OREANDA-NEWS. September 20, 2011. Direct investment in Estonia grew by 440 million euros during the second quarter of this year, while direct investment by residents of Estonia abroad increased by 29 million euros, the Bank of Estonia said.

Direct investment inflow was by 411 million euros bigger than outflow. Two-thirds of the growth in foreign direct investment was related to flows of intercompany lending between direct investment companies: assets to direct investors decreased, while liabilities increased.

Equity capital investment and reinvested earnings accounted for 16 percent and 17 percent of the direct investment inflow respectively. The low share of reinvested earnings is the result of large withdrawals of dividends, the central bank said.

In the first quarter of the year, FDI in Estonia amounted to 427 million euros and direct investment by residents of Estonia abroad increased to 195 million euro. The FDI balance for the first quarter of 2011 was 232 million euros.

The outflow of portfolio investment was 22 million euros bigger than inflow.

In financial derivatives, outflow surpassed inflow by 15 million euros.