The net foreign direct investments to Romania increased by 3.3% y\/y to EUR 6.3 billion in the 12 months to October, the central bank (BNR) announced.\u00a0<\/p>\n
The larger financing extended by foreign groups to their Romanian subsidiaries thoroughly explains the improvement: local subsidiaries\u2019 net borrowing from parent groups increased by EUR 863 million in the 12 months to October, compared to the EUR 726 million contraction in the previous 12 months.<\/p>\n
The equity FDI, not including the reinvested earnings, contracted by 27% y\/y from an already small level to only EUR 1.3 billion in 12 months to October. The reinvested earnings contracted as well, by 18% y\/y to EUR 4.2 billion, much less than the 2.1% y\/y decline in the FDI companies\u2019 earnings (EUR 11.5 billion) in the 12 months to October.<\/p>\n
A broader picture of the FDI situation in Romania shows that the EUR 120 billion stock of FDI in Romania generated EUR 11.5 billion (nearly 10%) earnings, of which EUR 4.1 billion was reinvested.\u00a0<\/p>\n
In the previous 12 months, from EUR 11.7 billion in earnings, the FDI companies in Romania retained EUR 5.1 billion.\u00a0<\/p>\n