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Newsletter December 2009


Foreign Capital Inflows Increased by 147.8% in 2008
Total at 18.1 billion Euro for 2006-2008

Foreign capital inflows in Greece increased by 40.5 percent, with net inflows soaring 147.8 percent, in 2008, compared with 2007, according to Bank of Greece figures.

This increase demonstrates investor confidence in Greece by important markets, including the EU and USA. Recent initiatives by the Greek government to attract FDI from Russia and Eastern Europe, the Middle East and Asia look promising for the near future. Sectors of interest are energy, telecoms, tourism, transport and manufacturing.  

Despite the global economic crisis, Greece showed upward trends. The positive data on the inflow of foreign capital were presented by Invest in Greece Agency based on a 2008 FDI analysis.

The analysis was done by the Foreign Investment Observatory, a special service offered by Invest in Greece. The Observatory monitors trends and records economic developments using the Bank of Greece data. It also monitors related data from international organisations to have a clear picture at any given time of capital flows.

Total net inflows of foreign capital into Greece—inflows minus outflows—for 2008 were 3.47 bn. Euro compared with 1.40 bn. Euro for 2007, an increase of 147.8%. Total inflows for Greece reached 6.48 bn. Euro compared with 4.61 bn. Euro for 2007, an increase of 40.5%.

For the period 2006-2008, gross FDI inflows reached the impressive amount of 18.10 bn. Euro while net inflows surpassed 9.15 bn. Euro. Outflows of capital from foreign investors established in Greece reached 8.93 bn. Euro. A substantial percentage of these outflows was spent by parent companies in Greece for expansion, and/or to subsidiaries in Southeast Europe. This movement demonstrates the outward looking nature of the Greek economy and highlights its role as a bridge, or springboard, to investment in Southeast Europe.

Despite the continuing financial crisis, which resulted in the decline of investment activity on a global level, the size of FDI in Greece during the 1st semester of 2009 reached a satisfactory level, exceeding 1.7 billion Euro.
The sectors to which FDI was directed during the first six months of 2009 were financial organisations (63%), trade and construction (14%), electricity production and natural gas supply (7%), followed by real estate, education and health, insurance and chemical products.

                             Total FDI Inflows                         Net FDI Inflows

2005:                       3.16 bn. Euro                                 0.50 bn. Euro
2006:                       6.99 bn. Euro                                 4.27 bn. Euro   
2007:                       4.61 bn. Euro                                 1.40 bn. Euro
2008:                       6.48 bn. Euro                                 3.47 bn. Euro

Source: Bank of Greece

Greece witnessed a major increase of investmnet flows during 2008, spanning a wide variety of sectors. Some of the highlights of these inflows are detailed below.

Inflow of 50 million Euro for the participation of Cypriot company ALAPIS FARMA in the capital of mother company ALAPIS SA.
MAY 2008
Inflow of 2,548 million Euro for the acquisition of  19.99% of  Hellenic Telecommunications Organization (OTE) share capital by the German DEUTSCHE TELEKOM
JULY 2008
Inflow of 22 million Euro for the participation of Xanatech Ltd (Cyprus) in the increase of Channel Nine SA share capital
Inflow 103 million Euro for the participation of EMIRATES INTERNATIONAL TELECOMMUNICATIONS LLC in the increase of  FORTHNET share capital
Inflow of 30 million Euro for the acquisition of  “CHRISI EFKERIA” publication by SOUTH EASTERN EUROPE FUND (Cyprus)

Inflow of 26 million Euro, partial amount, for the acquisition of  ALPHA TV station by Germany’s  RTL.
Inflow of  431 million Euro for the transfer from the Public sector of 3.03% of OTE share capital by the Germany’s DEUTSCHE TELECOM

Inflow of 46 million Euro, related to the increase of the participation percentage of France’s CREDIT AGRICOLE in EMPORIKI BANK share capital from 68.2% to 77.5%
Inflow of 28 million Euro from the English company DIXONS for the participation in FOURLIS in KOTSOVOLOS company
Source: Bank of Greece