Non-residents’ direct investment in Romania (the foreign direct investments) in Romania totaled EUR 352 million (compared with EUR 2,697 million in January – June 2019), of which equity (including estimated net reinvestment of earnings) registered a net value of EUR 160 million and intercompany lending recorded a net value of EUR 192 million, according to the latest report by the National Bank of Romania (NBR). This means a decreased by 87% compared to the same period last year.
In January – June 2020, total external debt increased by EUR 5,579 million, of which:
- long-term external debt at end-June 2020 stood at EUR 78,983 million (70.9 percent of total external debt), up 7.2 percent against end-2019;
- short-term external debt at end-June 2020 amounted to EUR 32,469 million (29.1 percent of total external debt), up 0.8 percent from end-2019.
In January – June 2020p, the balance-of-payments current account posted a deficit of EUR 3,497 million, compared with EUR 4,373 million in the same year-ago period. The deficit on trade in goods widened by EUR 1,127 million, the surplus on services increased by EUR 376 million, the primary income balance recorded a positive contribution of EUR 1,123 million, and the surplus of the secondary income balance rose by EUR 504 million.
Long-term external debt service ratio ran at 18.1 percent in January – June 2020 against 18.6 percent in 2019. At end-June 2020, goods and services import cover stood at 5.7 months, as compared to 4.6 months at end-2019.
At end- June 2020, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 80.0 percent, against 73.8 percent at end-2019.