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Romania is making its mark with all the right people and institutions. Standard & Poor, the financial evaluation agency, have recently upgraded Romanias banking industry risk assessment profile, reflecting the healthy growth and profitability of the banking sector. In addition, specialist investors in private equity funds have given the green light to Romania, along with Poland, voting them the most attractive destinations for Western risk capital investment funds.

According to the Wall Street Journal, 100 specialists in private equity funds took part in a poll conducted by Mergermarket and more than two thirds of them agreed that emerging European markets, particular Romania and Poland, will attract larger investments next year than Asia, Russia and South Africa. 71% of those taking part in the poll said that authorities should implement fiscal incentives to stimulate foreign investment and that is exactly what the Romanian government is doing. In an effort to make Romania more business-friendly, they government has approved a new law offering incentives to foreign investors. The law is a response to the staggering 60% annual surge in foreign investment in Romania during the first months of 2008 and means that foreign investors will receive the same incentives as Romanians. The government will also offer aid for investment projects in a range of business sectors within Romania.

This confidence in Romania is underlined by Standard & Poors recent Banking Industry Country Risk Assessment (BICRA) on Romania, which reflects several years of healthy economic growth and massive inflow of foreign investment in the banking sector, creating a healthy base for an increase in available credit. Standard & Poor has also reduced their estimate of the likelihood of economic recession in Romania, reflecting Romanias continuing healthy GDP growth in the face of global economic downturn.

Romania is also keen to expand investment outwards to alternative regions of the country, ensuring balanced development. One of those areas is the city of Cluj-Napoca in north west Romania where some high profile investors, such as Nokia and US company, Emerson Electric, are already established. The Financial Times reports  an air of bullish optimism in Cluj-Napoca, which has been named the No.1 investment location in the world. James Gonzalez, Market Analyst at Obelisk says that their research shows that Cluj is becoming the IT hub of Romania. “We have responded by offering our latest project, the Fontana Residence in Cluj-Napoca to investors.