Institutional Sector Accounts Non-Financial and Financial 2019

The flow of private sector credit (defined as the sum of consolidated transactions in Table 2.6 - AF.3 Debt Securities and AF.4 Loans) was -9.1% of GDP during 2019. As shown in Figure 3.2, this was well within the threshold of +14% set under the Macroeconomic Imbalance Procedure. A positive credit flow equates to a net incurrence of debt during the year whereas a negative sign indicates a net running-down of debt during the same accounting period. The negative credit flows occurring in the Household sector since 2008, cumulatively amounting to €47.8bn, correspond to a net repayment, primarily, of mortgage related debt.

A breakdown of the Non-Financial Corporations sector (S.11) financial balance sheet by ownership, along with corporate inversions/redomiciled PLCs, is presented in Table 2.9.

The total liabilities of foreign-owned NFCs, relative to the size of the sector, can be seen in Figure 3.3 (2012 – 2019). In 2019, foreign-owned NFCs make up 54.2% of the NFC sector. Note that the percentage of redomiciled PLCs is 16.1% in 2012 and increases to 28.4% by 2015, this is related to the increase of capital assets in Ireland in 2015, as discussed above.

Figure 3.4 shows the Net Financial Worth (BF.90) for S.11 proportioned by ownership (2012 – 2019). The trend shows that before 2015 much of the Net Financial Worth can be attributed almost evenly between foreign and Irish-owned entities, while the substantial change that occurs during 2015 is largely attributed to the foreign-owned NFC group (increasing from 56.4% in 2014 to 70.5% in 2015 of the total Net Financial Worth). In 2019 this proportion stands at 83.7%.

¹Defined as the sum of consolidated stock positions of Table 2.8 - AF.3 Debt Securities and AF.4 Loans.

²Defined as the sum of the S.11 Non-Financial Corporations sector and the S.14 + S.15 Households and Non-Profit Institutions Serving Households sector.