Provisional estimates for the third quarter of 1997 said Bermuda recorded a balance of payments surplus on current account of $85 million, some $38 million higher than the same period a year before.

The estimates put the total balance of payments picture for the first nine months 20 percent above the total for the entire 1996 year, although the fourth quarter has been generally marked by a deficit.

The figures are contained in the just released quarterly notice of the Bermuda Monetary Authority (BMA).

Residents spent $13 million during the three-month period on overseas expenditure, up 21 percent on the comparative period, and reflecting an increase in payments for overseas medical/dental services, education and general travel.

Investment income payments were $3,000,000 during the quarter, 30 percent higher than in the third quarter of 1996., due to increases in interest payments to non-resident creditors.

Current transfers rose 34 percent to $10 million, as residents increased overseas payments for charitable donations, workers' remittances and maintenance of dependents. Third quarter exports declined $8 million or 42 percent to $11 million when compared with the same period in 1996.

Continuing increases in investment overseas by residents accounted for a 67 percent or $14 million increase in investment income receipts to $35 million.

The ongoing strength of Bermuda's international business sector caused receipts in the professional, managerial and technical services category to rise 37 percent, or by $57 million.

Receipts in the other goods, services and income category increased by 24 percent or $6 million due to higher fees earned by financial services companies.

The BMA said the capital and financial account estimate of $85 million (a change of $119 million compared with the same period in 1996) represented net investment.

In long term investment payments, an exceptional direct investment outflow of $17 million recorded in the third quarter of 1996 was not repeated in the third quarter of 1997 ($1,000,000).

Portfolio investment outflows during the third quarter of 1997 ($38 million) continued at a rate similar to those of the third quarter of 1996 ($42 million).

Purchases by residents of overseas property caused the other investment category to rise by $4 million or 40 percent, from $10 million to $14 million.

Long-term investment receipts did not change significantly during the third quarter of 1997 ($1,000,000) compared with the third quarter of 1996 ($2,000,000).

BUSINESS BUC