Consultant: investment fund canceled Romania plans over recent events

The recent events taking place in the country are determining investors that were looking to set up a presence in Romania to postpone their decision or look at other markets until they see more stability here, according to financial consultancy firm Coface officials, quoted by local news agency Agerpres. "In light of recent events I received yesterday [e.n. Wednesday] several phone calls from international investment funds showing their concern about what is happening in the coming period, because they see less and less predictability. The signals don’t encourage long-term investments. One of the funds even told me they had an EUR 100 million budget allotted for investments, for company takeovers this year in Romania, but they cancelled all investment and put current projects on hold," said Iancu Guda, services director and chief economist with Coface Romania. He added that it is important that the situation stabilizes and that events don't escalate into a political crisis, which, besides the short-term negative effects, sends some very dangerous long-term signals concerning the lack of predictability and discouraging investments. Eugen Anicescu, country manager Coface Romania, says global investors have grown accustomed to shocks in the recent period, and learned to manage them, but this also entails that they shift towards safer markets. "Investors know how to manage instability, but they also have alternatives. They say, ‘yes, I know what to do in case of instability, but why bother and not wait for three months until I make a decision and go somewhere else in the meantime," Anicescu said. According to Anicescu, the global challenge of this year is related to uncertainty, which overlaps at this moment with "a very hot environment in Romania as well." According to him, the uncertainty is generated by two important events of 2016, the Brexit vote and Donald Trump’s election as president of the US. This year’s elections in Germany, France, and the Netherlands could also produce results that might increase uncertainty. The Foreign Investors Council in Romania (FIC), AmCham Romania, and AHK Romania all have issued statements over the past few days expressing concern over the situation created after the passing on Tuesday evening of an emergency ordinance bringing changes to the criminal laws. Foreign Investors Council, concerned about the Romanian Govt.’s decisions on justice AHK Romania: Pardon laws could affect German investments