Foreign direct investments to Romania up 3.3% y/y to EUR 6.3 bln in 12 months to October
<p>The net foreign direct investments to Romania increased by 3.3% y/y to EUR 6.3 billion in the 12 months to October, the central bank (BNR) announced.&nbsp;</p>

<p>The larger financing extended by foreign groups to their Romanian subsidiaries thoroughly explains the improvement: local subsidiaries’ net borrowing from parent groups increased by EUR 863 million in the 12 months to October, compared to the EUR 726 million contraction in the previous 12 months.</p>

<p>The equity FDI, not including the reinvested earnings, contracted by 27% y/y from an already small level to only EUR 1.3 billion in 12 months to October. The reinvested earnings contracted as well, by 18% y/y to EUR 4.2 billion, much less than the 2.1% y/y decline in the FDI companies’ earnings (EUR 11.5 billion) in the 12 months to October.</p>

<p>A broader picture of the FDI situation in Romania shows that the EUR 120 billion stock of FDI in Romania generated EUR 11.5 billion (nearly 10%) earnings, of which EUR 4.1 billion was reinvested.&nbsp;</p>

<p>In the previous 12 months, from EUR 11.7 billion in earnings, the FDI companies in Romania retained EUR 5.1 billion.&nbsp;</p>

<p><em>iulian@romania-insider.com</em></p>

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