Romania attracts 29 percent less FDI in Q1

Newsroom 14/06/2011 | 15:36

Non-residents’ direct investment in Romania amounted to EUR 444 million in Q1 2011 dropping, by about 29 percent compared to EUR 623 million in January-April 2010, announced the National Bank of Romania on Tuesday. FDI covered 38.5 percent of the current account deficit in the first four months of 2011. Out of the total figure, intra-group loans amounted to EUR 324 million and equity stakes consolidated with estimated net loss to EUR 120 million.

In January-April 2011 the balance-of-payments current account posted a deficit of EUR 1,152 million, 46.4 percent lower than in the same year-ago period, according BNR. The decrease was generated by a drop of the trade deficit by 41.3 percent and the increase in current transfers surplus by 89.8 percent (on the back of net transfers received by the general government).

Medium- and long-term external debt at end-April 2011 stood at EUR 73,723 million (79.3 percent of total external debt), 1.7 percent above the level recorded at end-2010.

Short-term external debt at end-April 2011 totalled EUR 19,300 million (20.7 percent of total external debt), up 4.7 percent from end-2010.

Medium- and long-term external debt service ratio ran at 19.2 percent in January-April 2011, against 33.3 percent in 2010. At end-April 2011, goods and services import cover stood at 7.9 months, as compared to 8.6 months at end-2010.