FDI flows

The direct investment flows may include equity transactions between the investor and the direct investment enterprise or between fellow companies (share purchase, capital reduction), the reinvestment of earnings accruing to the owner from the operating profit of the enterprise owned or controlled by the investor, and transactions involving credit and other financing relationships between the parties. These are classified as foreign direct investments because they primarily determined by long-term strategic plans and ownership considerations, which often optimise investment and financing decisions on the level of an entire multinational company group. The intercompany loans, the receivables and payables stemming from the approved and paid dividends, the cash pool and clearing account receivables and payables, the intercompany commercial loans and debt securities, other receivables and payables mostly must be recognised within this relationship.

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