|BNR issues data on foreign investment
Bucharest Daily News – January 25 , 2006
by Robert Comanoiu
Direct foreign investment in the first eleven months of 2005 totaled 4.436 billion euros, up 105.6% compared with the same period of 2004, when the figure was 2.158 billion euros according to provisional data issued by the National Bank of Romania (BNR).
Initially, BNR had reported direct foreign investments of 2.2 billion euros for the first eleven months of 2004. However, the National Bank changed the calculation methods for foreign investment and revised the statistical data. Thus, the reported value in the January-November 2004 period increased to 4,749 billion euros under the new method.
The new calculation method consists of book-keeping of the profit re-invested by the foreign companies in the account of the direct foreign investments.
The Romanian Agency for Foreign Investments (ARIS) sustains that the decrease of the investments because of the new methodology is not relevant.
“The difference is not important because the calculation was made by comparing the provisional date for 2005 with the final revised data for 2004. During the course of 2006, BNR will issue final revised data for 2005 when we will see that the amount of foreign investment in 2005 was a record one, much higher than that in 2004, surpassing the most optimistic previsions made by ARIS, the National Trade Office Registry (ONRC) or BNR,” shows an ARIS statement.
The ONRC data comply with the information offered by ARIS. These show a 43.6% advance of the nominal capital belonging to foreign companies, meaning 2 billion euros in 2005 compared with 1.4 billion euros in 2004.
ARIS shows that Romania’s attractiveness for the foreign investments was also seen in the number of companies that have a foreign share in the nominal capital, which totaled 10,748 companies.
ARIS estimated a total volume of foreign direct investments for 2005 amounting to 3.2-3.8 billion euros.
For the current year the forecast is 6-6.2 billion euros.
The nominal capital subscribed by the companies with a foreign capital share expresses the total value of the sums subscribed by the associates at the creation of the company and the increase of the nominal capital during the company’s existence.
By Alexandru Alexe
Associated Press (in Bucharest Daily News – August 14, 2005
A billion-euro real estate development in former plum orchards north of Bucharest illustrates the fruits being picked in Romania and Bulgaria, future EU members seeing an economic boom while much of old Europe stagnates.