Net foreign direct investments volume is the last years’ lowest

Moldova has registered, in the first six months of 2006, the lowest level of the net volume of foreign direct investments (FDI) in the recent years – 34.23 million USD, according to National Bank’s data. Compared with the first quarter of 2005, FDI net volume has reduced by over 43%, and compared with the first quarter of 2004 - almost 29.6%. The main placement sectors for foreign investors were the communications, constructions and insurances. Non-residents’ investments into the social capital together with the reinvested profit were evaluated to 23.9 million dollars, of them as goods investments – 3,8 million dollars. Net loans from mother-companies were of about 10.34 million dollars in the first quarter of 2006. BNM highlights that the volume of FDI accumulated in the national economy until 31 March 2006 was evaluated to 1,161 billion dollars, of them under subscribed capital– 750 million dollars, reinvested profit – 165,6 million dollars, other capital –245,4 million dollars. Thus, FDI in RM per capita were about 343 dollars. The Moldovan Export Promotion Organization (MEPO) foresees for 2006 a FID volume of 300 million dollars compared with 225.29 million dollars in 2005, 153,9 million dollars in 2004 and 78.29 million dollars in 2003. MEPO forecast for 2006 is considered by the independent experts “too optimistic”. Recently, the Ministry of Economy and Commerce made public the draft on the Investment Attraction and Export Promotion Strategy 2006-2015, establishing that investments attraction and export promotion will be strategic priority of the Government. The document mentions as well that „the real FDI volume attracted into the economy does not correspond either with the potential or the requirements of the national economy development and situation improvement is possible in case when implementing a reasonable policy stimulating investment activity”. The Ministry of Economy and Commerce (MEC) notes that regardless of certain positive trends in attracting investments in RM, compared with the majority of the states of Eastern and South-Eastern Europe and Baltic countries, the FDI volume is much lower. According to BNM data, at the end of 2004, the total FDI volume per capita was in RM about of 269 dollars, while in Poland -1,502 dollars, in Hungary – 3.,693 dollars, Czech Republic – 4,080 dollars, Slovakia – 2,128 dollars, Romania – 747 dollars, Estonia – 2,995 dollars, Latvia – 1,686 dollars, and Lithuania – 1,217 dollars. The Republic of Moldova is still a “looser” in attracting FDI, allocated to the states of the Eastern and South Eastern Europe and Baltic countries.