Bank Austria: FDI will drop

Foreign direct investments attracted by Romania will drop on medium term, as the privatisation process is drawing to a close, reveals a report issued by Bank Austria Creditanstalt (BA-CA). “Foreign direct investments attracted by Romania in 2004 stood at 5.2 billion euros, the highest level seen ever since the transition period began (…). Similar levels are estimated for 2005 and 2006, as other privatisation projects will be completed,” reads the report. According to BA-CA analysts, the large amount of foreign direct investments was the result of the privatisation process in the last two years. Privatisation of SNP Petrom, of utility distributors Electrica Banat, Electrica Dobrogea, Distrigaz Sud and Distrigaz Nord, as well as of the Banca Comerciala Romana (the Romanian Commercial Bank) contributed to the record level of foreign capital inflows attracted by Romania. BA-CA analysts, however, warn that once the privatisation process is completed, greenfield investments will make up a large part of final foreign direct investments. Mediafax