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.