Foreign investment to reach $2bn

Foreign investment in Romania may reach two billion dollars in 2003, Marian Saniuta, chairman of the Romanian Agency for Foreign Investment (ARIS) told the international investment forum for Central and Southeastern Europe.
“I believe that foreign investment may reach two billion dollars, considering the upcoming privatisation of Banca Comerciala RomA„sna (i.e. Romanian Commercial Bank – BCR) and Petrom, and the investment projects from the industrial parks,” said Saniuta.
According to the ARIS official, this year’s foreign investment revolves around 1.4 – 1.5 billion dollars, accounting for a slight increase as compared to last year, when it amounted to 1.37 billion dollars.
“I feel this would be a good way to end the year, especially since no major privatisation has been concluded since last year’s Sidex deal,” Saniuta said.
In the first seven months of 2003, foreign investment amounted to about 694 million dollars, up 4%. According to the ARIS official, Romania has managed to attract seven billion dollars in foreign investment so far, one billion less than the Russian Federation. However, if compared to Hungary, the Czech Republic or Poland, direct investment in Romania is much smaller: Hungary has managed to attract FDI worth more than 20 billion dollars, although its population is twice smaller than Romania’s.
The foreign direct investment stock accounts for less than 20% of Romania’s gross domestic product, as compared to the 50 percent registered by the Czech Republic or Hungary.
The Romanian Agency for Foreign Investment, the Romanian Foreign Trade Centre, the Foreign Trade Department and the Trade and Industry Chamber of Romania and Bucharest at the end of last week signed a cooperation protocol in order to promote foreign trade and attract foreign capital in the economy.
The protocol aims to improve the legislative framework in the field of exports and investments, to promote exports and the Romanian investment climate and to boost partnerships between the public and the private sector.