Romania’s ESA public debt-to-GDP ratio up 1pps y/y to 39.5% at end-April 2014

By bne IntelliNews July 9, 2014

Romania’s ESA public debt increased by 10.1% y/y to RON 251.8bn [EUR 56.4bn] at the end of April 2014, the finance ministry reported. The debt to GDP share* increased by 1pps y/y to 39.5%.

In April alone, the country’s external debt expanded by RON 3.62bn [EUR 811mn, 1.5% m/m], driven by the EUR 1.25bn Eurobond. The debt-to-GDP share increased by 0.5pps.

MATURITY. The share of the short-term public debt notably decreased to 5.3% of total at the end of April from 9.4% a year earlier.

INSTRUMENT. By instrument, the share of securities in total public debt increased by 3.4pps to 68.2% at the end of April at the expense of loans that accounted for only 30.3% at the end of the month – 3.2pps lower on the year.

CURRENCY. The currency structure of the public debt has remained roughly the same over the past year, with local currency debt accounting for 41% of total and debt nominated in euro dominating at 48%. The share of USD-denominated debt edged up by 1.5pps to 8.7% after the January USD Eurobond, while the debt denominated in other currency contracted to 2.5% of total from 5.3% a year earlier.

DOMESTIC VS. EXTERNAL. External public debt increased at a below-average rate, by only 8.1% y/y to RON 136.9bn [EUR 30.7bn], at the end of April and its share in total public debt decreased by 1pps y/y to 54.4% at the end of the month. The shift reflects better local borrowing terms as well as the Treasury’s focus on developing the local debt market.

* According to the EU methodology, the debt to GDP ratio was calculated taking into consideration the sum of GDP for the four last quarters.

Related Articles

Romania’s Hidroconstructia starts overseas push with $115mn Jordan contract

Romanian civil engineering company Hidroconstructia has won a $115mn contract with Jordan’s Arab Potash Company, the world’s eighth largest potash producer. Hidroconstructia was founded in ... more

Romanian low cost carrier Blue Air reports 70% hike in passenger numbers

Passenger traffic of Romanian low-cost carrier Blue Air increased 70% y/y to 5mn last year, reported on January 21. The hike was supported by the increase in internal routes ... more

Romania’s Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more