BNR: Balance-of-payments current account deficit up by 50% to almost EUR 8bn. Total external debt up by EUR 1.492bn

In January – October 2018, the balance-of-payments current account posted a deficit of EUR 7,991 million, compared with EUR 5,267 million in January – October 2017; the deficit on trade in goods widened by EUR 2,041 million, the surplus on services income narrowed by EUR 196 million, the deficit of the primary income balance increased by EUR 170 million, and the surplus of the secondary income balance decreased by EUR 317 million, a release posted on the National Bank’s website reads.

Non-residents’ direct investment in Romania totalled EUR 4,561 million (compared with EUR 4,156 million in January – October 2017), of which equity (including estimated net reinvestment of earnings) amounted to EUR 3,589 million and intercompany lending recorded a net value of EUR 972 million.

In January – October 2018, total external debt increased by EUR 1,492 million, of which:

• long-term external debt at end-October 2018 stood at EUR 68,286 million (69.1 percent of total external debt), down 0.3 percent from end-2017;
• Short-term external debt at end-October 2018 amounted to EUR 30,567 million (30.9 percent of total external debt), up 6 percent against end-2017.

Long-term external debt service ratio ran at 20.6 percent in January – October 2018 against 25 percent in 2017. At end-October 2018, goods and services import cover stood at 4.8 months, as compared to 5.4 months at end-2017.

At end- October 2018, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 75.3 percent, against 79 percent at end-2017, the release concludes.