Reconciliation of vertical discrepancies between financial and non-financial sector accounts

ended

The Croatia would like to achieve reconciliation between non-financial and financial sector accounts which is an important quality aspect and requires the cooperation of financial and non-financial accounts compilers. When executing the tasks, the Croatia will comply with the Regulation (EC) No 1161/2005 of the European Parliament and of the Council of 6 July 2005 on the compilation of quarterly non-financial accounts by institutional sector. ESA 2010 acknowledges the conceptual consistency of financial and non-financial sector accounts and the existence of statistical discrepancies for net lending/net borrowing in practice (see paragraphs 1.126, 5.18, 20.113 of Annex A to ESA 2010 Regulation ). The importance of reducing vertical discrepancies between ESA 2010 tables 6 (annual financial accounts by sector) and 8 (annual non-financial accounts by sector) has been highlighted as one of the priority areas for the work of the Eurostat Task Force on Cross-Domain Consistency, set up by the Directors of Macroeconomic Statistics (DMES) meeting in 2018. The action aims at ensuring higher quality data with the improving of vertical consistency data following the common recommendations developed by the Working Group on Financial Accounts and Government Finance Statistics, Expert Group on Sector Accounts, Task Force on Annual Financial Account. This project would be of significant contribution to achieving goals related to the higher consistency within the tables in the Croatian national accounts system, both financial and non-financial one.