The number of FDI has deteriorated sharply from a year earlier. After first four months, foreign direct investments in Romania climbed 38.1% only to decline 13.9% at the end of first quarter year-on-year.
In first four months 2008, foreign direct investments stood at 3.695 billion euros, which covered only 66% of the current account deficit.
In first four months, equity stakes accounted for 51.2 percent of the total figure, intra-group loans for 40.0 percent and reinvested earnings for 8.8 percent, NBR informs.
Loans between the foreign investor and the resident company have the potential of widening the CA gap, as they will be returned on the due date.
Romania’s balance of payment gap dropped 78.9% in first four months, to 1.18 billion euros, on major contraction of trade deficit.
Last year, foreign direct investments in Romania rose 24.5% up to 9.02 billion euros, covering 53.5% of CA deficit.
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