The balance of payments surplus for the second quarter of 2001 is $60 million less than what it was for the same period last year, according to figures released by the Bermuda Monetary Authority (BMA) yesterday.

At $27 million the figure represents the difference between payments received from abroad and payments made to recipients outside the Country.

For the second quarter of 2000 the surplus was $87 million.

The balance of payments shows the movement of goods, services and financial transactions between the Island and the rest of the world.

BMA figures show that total receipts for the period dropped by $30 million when compared to the same period last year, while payments increased by the same amount.

Total current account payments stood at $441 million for the quarter while receipts stood at $468 million. Almost half ($223 million) of those receipts were payments for professional, manual and technical services. That category accounted for just $25 million in payments abroad.

Travel was the second largest category bringing into the Island $136 million but it was offset by payments out totalling $47 million, leaving a net balance of $89 million - $22 million shy of the net figure for second quarter 2000.

Merchandise worth $202 million were imported, while exports stood at a paltry $9 million, leaving a negative balance, or net outflow, of $193 million. Shipping and other transportation also recorded a net outflow ($24 million) as did other goods and services and current transfers, both at $44 million each.

Investment income came in net at $45 million - $8 million more than for the same period last year.

The capital and current account, which consists of capital transfers, long term investment and short term investment, recorded a net outflow of $5 million. A million dollars of that was a net long term investment outflow, while $4 million was a net short term investment outflow.

The BMA warns that the balance of payments statistics should be regarded with a "suitable degree of caution," because they are drawn from historical and estimated data.

Just 429 companies, partnership and permits applications were approved during the quarter as compared to 620 for the same period last year.

Of these 321 were exempted companies, down by 171 when compared to the second quarter of 2000.

Local companies came in second to exempted companies with 57 applications approved - 10 less than for the same period last year.

But Bermuda registered an additional 1,386 mutual funds during the second quarter - representing continuing increases throughout the last year and a half. During second quarter 2000 just 1,222 mutual funds were added to the pool.