The net direct investments of non-residents (FDI) in Romania fell by some 60% in the first 11 months of 2020 compared to the same period of 2019, to EUR 1.84 billion, according to Romania’s National Bank (BNR), quoted by Romania-Insider.com.
The decline was driven mainly by strong net FDI outflows in February (EUR 1.4 bln, before the state of emergency).
The FDI flows turned positive in May -September (with robust figures in April-May).
While the outflows in February stood for intra-group loans returned by local FDI firms, the inflows in the coming months were driven by profits reinvested by FDI companies.
Overall, the direct investments of non-residents in Romania amounted to EUR 1.84 bln in Jan-Nov, compared to EUR 4.44 bln in January-November 2019.
Out of this, the equity investments, including estimated net reinvested profits, amounted to a net value of EUR 3.81 bln, and the intra-group loans recorded a negative net value of EUR 1.97 bln.
In November alone, the net FD to Romania returned to a positive value of EUR 208 mln after the EUR 5 mln net FDI outflows in October.
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