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BNS: Foreign direct investment in Estonia totaled 2.6 billion kroons (EUR 166 mln) in the first quarter of the year, the central bank said today.

Despite the global economic recession, the direct investments made in Estonia in the January-March period were relatively large and made up more than 3 percent of the quarterly gross domestic product, adviser at the Bank of Estonia's monetary policy department Andres Saarniit said.

Estonian residents' direct investments in other countries amounted to 1.8 billion kroons, thus, the inflow of direct investment exceeded outflow by 0.8 billion kroons.

While foreign direct investment in Estonia decreased by nearly a third in comparison with the previous quarter, Estonian direct investment abroad remained more or less on the same level, the central bank noted.

Equity capital investment made up 1.7 billion kroons, reinvested earnings 1.6 billion kroons and growth in loans to foreign direct investors 0.7 billion kroons of total direct investment in Estonia.

Of direct investment abroad, reinvested earnings accounted for 45 percent, intercompany lending for 43 percent, and equity investment for 12 percent.

The growth in direct investment in Estonia was driven mainly by reinvested earnings of credit institutions. Direct investment in real estate, renting and business activities meanwhile decreased.

The main part of direct investments made in Estonia came from Sweden and some, from France and Belgium. Estonian investments were primarily channeled into Latvia and also to Lithuania and Cyprus.

(EUR 1 = EEK 15.65)