The Government on Tuesday assumed responsibility for the Law on foreign direct investments with significant impact on the economy. The normative document is likely to be endorsed tomorrow, as the opposition leaders announced they would not resort to a non-confidence vote to hamper this action.
The law will not have immediate effects, as the Government expects the first results no sooner than next year. “Starting this fall, some foreign investments are expected following the endorsement of this law and their outcomes will emerge next year,” Premier Adrian Nastase said on Tuesday.
The law for which the Government has assumed responsibility will apply only to new investments whose value exceeds one million dollars and are performed by natural and legal persons, after the normative document is enforced.
The participation to the direct investment with a significant impact on the economy can only be achieved through domestic or hard currency capital, in cash.
According to Development and Prognosis minister Leonard Cazan, investments currently benefit from a comprehensive legislative frame. As proof, the minister says that investments whose value stands below $1m are regulated by the Law on SME development.
Investments whose value stands between 1 and 10 million dollars are regulated by the direct investments Law, while investments exceeding 10 million dollars are regulated by special measures.
A department for foreign investments boosting, reporting to the Prime Minister, is available for the third category of investments. “Foreigners willing to invest more than 10 million dollars may contact this department and, depending on the situation, other incentives may be granted to them,” Cazan said.
A decision to grant additional incentives for major investments is made through a law draft drawn for each investment, and every such case must be approved by Parliament.