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August 9th, 2005 Foreign investments up 35% in the first half of 2005
The Romanian Agency for Foreign Investment aims at attracting a volume of foreign direct investments of EUR 3.2 bln - EUR 3.8 bln. August 9th, 2005 CEC expects letters of intent for its privatization by August 31st
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The strategy aims at law and institutional adjustment, the adoption of the EU practices in the field and at streamlining efficiency, transparency and competitiveness of the public procurement system. August 8th, 2005 Romanian Competition Council endorses HVB Tiriac
The merger of HVB Bank and Banca Tiriac resulted in the 4th largest player on the Romanian banking market. August 7th, 2005 Romanian government approves setting up of Holocaust institute
The main activity of the institute is the research into and the examination of the Holocaust. August 4th, 2005 Austrian Chancellor voices conviction that Romania and Bulgaria's accession to EU will happen on January 1, 2007
The themes of interest for the Austrian presidency of the EU - the development of the Danube infrastructures - is advantageous for Romania’s accession to the EU and its economic development. August 2nd, 2005
Romanian bank BCR ready for privatization July 28th, 2005 New harsher law to fight tax fraud
Fiscal evasion will be punished by jail July 26th, 2005 Romania's GDP estimated to advance 8.3% in 2005
Romania's industrial output is expected to advance 5.7% in 2005, while agriculture output is projected to grow by 2.8%. July 6th, 2005 Conditions for foreign direct investment in Romania to be improved
Romanian Agency for Foreign Investments and Foreign Investors Council work together to identify the investment priorities for each area and grant more facilities to investors |
News - full article
July 6th, 2005
Conditions for foreign direct investment in Romania to be improved
The Romanian Agency for Foreign Investments (ARIS) will propose the modification of the law for direct investments and create a legal framework to grant facilities to investors.
According to Ana-Maria Cristina, ARIS president, “the proposal will contain proper systems which will stimulate development in the regions, without which we could not face the competition," added the ARIS official.
In Romania, foreign investments of over one million dollars benefit from exemption on duties for technological equipment acquired for production activities. The Fiscal Code also contains two facilities for investors, regarding the discount of a 20% quota from the investments value and the possibility of accelerated amortization. The three stipulations will be valid till January 1, 2006.
According to ARIS, most foreign investors need land and ask the government to offer subsides in the form of special prices well below the market level. Investors also asked the authorities to build the production facilities, as they did not want to block their money in building. This facility is often given to investors in European countries, said the ARIS president.
In the first four months of the year, foreign direct investments amounted to 485 million euros, a decrease of 30% compared with the similar period of last year, according to data of the National Bank of Romania. "Although statistics show the number of investment projects increased compared with last year, the National Bank reports the sums which entered the local market are lower than last year's," stated Cristina. "It shows investors already on the market re-invested their profits, encouraged by positive results obtained here," she added.
However, according to ARIS forecast, foreign direct investments attracted by Romania by the yearend will amount to 3.2 - 3.8 billion euros. The president of the institution added the agency could modify its estimates positively. "We have a series of greenfield projects under way and will add important sums from AVAS (the Authority for the Recovery of State Assets) from the privatizations that will conclude this year," stated Cristina.
According to a survey carried out by ARIS, most of the investments focus on the western part of Romania. However, the highest value of investments was recorded in the Bucharest region, of 563.4 million euros from the beginning of the year, while the western parts of the country recorded eight investments projects worth over 43.6 million euros. The southern parts of Romania recorded five projects, while the Northeast and the East recorded none.
The Romanian Agency for Foreign Investments stated over 70% of the projects monitored by ARIS is in auto spares domain. "Romania has a real chance to become an important player in this domain in the region," said the agency president.
ARIS is currently developing a strategy to identify the investment priorities for each area and thus enable the authorities to bring each investment in the suitable area. The agency is consulting with the Foreign Investors Council and unions to develop the strategy, which showed a positive reaction and were willing to support investments.
(Source: Bucharest Daily News)
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