Foreign direct investments to Romania, down to EUR 1.8 bln in 2011, foreigners cover bulk of exports and imports

Foreign investments to Romania stood at EUR 1.8 billion in 2011, most of which were share capital participations – 83 percent, and the rest were loans from foreign investors. This was down on the EUR 2.2 billion foreign investments recorded in 2010.

At end 2011, the total value of FDI in Romania was at EUR 55.1 billion, with 67 percent covered by share capital participations, including re-invested profit, and the rest were loans from foreign shareholders, according to data from Romania's Central Bank (BNR). Most of the investments were development funding, some 97 percent, the rest being shared between greenfield projects and mergers and acquisitions. Only EUR 27 million were spent on greenfield projects in Romania in 2011, while the M&A market was at EUR 86 million. The Netherlands was once again the main source of foreign investments by end 2011, with EUR 11.9 billion coming from investors registered in The Netherlands – a country known as a tax haven. Austria followed with EUR 9.6 billion in foreign direct investments, and Germany was third, with a stock of EUR 6.2 billion in FDI. Foreign companies made up 71 percent of Romania's exports, and 62 percent of its imports. The bulk of exports were recorded in industry, some EUR 31 billion, a similar value to the imports, which totaled EUR 33.3 billion for foreign-owned companies in Romania. Trade was the second largest area for exports and imports for foreign companies, with a value of EUR 3.3 billion in exports and EUR 8.8 billion in imports. BNR's data came following statistics research on 45,000 foreign – owned companies in Romania. editor@romania-insider.com (photo source: sxc.hu)