Romania’s public debt hits 36.9%/GDP at end-August

By bne IntelliNews October 25, 2013

Romania’s general government debt, reported under the ESA methodology, increased by 12.2% y/y [12.8% in euro] to RON 231.33bn [EUR 52.14bn] at the end of August, the finance ministry reported. The public debt thus accounts for 36.9% of the full-year projected GDP*, up from 35.1%** at the end of August 2012 and down from 37.9% at the end of 2012.

While external debt has increased sharply, domestic debt has on the opposite contracted over the past year. Out of the total public debt, external debt accounted for 20.3% of GDP – up from 17.2%** a year earlier and 19.3% at the end of 2012. The domestic public debt on the opposite decreased as a share of GDP to 16.6% from 17.9%** a year earlier and 18.6% at the end of 2012.

Under the national methodology, which also includes borrowing from own reserves as public debt, the stock of general government debt increased by 9.5% y/y to RON 253.7bn [40.5% of GDP]. The stock of debt denominated in local currency rose by only 4.1% y/y to RON 112.4bn, while the stock of forex denominated public debt increased sharply by 14.8% y/y [the exchange rate is calculated for debt expressed in euro] to RON 141.3bn [EUR 31.8bn] at the end of August. The share of forex denominated public debt thus increased to 55.7% of total at end-Aug from 53.4% a year earlier.

* RON 626.2bn officially, or EUR 140.7bn under our estimated year-average exchange rate of RON 4.45 against the euro.

** we recalculated ESA public debt as % of GDP based on nominal debt data released initially and latest revised GDP.

Romania's public debt (ESA, % of GDP)   national methodology
  Total External Domestic total RON mn total EUR mn   % of GDP
2008 13.4% 8.0% 5.4% 69,020 17,306   21.3%
2009 23.6% 11.4% 12.1% 118,428 27,971   29.6%
2010 30.5% 14.9% 15.6% 159,439 37,277   37.1%
2011 34.7% 16.4% 16.9% 193,144 44,712   39.2%
Aug-12 35.1% 17.2% 17.9% 206,103 46,217   39.4%
2012 37.9% 19.3% 18.6% 222,794 50,175   41.0%
Aug-13 36.9% 20.3% 16.6% 231,330 52,140   40.5%
Source: MinFin
* 2013 est GDP=RON 626.2mn          

Related Articles

Romanian software producer Bitdefender takes over French peer Profil Technology

Romanian security technology company Bitdefender has acquired its French peer Profil Technology as part of its expansion strategy on the corporate segment.  The terms of the deal were not ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

EBRD, EIB lend €82mn to Moldova for key gas pipeline toward Romania

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will lend €41mn each and the European Union will add a €10mn grant to fund a pipeline to link ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss