Direct investment - directional principle


Direct investment is associated with a resident in one economy (direct investor) having control or a significant degree of influence on the management of an enterprise that is resident in another economy (direct investment enterprise). Following the international standards, the direct or indirect ownership of 10 % or more of the voting power of an enterprise resident in one economy by an investor resident in another economy is evidence of such a relationship. Direct investment consists of transactions/positions of equity and debt instruments (loans, trade credits and advances, other accounts receivable/payable)  between direct investment enterprises and the direct investors or other group affiliated enterprises.

The difference between assets/liabilities presentation (as in the standard components of the balance of payments) and the directional principle presentation is that the later one follows the direction of the investment (claims of these companies on non-resident investors are recorded as decreases/withdrawals of FDI).

The balance of payments data sets are compiled and published according to the international standards in statistics presented in the IMF's Balance of Payments and International Investment Position Manual (sixth edition, BPM6). Further details regarding the main methodological changes and data comparison are available in the Implementing the new Balance of Payments Manual (BPM6).

Cumulative data from the beginning of the year
 

Components 2023 (January - March)* 2024 (January - March)**
eur million, Net values
TOTAL 2,226 2,089
DIRECT INVESTMENT ABROAD 10 -6
Deposit taking corporations, except the Central Bank 0 0
Equity and investment fund shares/units, including reinvestment of earnings 0 0
Debt instruments 0 0
Other sectors 10 -6
Equity and investment fund shares/units, including reinvestment of earnings -5 -2
Debt instruments 15 -4
DIRECT INVESTMENT IN THE REPORTING ECONOMY 2,216 2,095
Deposit taking corporations, except the Central Bank 417 464
Equity and investment fund shares/units, including reinvestment of earnings 411 459
Debt instruments 6 5
Other sectors 1,799 1,631
Equity and investment fund shares/units, including reinvestment of earnings 2,204 1,871
Debt instruments -405 -240
Loans -508 53
Trade credits and advances 50 -305
Other accounts receivable/payable 54 13

*) Revised data
**) Provisional data


Foreign Direct Investment - the Research

In order to determine the Foreign Direct Investment with a high degree of detail, the National Bank of Romania, in co-operation with the National Institute of Statistics, caries out a direct research regarding foreign direct investment.

The main objective of the research is to determine the amount of foreign direct investment (FDI) in Romania based on the balance at the beginning of the year and the flows during the financial year, in resident enterprises set up as direct foreign investment.

The results of the statistical survey are used for the adjustment of the data on foreign direct investment in the balance of payments for the reference year (flows) and data on the international investment position at the end of the reference year (stocks) respectively.

The information is broken down by key sectors of the national economy (NACE Rev.2 since 2008 and Rev.1 in 2007 and previously), development regions and countries of origin. It also provides information on the share of FDI in the form of tangible and intangible assets, the reinvested share of net profits, the contribution of loans and in-kind input to FDI (for non-financial corporations). Information regarding greenfield investment is also collected.

The "Foreign Direct Investment" research collection is available starting 2005 in Regular publications »»» .