Romania’s FDI at end-November grew to 8-year record

Romania’s FDI at end-November grew to 8-year record

Non-residents’ direct investment in Romania totalled EUR 3,928 million in the first eleven months of 2016, up by 22 percent compared to the same period of the previous year, when FDI reached EUR 3,218 million, National Bank of Romania (BNR) data reveal on Friday.

This represents a record level of the last eight years.

Thus, the equity (including estimated net reinvestment of earnings) amounted to EUR 3,089 million and intercompany lending recorded a net value of EUR 839 million, central bank estimates show.

Also, in January – November 2016, the balance-of-payments current account posted a deficit of EUR 3,441 million, compared with EUR 1,237 million in January – November 2015; the goods balance and primary income balance recorded higher deficits, by EUR 1,590 million and EUR 936 million respectively, the surplus on secondary income narrowed by EUR 309 million, while that on services widened by EUR 631 million.

As regards the long-term external debt at end-November 2016 stood at EUR 69,758 million (75.4 percent of total external debt), down 1.1 percent from the level reported at end-2015.

Short-term external debt at end-November 2016 amounted to EUR 22,740 million (24.6 percent of total external debt), up 14.4 percent against end-2015.

In the period under review, total external debt increased by EUR 2,064 million, of which the public debt rose by EUR 983 million and the non-publicly guaranteed debt by EUR 1,381 million, while the monetary authority’s debt declined by EUR 300 million.

Long-term external debt service ratio ran at 25.2 percent in January-November 2016 against 38.5 percent in 2015. At end-November 2016, goods and services import cover stood at 6.4 months, flat from end-2015.

At end-November 2016, the ratio of BNR’s foreign exchange reserves to short-term external debt by remaining maturity came in at 92.3 percent, against 97.9 percent at end-2015./IBNA