Foreign direct investments drop by over 23 pct to EUR 887 mln in Jan-Apr

Newsroom 13/06/2016 | 15:02

The foreign direct investment (FDI) in Romania has dropped 23.8 percent during the first four months of the year over the same period of 2015, according to a report by the National Bank of Romania.

Thus, non-residents’ direct investment in Romania totaled EUR 887 million, of which equity amounted to EUR 1.4 billion and inter-company lending recorded a negative net value of EUR 545 million. In April alone FDI posted at EUR 112 million.

During the same period of last year FDI reached EUR 1.16 billion, of the capital contributions of local companies with estimated net profits were EUR 199 million, to which net lending by the parent companies of 965 million euros were added.

In January – April 2016, the balance-of-payments current account posted a deficit of EUR 1.8 billion, as compared with a surplus of EUR 282 million in January – April 2015; the primary income balance and goods balance recorded higher deficits, by EUR 1.7 billion and EUR 742 million, respectively, while the services balance and secondary income balance posted larger surpluses, by EUR 242 million and EUR 100 million, respectively.

Long-term external debt at end-April 2016 stood at EUR 69.9 billion (79.2 percent of total external debt), 1 percent below the level reported at end-2015.

Short-term external debt at end-April 2016 amounted to EUR 18.4 billion (20.8 percent of total external debt), down 4.7 percent against end-2015.

In the period under review, total external debt declined by EUR 1.6 billion, of which non-publicly guaranteed debt decreased by EUR 1,06 billion, the monetary authority’s debt by EUR 331 million and public debt by EUR 223 million.

Long-term external debt service ratio ran at 29.9 percent in January – April 2016 against 35 percent in 2015. At end-April 2016, goods and services import cover stood at 6.3 months, as compared with 6.4 months at end-2015.

At end-April 2016, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 103.5 percent, against 99.5 percent at end-2015.

Natalia Martian

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