Foreign investment in Romania with a record for the first four months

Romania has attracted the record 2.3 billion euros of direct foreign investments during the first four months of the year, which represents a double increase compared to same period of the last year, informed Ziarul Financiar.

The value of foreign direct investment, attracted only in April, are almost 1.6 billion dollar according to the data of the Central Bank of Romania.

This is the highest level of foreign investment attracted in our northern neighbor, in the period January-April last three years. The second greatest achievement was reported in the same period of 2006 when foreign investments were 2.3 billion euro.

The value of foreign investments in April equals that of foreign investments attracted during the first three months of the year. This is mainly due to the amount paid by Enel for finalizing the privatization deal for the electricity distribution company Electrica Muntenia Sud.

At the end of April the Italian company paid 820 million euro to acquire majority share in Electrica Muntenia Sud. The state has received 394.8 million from the transaction, while the remaining 425.2 million euros were used to increase the capital of the newly acquired company.

About 70% of the foreign investments in Romania for the period January - April are investments in equity capital and reinvested earnings, while the rest are loans granted by foreign companies from their local offices.

The share of loans granted within financial or economic groups, decreased by 8% compared to the same period of the last year.

At the same time from the commercial register of the country was reported higher value of investments in share capital. The value of these investments is 1.36 billion, which is almost threefold increase compared to the last year.