In January – August 2018, the balance-of-payments current account posted a deficit of EUR 5,830 million, compared with EUR 4,231 million in January – August 2017; the deficit on trade in goods widened by EUR 1,472 million, the surplus on services income narrowed by EUR 123 million, the deficit of the primary income balance contracted by EUR 304 million, and the surplus of the secondary income balance decreased by EUR 308 million, a release posted on Monday on the National Bank of Romania (BNR) website reads.
Non-residents’ direct investment in Romania totalled EUR 2,863 million (compared with EUR 2,955 million in January – August 2017), of which equity (including estimated net reinvestment of earnings) amounted to EUR 2,517 million and intercompany lending recorded a net value of EUR 346 million.
In January – August 2018, total external debt increased by EUR 648 million, of which:
- Long-term external debt at end-August 2018 stood at EUR 67,395 million (68.8 percent of total external debt), down 1.6 percent from end-2017;
- Short-term external debt at end-August 2018 amounted to EUR 30,614 million (31.2 percent of total external debt), up 6.1 percent against end-2017.
Long-term external debt service ratio ran at 21.5 percent in January – August 2018 against 25 percent in 2017. At end-August 2018, goods and services import cover stood at 4.7 months, as compared to 5.4 months at end-2017.
At end-August 2018, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 69.6 percent, against 79 percent at end-2017, the release concludes.