## BPM6 Update — Direct Investment Task Team (DITT) Inaugural Meeting (June 9, 2020) — Summary of Discussions

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**Canonical URL:** [BPM6 Update — Direct Investment Task Team (DITT) Inaugural Meeting (June 9, 2020) — Summary of Discussions](https://www.imf.org/-/media/files/data/statistics/bpm6/ditt/ditt-inaugural-meeting-minutes-june-9-2020.pdf)

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### I. Overview of the DITT Terms of Reference (ToR)
- Mandate duration: until March 2022.
- Primary deliverable: Guidance Notes (GNs) on research issues identified in the Compendium adjoining the ToR.
- Coordination requirements:
  - DITT will coordinate closely with the OECD Working Group on International Investment Statistics (WGIIS); outcomes expected to inform the update of the OECD Benchmark Definition of Foreign Direct Investment, fourth edition (BD4).
  - The Balance of Payments Task Team (BPTT) and the OECD WGIIS will review all GNs before public consultation.
  - GNs will be sent, via the BPTT, to the IMF’s Balance of Payments Statistics Committee (Committee) for approval.
  - For issues impacting the System of National Accounts (SNA), the Advisory Expert Group (AEG) will review GNs and the Inter-Secretariat Working Group on National Accounts (ISWGNA) will approve.
  - DITT will coordinate with other Task Teams (via BPTT if necessary), in particular the Globalization Task Team (GZTT); in case of diverging views on cross-cutting issues, the Committee and ISWGNA Chairs will proceed as per the ToR.
- Communication and dissemination:
  - IMF will host a dedicated web page related to the BPM6 update; DITT will have a separate publicly accessible page and a members-only page with login/password for collaboration.
  - Email exchanges remain the preferred method for written consultations within DITT.

Key process notes:
- Once all GNs are approved by the Committee (first phase), Task Teams will not be involved in drafting BPM7 (second phase), though they may be consulted on specific topics; an editor will produce an annotated outline and draft BPM7 chapters using the GNs.
- The BPM7 is intended as an update—not a complete rewrite—with supplementary breakdowns or concepts and more precise guidance; the core BPM6 framework is expected to remain unchanged.

### II. Research Issues Assigned to DITT
- Source of issues: the Committee research agenda.
- Topics and concerns raised:
  - Different treatment of reinvested earnings between the Balance of Payments (BOP) and the SNA.
  - A reconciliation report between the National Accounts (NA) and the BOP was mentioned; the report highlighted existing differences focused mostly on instruments and sectors rather than direct investment (DI). The report will be circulated within the group.
  - Recommendations made in the GNs could lead to revisions, which may include any new proposal or no-revision.
  - Sub-national breakdown of DI: important but not relevant to BPM6; can be included in the update of BD4.
  - Issue D16 currently refers only to investment funds; co-chairs will consider broadening coverage for reinvested earnings beyond investment funds, considering practical difficulties in calculating this component beyond DI.
  - Proposal raised to add a new issue: remove debt securities from direct investment; to be considered along with other new issues collected from other Task Teams.

### III. Preparation of Guidance Notes (GNs)
- Approval process and timeline:
  - Two key target dates for producing GNs: the October 2020 and the October 2021 Committee meetings.
  - Not all GNs will be ready for the Committee meetings; some will be approved by written procedure.
  - Overall cycle for producing one GN: 17 weeks (example assumes one GN starting from June 15 through the end of September 2020).
  - Timeline flexibility acknowledged depending on issue complexity and availability of prior research.
- Team composition and volunteer process:
  - GNs will be drafted by teams with a lead author.
  - Members were invited to express interest in contributing; some expressed interest prior to or during the meeting, others were invited to express interest within two days of the meeting.
  - Expression of interest deadline for volunteers extended until Thursday, June 11, 2020.
  - DITT members from countries that raised a specific issue were invited to be lead authors.
- Specific drafting concerns and coordination:
  - Concern expressed about a three-week timeline to draft GNs given workload and issue difficulty; co-chairs indicated timelines can be flexible.
  - Members were invited to share existing materials with the DITT Secretariat even if they do not contribute to drafting.
  - Importance of Special Purpose Entities (SPEs) and Multinational Enterprises (MNEs) for DI noted; these topics are being addressed by the AEG GZTT. The GN on SPEs will draw largely from the Committee’s work; GNs will be circulated for consultation within DITT at some stage.

### IV. Meeting Summary and Concluding Remarks
- Coordination and topic management:
  - DITT will coordinate with GZTT for topics of common interest (MNEs and SPEs).
  - Co-chairs will consider broadening treatment of retained earnings (issue D16) beyond investment funds.
  - The report on reconciliation between BOP and NA will be circulated within DITT (ECB to circulate).
  - Any proposed new topics will be discussed by the Co-chairs in light of additions suggested by other Task Team members.
- GN production principles and mandate close:
  - GNs to be concise per the ToR despite extensive underlying research.
  - Alternative GN assignments will involve bilateral consultation of affected volunteers.
  - DITT will agree on topics targeted for this year’s Committee meeting; remaining topics will be considered before or at next year’s meeting.
  - Work on all GNs will start once all assignments are agreed.
  - DITT mandate ends when all GNs are finalized, although selected consultation can occur with authors or teams during the BPM7 drafting phase.
  - DITT members encouraged to send any additional questions or comments.

### Attendance (selected)
- Co-chairs: Mr. Artak Harutyunyan (IMF); Mr. Krzysztof Makowski (OECD–National Bank of Poland).
- Secretariat: Ms. Padma Hurree-Gobin (IMF); Ms. Maria Borga / Ms. Emilie Kothe (OECD).
- Attendees included representatives from: Australian Bureau of Statistics; Banco Central do Brasil; Statistics Canada; Banque de France; Deutsche Bundesbank; Bank of Japan; Banque Centrale du Luxembourg; Central Bank of the Russian Federation; Banco de Espana; UK Office of National Statistics; US Bureau of Economic Analysis; South African Reserve Bank; Bank of Zambia; European Central Bank; European Commission, Eurostat; UNCTAD; IMF staff.
- Absent: Ms. Yang Can (State Administration of Foreign Exchange (SAFE)).

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/ditt/ditt-inaugural-meeting-minutes-june-9-2020.pdf_