Foreign direct investment, up 24 pct in first four months of 2017

Foreign direct investment grew by 23.8 pct in the first four months of this year, as compared to the same period in 2016, to 1.3 billion euro, according to data released on Tuesday by the National Bank of Romania (BNR).

“The direct investments of non-residents in Romania totaled 1.305 billion euro (as against 1.054 billion euro between January and April 2016), of which equity participations (including the estimated reinvested net profit) amounted to 1.507 billion euro, and intragroup loans registered the net negative value of 202 million euro,” reads the document.

According to the National Bank of Romania, the current account deficit increased to 1,416 billion euro in the first four months of this year, by 56.3 pct higher than the level recorded in the same period of 2016.

“In structure, the balance of goods recorded a deficit of 488 million euro, the balance of secondary incomes and the services balance ended with surpluses lower by 428 million euro and 38 million euro, respectively, while the balance of primary incomes registered a deficit, lower by 444 million euro,” mentions the document.

According to it, between January and April 2017, the overall foreign debt increased by 1.709 billion euro. In structure, the long-term external debt amounted to 70.202 billion euro on 30 April 2017 (74.6 percent of total foreign debt), up 1.8 percent as against December 31, 2016.

“The short-term external debt recorded the level of 23.884 billion euro (25.4 pct of the total foreign debt) on 30 April 2017, up 2.1 pct as compared to 31 December 2016. The service rate of the long-term foreign debt stood at 22.3 pct between January and April 2017, as compared with 27.4 pct in 2016. The coverage degree of imports of goods and services on April 30, 2017 was 6.3 months, a level comparable to that of December 31, 2016,” informs BNR.

The short-term external debt coverage, calculated at the residual value, with the BNR’s foreign exchange reserves on April 30, 2017, was of 92.6 pct, as compared to 90.1 pct on December 31, 2016.

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