Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Romanians' remittances higher than foreign companies' profit repatriations

In October, remittances by Romanians relocated abroad amounted to 450 million euros, whereas foreign companies repatriated 400 million in profits; both figures stand at half the amount of transfers registered in September, shows data from the National Bank of Romania (BNR). Also in October, the share capital underwritten by foreign companies with local branches was 339.2 million euros, informs daily Ziarul financiar citing data from the National Trade Register Office (ONRC).

The advance of the current account deficit slowed down to 10.9 pct, reaching 14.4 bln euros; with 15.5 bln euros, by 10.2 pct higher than the figure registered over Jan - Oct 2007, the trade balance deficit had the decisive influence on the current account.

This slowdown occurs after the nine-month foreign trade deficit peaked at 14.8 pct - 12.7 bln euros - compared to the similar period of the year before.

In September the current account deficit hit an all-record high of 2.7 bln euros. Exports over the first ten months of the year outpaced imports by 3.1 pct and services declined from 605 million euros at the end of Oct. 2007 to 443 million euros at the end of Oct. 2008.

The current account deficit was covered to an extent of 56.6 pct from foreign direct investments that stood at 8.154 bln euros at the end of Oct., of which capital participations and reinvested profit represented 51.3 pct, and intra-group loans 48.7 pct.

On the backdrop of the international crisis, with liquidity shortage and more expensive financing, the current account deficit will be increasingly hard to sustain on the long term and analysts point to the need of a 10 pct adjustment of the GDP.

A deficit adjustment is unavoidable because nobody will be willing to finance a deficit of 14 pct of the GDP, with foreign resources getting scarcer. According to analysts, the 10 pct imbalance is structural an the difference of 4 pct is given by the deficit in excess, which is mainly the effect of excessive consumption.

 

Sursa: http://www.rompres.ro

Tags: deficit euros account current foreign million bnr

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