Foreign direct investments in Romania climb 43.5% y/y to EUR 7.2bn

Foreign Direct Investments (FDI) in Romania increased by 43.5 percent in the first nine months of the year versus the similar period in 2007, covering 56.6 percent of the current account deficit.

The FDI stood last year at 5.013 billion euros and covered 42.5 percent of the current account deficit.

Capital participations and reinvested profits accounted for 52.7 percent of all this year's FDI, while intra-group loans responded for the remaining 47.3 percent. Loans contracted by Romanian companies from their foreign parents weighed about 3 percent less this year, but can still lead to the further widening of the current account deficit.

The FDI advanced between January and September 10.64 percent more than during the first eight months. At the end of August, they amounted to 6.502 billion euros and covered 65 percent of the current account deficit.

Romania's balance of payments widened during the first nine months of the year by 14.8 percent versus the same interval in 2007, to 12.704 billion euros, especially due to the commercial balance disequilibrium.

Last year FDI registered a 22.3 percent year-on-year drop, down to 7.069 billion euros and covered 41.9 percent of the current account deficit.