In May, Standard & Poor's Ratings Services upgraded Romania's ratings to investment grade citing rapid progress in external position. The country’s long-term sovereign bond rating was raised one step to BBB-, the lowest investment grade, which puts it on par with Russia, Brazil and Spain.
The Agency considered that this reflects Romania's rapid progress in improving its external balances. S&P expects the nation's progress toward consolidating the fiscal accounts and bolstering financial sector stability to continue.
Three of the main strong points of Romania are:
- A relatively large domestic market;
- A skilled and inexpensive workforce;
- Its membership of the European Union (since 2007) and its future adoption of the Euro as currency (2019).
Here are a few examples of recent foreign investments:
In June, Somaco Group, owned by Oresa Ventures, acquires for 8 million EUR the Romanian company Europrefabricate - its two production facilities in Timisoara and, respectively, Targoviste.
In July, Travelport American Group, a world leader in the area of travel commerce, announced the purchase of the B2B Hotelzone, a Romanian hospitality technology provider while Facebook acquires for 500 Million USD the Romanian player LiveRail specialised in on-line delivery of video ads.
In August, GDF SUEZ Energy became majority shareholder of Congaz in Romania, by increasing its shareholding from 28.59% up to 85.77%.
Foreign direct investment in Romania in 2013 reached the highest level in four years at 2.7 billion euro, while in Q1 2014 it totalled 570 million euro, up 30.1% from a year earlier.
Are you looking to make an acquisition or a greenfield investment in Romania? Perhaps we should talk.
In the meantime, feel free to consult and download the FRD Center presentation “Doing Business in Romania”