The foreign direct investors in Romania derived EUR 9.00 bln net profits and EUR 2.74 bln losses, resulting in a combined figure of EUR 6.26 bln (nearly 2.9% of GDP) in 2020, according to a survey conducted by the National Bank of Romania (BNR) in cooperation with the National Institute of Statistics (INS).

Separately, the foreign direct investors derived EUR 0.59 bln in net interest derived from loans extended to (taken from) local subsidiaries.

This results in a total of EUR 6.85 bln (nearly 3.2% of GDP) net revenues derived by FDI investors from their Romanian subsidiaries.

Out of the EUR 9.00 bln combined net profits derived by the FDI companies (those reporting profits last year), EUR 3.00 bln was retained (as opposed to distributed to foreign shareholders).

This is a third of the profits derived by FDI companies in red and half of the overall profits derived by FDI companies last year.

Separately, the FDI investors decreased their net lending to Romanian subsidiaries by EUR 1 bln. Under BOP6, this counts as negative foreign direct investment.

However, the ‘genuine’ FDI, namely new equity, was just under EUR 1 bln last year.

Overall, BNR reports an overall FDI inflows figure of EUR 3.00 bln: EUR 3.00 bln reinvested earnings plus EUR 1 bln equity contributions minus EUR 1 bln change in the balance of loans. 

(Photo: Wanida Prapan/ Dreamstime)

iulian@romania-insider.com