Non-residents’ direct investment (FDI) in Romania mounted to EUR 1.44 M in January-May this year (as against EUR 1.653 M in January-May 2016), which means a drop by 12.6 per cent, informs the National Bank of Romania in a press release on Friday.
Out of this equity was EUR 1.85 M (including estimated net reinvestment of earnings) and intercompany lending recorded a net negative value of EUR 406 million.
BNR also reported that the total external debt increased by EUR 1,876 million in the first five months of 2017, with the long-term external debt at end-May 2017 standing at EUR 70,026 million (74.3 percent of total external debt), up 1.5 percent from end-2016. The short-term external debt at end-May 2017 amounted to EUR 24,227 million (25.7 percent of total external debt), up 3.5 percent against end-2016.
Also during the first 5 months of the year, the balance-of-payments current account posted a deficit of EUR 1, 969 million, compared with EUR 1 714 million in January – May 2016; the deficit on trade in goods widened by EUR 581 million, the secondary income and services surpluses narrowed by EUR 294 million and EUR 197 million respectively, while the deficit on primary income contracted by EUR 817 million.
Long-term external debt service ratio ran at 23.8 percent in January – May 2017 against 27.4 percent in 2016. At end-May 2017, goods and services import cover stood at 6.1 months, as compared to 6.3 months at end-2016.
At end-May 2017, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 92.4 percent, against 90.1 percent at end-2016.