Wednesday, April 28, 2010

Romania to Attract EU1 Billion in Investment, London Mayor Says

By Irina Savu

April 28 (Bloomberg) -- Romania will attract 1 billion euros ($1.3 billion) in infrastructure from an international group, Nick Anstee, the Lord Mayor of the City of London said, after he held meetings with investors in Bucharest.

“It’s coming from an international business, I suspect that will be just the beginning, there are others who are keen to invest,” Anstee said yesterday in an interview at the Romanian Finance Ministry, without giving more detail on the group’s name or the timeframe for the investment. “They are looking at the infrastructure, they are here and they are looking to commit significant sums of money, as a starting point in excess of 1 billion euros.”

International companies plan to benefit from the eastern European country’s skilled workforce and its geographical position near the Black Sea for their distribution operations, Anstee said. About 4,000 U.K. companies have already invested a total of 4.5 billion euros in Romania and “we want to continue that.”

Romania suffered its worst recession in at least 20 years, which wiped out gains made in 2008 when the economy grew 7.1 percent, the fastest pace in the European Union, spurred by a lending boom and increased foreign investment.

Foreign direct investment in the first two months in the country more than halved to 466 million euros, compared with 1.3 billion euros in the same period of last year, the Romanian central bank said on April 13. That compared with a record-high 9.5 billion euros in 2008 and 7.2 billion euros in 2007, when the country joined the EU, according to the bank.

No comments: