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January 21, 2021

FDI down 35 pc at 4 months

The current account of the payments balance had a surplus of EUR 54 M in January-April, according to BNR data.

Foreign direct investments amounted to EUR 322 M at 4 months this year, down almost 35 pc against the similar interval of last year, when they topped EUR 494 M, the National Bank of Romania announced yesterday. Intra-group loans totaled EUR 191 M in the given interval and capital contributions consolidated with the net loss were EUR 131 M, according to a BNR press release. April marked the highest level of the foreign capital flow attracted by Romania since the beginning of the year, respectively EUR 111 M. Compared to March, when foreign direct investments were only EUR 48 M (the minimum of the year), in April the advance was 2.3 times higher. In February, investments totaled EUR 60 M and in January EUR 103 M. In April 2012, foreign investments stood at EUR 21 M. Last year, the foreign direct investments attracted by Romania dropped for the 4th year in a row, to EUR 1.6 bln, an 11 pc decline from the EUR 1.8 M level reported in 2011.
The same BNR data reveal that in January-April the current account of the balance of payments had a surplus of EUR 54 M, against a deficit of EUR 1.53 bln in the same interval of 2012, after the reduction of the commercial balance deficit and of incomes and the surplus of the balance of payments, according to BNR. The deficit of the commercial balance decreased by EUR 975 M, that of incomes by EUR 200 M and the surplus of the balance of services was EUR 721 M, against a deficit of EUR 130 M a year ago.
Medium- and long-term external debt at end-April 2013 stood at EUR 80,337 million (79.6 percent of total external debt), 2.1 percent above the level recorded at end-2012.
Short-term external debt at end-April 2013 totaled EUR 20,590 million (20.4 percent of total external debt), up 1.7 percent from end-2012.
Medium- and long-term external debt service ratio ran at 32.7 percent in the first four months of 2013, against 33.5 percent in 2012. At end-April 2013, goods and services import cover stood at 7.6 months, as compared with 7.1 months at end-2012.
BNR considers as FDI the share capital contributed and the reserves pertaining to a non-resident investor which owns at least 10 pc of the subscribed share capital of a resident enterprise, the loans between this investor or the group he belongs to and the company in which he invested, plus the reinvested profit.

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