Foreign Direct Investment Up in Romania

BUCHAREST, Romania - Foreign direct investment in Romania reached a record euro9.1 billion (about US$12 billion) last year, up 75 percent compared to 2005, according to figures published by the central bank on Friday.

Part of the increase was due to the sale of the Romanian Commercial Bank or BCR, to Austria's Erste Bank, with the government receiving euro2.2 billion (US$2.9 billion) in proceeds.

Foreign companies made large investments in the telecommunication industry _ euro1.4 billion (US$1.8 billion), while the service industry received more than euro800 million (US$1050 million).

Other significant investments included the building of a new glass factory by Saint Gobain and real estate purchases and developments by foreign groups, daily Evenimentul Zilei reported.

After years of recession in the 1990s, Romania's economy has expanded rapidly since 2000, with the gross domestic product estimated to have grown by 8 percent in 2006.

chron.com