Romania’s external debt rises by EUR 2 bln in the first half of 2021

In January – June 2021, the balance-of-payments current account posted a deficit of EUR 7,040 million, compared with EUR 4,059 million in the same year-ago period, the National Bank of Romania announced today in the “Balance of payments and external debt” report.

The breakdown shows that the deficits on trade in goods and on primary income widened by EUR 1,557 million and EUR 1,110 million, respectively; the surplus on secondary income and that on services decreased by EUR 276 million and EUR 38 million, respectively.

Non-residents’ direct investment in Romania Foreign investments in Romania totalled EUR 3,138 million (compared with EUR 996 million in January – June 2020), of which equity (including the estimated net reinvestment of earnings) and intercompany lending recorded net values of EUR 2,543 million and EUR 595 million, respectively.

In January – June 2021, total external debt increased by EUR 2,096 million, mounting to over EUR 128 billion, of which:

  • long-term external debt at end-June 2021 totalled EUR 92,471 million (72.2 percent of total external debt), down 0.4 percent against end-2020;
  • short-term external debt at end-June 2021 amounted to EUR 35,552 million (27.8 percent of total external debt), up 7.4 percent from end-2020.

Long-term external debt service ratio ran at 17.8 percent in January – June 2021 against 20.1 percent in 2020. At end-June 2021, goods and services import cover stood at 4.8 months, as compared to 5.6 months at end-2020.

At end-June 2021, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 81.4 percent, against 90.7 percent at end-2020.

balancebalance of paymentsdeficitexternal debtforeign investmentsNational Bank of RomaniapaymentsRomania
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