Bulgaria's FDI Keeps Collapsing, Flimsy in Jan-Feb 2011

Bulgaria's FDI Keeps Collapsing, Flimsy in Jan-Feb 2011

Bulgaria attracted only EUR 53.4 M of foreign direct investment in the first two months of 2011, according to preliminary data of the Bulgarian National Bank (BNB).

The Foreign direct investment in Bulgaria for January - February 2011 was EUR 53.4 M (0.1% of GDP), compared to EUR 214.9 M (0.6% of GDP) attracted in January - February 2010.

Thus, Bulgaria's FDI continues to collapse after the country got only EUR 1.458 B in foreign investments in 2010, and EUR 3 B in 2009, down from the peaks in 2007 (EUR 9 B), and 2008 (EUR 6 B).

BNB data released Friday shows that the attracted Equity Capital (acquisition/disposal of shares and equities in cash and contributions in kind by non-residents in/from the capital and reserves of Bulgarian enterprises and receipts/payments from/for real estate deals in the country) for January - February 2011 amounted to EUR 26.8 M.

It decreased by EUR 54.4 million compared to that attracted in the same period of 2010 (EUR 81.3 M).

The receipts from real estate investments of non-residents amounted to EUR 11.6 M against EUR 15.4 million in January - February 2010.

The other capital, net (the change in the net liabilities of the direct investment enterprise to the direct investor on financial loans, suppliers' credits and debt securities) was negative, amounting to EUR 5.6 M in January - February 2011, compared to a positive other capital, net of EUR 95.2 M in January - February 2010.

In accordance with the preliminary data, the flow difference for the reporting period and for the same period in the previous year was mainly due to the payments on received intercompany credits in accordance with the loan repayment schedules of enterprises.

Based on preliminary data on profit/loss, the Reinvested Earnings (the share of non-residents in the undistributed earnings/ loss of the enterprise) in January - February 2011 were estimated at EUR 32.2 M, against EUR 38.4 M in the same period of 2010.

By country, the largest net direct investments in Bulgaria for the period January - February 2011 were those of Austria (EUR 121.7 M), Switzerland (EUR 19.2 M) and Cyprus (EUR 17.4 M).

According to preliminary data in January - February 2011 Direct investment abroad increased by EUR 16.6 M compared to an increase of EUR 12.9 M in January - February 2010. /Source: Sofia News Agency/

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