Main Features of Investment and Investment Finance in Romania

NBR – EIB Conference Bucharest

21 June, 2017

20.9 21.7 22.3 22.4 24.326.4

36.038.4

26.0 25.9 27.1 27.324.7 24.3 24.8

22.7

16.6

-40

-20

0

20

40

60

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1

Gross Fixed Capital Formation

Source: National Institute of StatisticsSource: National Institute of Statistics

annual percentage change

percent of GDP

percent

31 dec. 2009 31 dec. 2010 31 dec. 2011 31 dec. 2012 31 dec. 2013 31 dec. 2014 31 dec. 2015

mil. euro

mil. euro

% mil. euro

% mil. euro

% mil. euro

% mil. euro

% mil. euro

%

Total * 48827 51414 5.3 53723 4.5 57851 7.7 59958 3.6 60198 0.4 64433 7.0

Aport la capitalurile proprii (incl. profituri reinvestite) 35646 35580 -0.2 37081 4.2 39393 6.2 40700 3.3 43243 6.2 45098 4.3

Credite * * 13181 15834 20.1 16642 5.1 18458 10.9 19258 4.3 16955 -12.0 19335 14.0

* soldurile ISD pentru anii 2009 - 2012 au fost recalculate potrivit metodologiei BPM6

* * creditele nete de la investitorii străini direcţi

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

31 dec. 2009 31 dec. 2010 31 dec. 2011 31 dec. 2012 31 dec. 2013 31 dec. 2014 31 dec. 2015

35,646 35,580 37,081 39,393 40,700 43,243 45,098

13,181 15,834 16,642

18,458 19,258

16,955 19,335

mil

ioan

e e

uro

, s

fârş

it d

e a

n

EVOLUŢIA SOLDULUI ISD ÎN PERIOADA 2009 - 2015

Aport la capitalurile proprii Credite

31.8

13.1 12.2

12.2

9.8

6.3 5.7 3.0 2.6 1.8

0.8 0.7

Total economie 64433 milioane euro

Industria prelucrătoare

Intermedieri financiare si asigurări

Comerţ

Construcţii şi tranzacţii imobiliare

Energie electrică, gaze şi apă

Activităţi profesionale, ştiinţifice, tehnice şiadministrative şi servicii suport

procente

18.8

18.6 12.9

10.7

8.4

8.2 7.2

7.1 5.1 3.0

Industria prelucrătoare 20477 milioane euro

prelucrare ţiţei, produse chimice, cauciuc şi maseplasticemijloace de transport

metalurgie

alimente, băuturi şi tutun

fabricare produse din lemn, inclusiv mobilă

maşini, utilaje şi echipamente

procente

59.3

9.0

8.1

7.2 5.9 4.5 3.4 2.6

Total ISD 64433 milioane euro

BUCUREŞTI - ILFOVCENTRUVESTSUD - MUNTENIANORD-VESTSUD-ESTSUD-VEST - OLTENIANORD-EST

procente

56.0

11.9

10.7 6.2 6.6 2.6 2.7 3.3

ISD în întreprinderi greenfield* 36484 milioane euro

BUCUREŞTI - ILFOVCENTRUVESTSUD - MUNTENIANORD-VESTSUD-ESTSUD-VEST - OLTENIANORD-EST

procente

25.0

14.2

12.4 6.9

6.7

5.2

4.2

3.5 2.7

2.5 2.2 2.2 2.1 1.4 1.0 7.8

Total ISD 64433 milioane euro

Olanda Austria Germania

Cipru Franţa Italia

Luxemburg Elveţia Grecia

Statele Unite ale Americii Belgia Spania

Marea Britanie Ungaria Cehia

Alte ţări**

procente

21.5

11.2

16.9 6.0

5.0

7.6

5.4

2.8 1.4

1.5 3.4

2.4 2.8 1.8 1.4 8.9

ISD în întreprinderi greenfield* 36484 milioane euro

Olanda Austria Germania

Cipru Franţa Italia

Luxemburg Elveţia Grecia

Statele Unite ale Americii Belgia Spania

Marea Britanie Ungaria Cehia

Alte ţări**

procente

• During the period under review, the high level of taxation, fiscal unpredictability, and competition further prevailed among the most pressing problems for companies. Moreover, the share of respondents that flagged the availability of staff as a pressing problem widened versus the previous survey round.

The most pressing problems faced by non-financial corporations April through September 2016

• The share of companies that indicated access to finance as a pressing problem increased slightly against the previous round to 16 percent. Looking solely at companies that applied for loans April through September 2016, 17 percent of respondents (marginally down from 18 percent in the previous round) flagged access to finance as a pressing problem.

Main sources of finance for non-financial corporations April through September 2016

• In the period from April to September 2016, the main difficulties faced in accessing financing from banks and/or NBFIs were the overly high level of interest rates and commissions, the requirements regarding the value or type of collateral, and bureaucracy.

Difficulties faced by non-financial corporations that applied for loans in accessing finance from banks and NBFIs in April-September 2016

• Companies continued to rely mainly on internal funds, with around 64 percent of respondents turning to retained earnings/sale of assets or to loans from shareholders or capital increases as a financing source. The appetite for bank financing edged up slightly, albeit remaining one of the less-tapped sources, with 17 percent of companies preferring this means of financing. The use of European funds was insignificant, with 98 percent of firms responding they had not resorted to such funds.

Developments in the main sources of finance of non-financial corporations April through September 2016

0

20

40

60

80

100

Jun.16

Dec.1

6

Jun.16

Dec.1

6

Jun.16

Dec.1

6

Jun.16

Dec.1

6

Jun.16

Dec.1

6

Jun.16

Dec.1

6

Jun.16

Dec.1

6

F1 F2 F3 F4 F5 F6 F7

companies that

did not need thistype of financing

percent

F1 – Retained earnings/sale of assets

F2 – Loans from shareholders or capital increasesF3 – Trade credit

F4 – Overdrafts or credit lines

F5 – Financial leasing or factoring

F6 – Investment loansF7 – Cash loans

decrease

unchanged

increase

• The majority of companies said that they intended to decrease their level of bank debt irrespective of the interest rates (59 percent of firms would not take a loan in lei and 65 percent would not take a loan in euro). These shares were slightly wider than in the previous six-month period (57 percent and 62 percent respectively October 2015 through March 2016).

The cost of financing for non-financial corporations in September 2016