Direct investments law into effect

The law on promoting direct investments that have a significant impact on the economy came into effect once it was published in the Official Gazette, along with the promulgation decree signed by President Iliescu on June 28.

The law is applicable only to new investments, higher than the equivalent of $1,000,000 and made by Romanian natural and legal persons after the law has come in force.

The participation to the direct investment with significant impact on the economy may be made only with liquid capital in ROL or in a freely convertible foreign currency.

The investments may not be made in the financial, banking, insurance-reinsurance sectors, as well as in those sectors regulated by special laws. In case an investment is eligible for incentives granted under several laws, the investor will have to explicitly choose one set of incentives only.

Granting the incentives stipulated in this law entails waiving incentives granted by other laws. The investments made in Romania may not be expropriated, except for public utility reasons. Nastase Cabinet took responsibility for this law in Parliament.