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December 7, 2021

FDI keep downward trend – 2.8 times less

During January-February 2010, the balance of payments current account reported a deficit of EUR 754 M, up 64.3 pc year-on-year.

Foreign direct investments (FDI) totaled EUR 466 M in the first two months of the year, 2.8 times less than the EUR 1.32 bln reported a year ago, according to data released by the National Bank of Romania (BNR) yesterday. According to the Central Bank, all the FDI registered in January-February were capital participations.

In February, FDI were cut to nearly half the previous month’s level, down to EUR 164 M from January’s EUR 302 M, BNR data reveal. BNR revised downward the figure for the first two months of 2009, from EUR 1.37 bln to EUR 1.32 bln – higher than the FDI volume reported in January-February 2008, of EUR 995 M. Last year, FDI declined to EUR 4.89 bln – half the amount registered in 2008, covering 96.9 pc of the current account deficit. In 2008, non-residents made FDI in Romania worth EUR 9.49 bln.

On the other hand, the current account deficit of the payment balance soared by 64.3 pc during January-February from a year ago, to EUR 754 M, mainly because of current transfers going down 68.5 pc, according to BNR data. The balance of current transfers declined from EUR 989 M during January-February 2009 to EUR 312 M in the first two months of this year.

Last year, the deficit of the balance of payments’ current account went down 68.7 pc, to EUR 5.05 bln, after a 1.2 pc increase in 2008 to EUR 16.877 bln. In the first two months, services had a negative influence of EUR 138 M, though in the same months of 2009 they had a EUR 3 M contribution to curbing the imbalance. Meanwhile, the payments balance deficit rose by 10.2 pc in the January-February interval, from EUR 323 M to EUR 356 M.

Foreign debt up to EUR 82.35 bln at end-February

Romania’s total foreign debt at end-February topped EUR 82.35 bln, up 2.85 pc from end last year. This takes medium- and long-term foreign debt at February 28 to EUR 67.737 bln (82.3 pc of the total foreign debt), up 3.5 pc from the end of 2009. After the first two months of the year, short-term foreign debt reached EUR 14.6 bln (17.7 pc of the total foreign debt), roughly the same level as at the end of last year.

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