DIRECT INVESTMENT DOWN BY 73% IN A YEAR

The Netherlands, Russia and Cyprus have poured the largest amounts in our country since the beginning of 2010

Direct investment in Bulgaria for the first ten months of 2010 amounted to €717.7 mln, compared to €2.66 bn for the same period last year, or down by 73% on an annual basis, BNB (Bulgarian National Bank) reported. The volume of direct investment was formed by the assets invested by Bulgarian companies abroad totaling €127.2 mln (the so-called negative investment to be deducted) and foreign capital invested in our country, standing at €844.9 mln.
 

According to BNB data, the largest net direct investment in Bulgaria for the first ten months of the year came from the Netherlands (€1.264 bn), Russia (€101.2 mln) and Cyprus (€108.5 mln). At the same time, companies repaid inter-company loans to their foreign parent companies amounting to €1.113 bn.
 

Central bank data showed a deficit of €190.8 mln in Bulgaria's trade balance for October. The services sector registered a surplus of €90 mln, industry reported a three-fold growth, compared to October 2009. Services showed a surplus of €1.9 bn for the period from the beginning of 2010 till the end of October, up from the €1.34 bn surplus for the same period of last year. However, the overall trade balance for the first ten months of 2010 reported a deficit of €692.6 mln, compared to the €814.1 mln deficit for the same period of 2009.
 

Net transfers in Bulgaria in January-October 2010 stood at €1.29 bn, up from €787 mln for the same period of last year. In October 2010, transfers totaled €49.2 mln, compared to €61.4 mln for the same month of 2009. These include subsidies from the European Union and the financial aid sent by Bulgarian emigrants to their families. From the beginning of 2010 till the end of October, BNB's reserves decreased by €692.6 mln, compared to the decrease of €814.1 mln for the same period last year.