Foreign direct investment in Bulgaria amounted to EUR 2,980.5 million (8.8% of GDP) for January – August 2008, compared to EUR 4,154.1 million (14.4% of GDP) attracted in January – August 2007, preliminary data of the Bulgarian National Bank (BNB) show.

The attracted Equity Capital (acquisition/disposal of shares and equities in cash and contributions in kind by non-residents in/from the capital and reserves of Bulgarian enterprises and receipts/payments from/for real estate deals in the country) for January – August 2008 amounted to EUR 2,131.1 million, which was 71.5% of the foreign direct investment.

It decreased by EUR 261.2 million compared to that attracted in the same period of 2007 (EUR 2392.3 million). The receipts from real estate investments of non-residents amounted to EUR 960.6 million compared to EUR 1,238.4 million for January – August 2007.

The attracted equity capital on privatisation deals with non-residents (that have acquired over 10% of the equity in a Bulgarian enterprise) reported in January – August 2008 did not increase, compared to an increase of EUR 18.6 million in January – August 2007. The attracted equity capital on non-privatisation deals totalled EUR 2,131.1 million in the reporting period, compared to EUR 2,373.7 million for the same period in 2007.

The other capital, net (the change in the net liabilities of the direct investment enterprise to the direct investor on financial loans, suppliers’ credits and debt securities) was positive, amounting to EUR 509.1 million in January – August 2008, compared to a net other capital amounting to EUR 1,512.3 million in the same period of 2007.

It decreased by EUR 1003.3 million compared to that attracted in the same period of 2007. According to preliminary data, the Reinvested Earnings (the share of non-residents in the undistributed earnings/ loss of the enterprise) in January – August 2008 are estimated at EUR 340.3 million compared to EUR 249.4 million in the same period of the previous year. They increased by EUR 90.8 million in comparison with the same period in the previous year.

By country, the largest investments in Bulgaria for the reporting period were those of Austria (13.9% of the total foreign direct investment), the Netherlands (11.3%) and Germany (10.7%).

Direct investment abroad went up by EUR 403.4 million in January – August 2008, compared to an increase of EUR 125 million in January – August 2007, preliminary data show. The equity capital invested abroad in 2008 amounted to EUR 452.4 million, compared to EUR 135.8 million in January – August 2007.