Foreign direct investments in Romania, up 21% in the first half on reinvested earnings
The total foreign direct investments in Romania (net) increased to EUR 4.37 bln in the first six months of the year (H1), 21% more compared to the same period last year, according to the National Bank of Romania (BNR).
Out of the total amount, only EUR 573 mln was equity investments other than reinvested earnings, 43% less compared to the same period last year. Most of the FDI was formed by reinvested earnings - profits generated by FDI companies and not disbursed as dividends: EUR 2.54 bln, 28% more compared to last year and 58% of the period’s FDI.
Net borrowing of FDI companies from their parent groups doubled yoy to EUR 1.26 bln in H1 and this was counted as FDI as well.
In the rolling 12-month period to June, the overall FDI reached EUR 8.06 bln or only 3.2% of the GDP - and 37% of the period’s CA deficit.
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