Foreign investment stays away from Romania after having halved in 2009

Foreign direct investment inflows fell to 164 million euros in February, one of the lowest monthly levels since the onset of the crisis, down 19% compared with February last year.

The foreign investment volume in the first two months of 2010 accounts for merely one third of the level of the first two months of 2009, data published by the NBR yesterday reveal.

Foreign direct investment halved last year, reaching 4.8 billion euros, from 9.5 billion euros in 2008.

In the months prior to recession, foreign direct investment would amount to over 600 million euros per month without taking into account the exceptions when they reached 2 billion euros or dropped to 300 million euros. The foreign investment volume includes greenfield investments, capital increases at the companies foreigners already own in Romania and intra-group loans.

The value of foreign investments may significantly fluctuate from one month to another as a result of large intra-group loans.