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Foreign investment in Romania expected to halve

Foreign investment in Romania will halve to 4-4.5 billion euro, from 8 billion euros, Governor of the National Bank of Romania (BNR) Mugur Isarescu said on Thursday.

'Capital inputs versus capital outputs in Romania will tend toward zero. In the private non-banking sector there will be net outflows by leasing companies. We expect the flows in the balance of payments to be negative. There will be a financing gap in the private sector. This is one of the reasons why Romania has resorted to a loan from the International Monetary Fund (IMF),' said Isarescu.

He added that Romania has borrowed money off the IMF on preponderantly external grounds.

Romania is to receive external foreign assistance worth 19.95 billion euros that covers two years.

The International Monetary Fund will grant a loan of 12.95 billion euros; the European Union will contribute 5 billion euros, the World Bank 1.5 billion euros, and other financial institutions will provide another 1 billion euro.

 

Sursa: http://www.rompress.ro

Tags: romania billion foreign euros euro bnr

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