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Foreign Direct Investment in Romania

Foreign direct investment - VP Connections

The foreign direct investment (FDI) balance in the Romanian economy reached EUR 70,113 million last year, equivalent to slightly more than 41% of the annual GDP, according to The National Bank of Romania, in cooperation with the National Institute of Statistics.

The net FDI flow in 2016 was EUR 4,517 million, equity investments were EUR 3,203 million and the reinvested profits (technically assimilated to a foreign investment) EUR 1,138 million.

  1. FDI net flow in 2016 stood at:
    EUR 4517 million, of which:

    • EUR 4341 million – equity stakes (enterprises’ equity worth EUR 3203 million, plus reinvested earnings worth EUR 1138 million);
    • EUR 176 million – net credit from foreign investors.
  2. FDI stock as at 31 December 2016 amounted to:
    EUR 70113 million, of which:

    • EUR 48964 million – equity stakes, including reinvested earnings (69.8 percent);
    • EUR 21149 million – net credit from foreign investors (30.2 percent).
  3. Income from FDI in 2016

Net earnings from equity participation were EUR 4287 million, representing the net profit of FDI enterprises, tantamount to EUR 7410 million, less the losses incurred by loss-making FDI enterprises worth EUR 3123 million.

Net income from interest computed by subtracting from the interest received by foreign direct investors on loans granted to their enterprises in Romania – either directly or via fellow companies from the interest paid by foreign direct investors for the loans received from their enterprises in Romania – either directly or via fellow companies, stood at EUR 782 million.

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