled through the Ministry of Economy and Trade (MOET).  The Central Administration of Statistics (CAS) is the public entity responsible for surveys among the non-financial private sector. Lebanon: Legal Framework

4. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 4  The balance of payments (BOP) is a shared project between BDL and CAS.  The BOP is compiled and disseminated by the External Sector Section (ESS) _ Statistics and Economic Research Department _ at the BDL.  Methodology consistent with the methodology of the International Monetary Fund’s (IMF) fifth edition:  BPM5 presentation since 2002  BPM6 presentation plan: 2016

5. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 5 Lebanon: Regulatory framework BDL circulars relevant to trade in services:  Residence circular: Basic Circular No. 24 (Decision No. 6170) issued on 17 May 1996, amended by virtue of Decision No. 7919 of 7 September 2001.  International Transactions Reporting System (ITRS) circular: Basic Circular No. 90 issued on 4 February 2002.  Payment cards Circular No. 1564 issued on 3 October 1997, amended by Intermediary Circular No. 24 of 26 August 2002, on payments through credit and debit cards and withdrawals through automated teller machines (ATM).

6. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 6 BOP Compilation The BDL is the sole agency designated to generate the balance of payments (BOP) statistics.

7. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 7 Services Account: Major classifications  Transportation  Travel  Communication  Insurance  Construction  Financial  Computer and information  Royalties and license fees  Other business services  Personal, cultural, and recreational services  Government services

8. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 8 DATA SOURCES Available data sources for services: no single data source can ensure that all transactions are captured Ministry of Finance / Customs Ministry of Finance / Customs Ministry of Economy and Trade / Insurance Control Commission Ministry of Economy and Trade / Insurance Control Commission General Security General Security Ministry of Labor Ministry of Labor Banking and financial sector through ITRS reports Banking and financial sector through ITRS reports BDL departments BDL departments

9. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 9 General Security Ministry of labor Transportation Communication, Construction, Financial, Computer and information, Royalties and license fees, Personal, cultural and recreational services, Government services, Other business services ITRS Organization & Data Processing Customs Insurance Control Commission Travel Travel Insurance Insurance Payment Cards MTCs

10. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 10 Coverage: BOP and the four modes of supply of services Mode 1 [cross-border supply] Mode 1 [cross-border supply] Mode 2 [consumption abroad] Mode 2 [consumption abroad] Mode 4 [presence of natural persons] Mode 4 [presence of natural persons] captured through Trade operations captured through Trade operations captured through the ITRS captured through the ITRS captured through the BDL departments captured through the BDL departments captured through Payments Cards circular captured through Payments Cards circular captured through a model for Travel captured through a model for Travel Mode 3 [commercial presence] : not yet captured Mode 3 [commercial presence] : not yet captured FATS a long-term project FATS a long-term project

11. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 11 Bank reports capture only the transactions passing through the banking system thus, cash transactions are missing (estimation for some items) Bank transactions data are at risk of misclassification Existence of a $10,000 threshold in the ITRS report Insufficient data sources: unavailable cross-checking (no enterprise or household surveys), partner countries statistics (Lebanon is a small economy not identified by itself /others). Administrative databases do not always provide the required necessary details Limitations of Data Sources

12. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 12 Recent developments Amendments to the ITRS circular (September 2009) A more detailed list of codes A more detailed list of codes Breakdown by sector expanded: public sector, private sector companies, banking sector, financial sector, embassies & international organizations, households Breakdown by sector expanded: public sector, private sector companies, banking sector, financial sector, embassies & international organizations, households Geographical breakdown by group of countries according to Arab Monetary Fund classification. Geographical breakdown by group of countries according to Arab Monetary Fund classification.

13. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 13 New ITRS Codes for Services Transportation services: Transportation services: Sea transportation: Passenger, Freight, Other Sea transportation: Passenger, Freight, Other Air transportation: Passenger, Freight, Other Air transportation: Passenger, Freight, Other Other transportation: Passenger, Freight, Other Other transportation: Passenger, Freight, Other Travel services: Business, Personal Travel services: Business, Personal Communication services: Postal and courier services, Telecommunication services Communication services: Postal and courier services, Telecommunication services Construction services: Abroad, in Lebanon Construction services: Abroad, in Lebanon Insurance services: Life insurance and pension funding, Freight insurance, Other direct insurance, Reinsurance, Auxiliary insurance services Insurance services: Life insurance and pension funding, Freight insurance, Other direct insurance, Reinsurance, Auxiliary insurance services Financial services Financial services Computer & Information services: Computer services, Information services Computer & Information services: Computer services, Information services Royalties & License fees Royalties & License fees

14. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 14 New ITRS Codes for Services (continued) Merchanting & other trade-related services Merchanting & other trade-related services Miscellaneous Business, Professional & Technical services: Miscellaneous Business, Professional & Technical services: Legal services Legal services Accounting, auditing, bookkeeping and tax consultation services Accounting, auditing, bookkeeping and tax consultation services Business and management consultancy, public relations services Business and management consultancy, public relations services Advertising, market research, and public opinion polling services Advertising, market research, and public opinion polling services Research and development Research and development Architectural, engineering and other technical services Architectural, engineering and other technical services Agricultural, mining, and on-site processing services Agricultural, mining, and on-site processing services Other business services Other business services Personal, Cultural & Recreational services Personal, Cultural & Recreational services Audiovisual & related services Audiovisual & related services Other personal, cultural & recreational services Other personal, cultural & recreational services Government Services: Embassies and consulates, Military units Government Services: Embassies and consulates, Military units

15. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 15 Recent developments (continued) Amendments to the MTCs circular Circular addressed to Money Transfer Companies on inflows and outflows of cash by number of transactions, value and BOP code Circular addressed to Money Transfer Companies on inflows and outflows of cash by number of transactions, value and BOP code New classification: exports, imports, travel/tourism, medical services, education services, workers' remittances, other New classification: exports, imports, travel/tourism, medical services, education services, workers' remittances, other --------------------------------------------- Future Project on travel account Movement of individuals database with the General Security (long-term)

16. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 16  Prior to 2003:  public sector data  Model to estimate private sector data - travel.  Credit cards: Payments and Disbursements at Points Of Sales, ATM & Cashier are provided since 1998  From 2003 and onwards:  data derived from the ITRS were also added. Data Availability

17. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 17 Publication Publication Monthly: Monthly Bulletin, BDL (French, English and Arabic): trade balance data Monthly: Monthly Bulletin, BDL (French, English and Arabic): trade balance data Quarterly: Quarterly Bulletin, BDL (English and Arabic) Quarterly: Quarterly Bulletin, BDL (English and Arabic) Annual: External Sector Annual Report, BDL (Arabic, English and French) Annual: External Sector Annual Report, BDL (Arabic, English and French) Electronic Electronic Internet: http://www.bdl.gov.lb/ Internet: http://www.bdl.gov.lb/http://www.bdl.gov.lb/ Other Online: ICS- IMF Other Online: ICS- IMF BOP is sent upon request to all public and private administrations after BDL authorities approval. BOP is sent upon request to all public and private administrations after BDL authorities approval. BOP report is disseminated yearly to the IMF and the Arab Monetary Fund BOP report is disseminated yearly to the IMF and the Arab Monetary Fund Dissemination

18. Statistics & Economic Research Department - External Sector Section June 3, 2011 MEDSTAT III External Trade and Balance of Payments June 7-10, 2011 - Rome, Italy 18 Thank you