Deficit in balance of payments worth more than EUR 10 bn
Author: Ernst & Young Romania Published on: 2008-11-06
Current account of balance of payments for Romania recorded a deficit worth EUR 10.006 bn January through August this year, that represents a 1.6% growth when compared to the same interval in 2007, the Romanian National Bank (BNR) announced.
The decisive influence of the current account balance was given by the deficit in the trade balance, which stood at EUR 11.714 bn, which is an increase by 8.1% as against the January-August interval in 2007. The dynamics of exports outrun by 3.7% the dynamics of exports in the first 8 months of the year. The current account deficit in the January-August interval was covered 65% with FDI, which registered EUR 6.50 bn, out of which participations to the capital and reinvested profit represented 53.3%, with the intra-group credits standing at 46.7%.
The foreign debt on a medium and long term recorded on 31 August 2008, the level of EUR 47.461 bn, which is a 23.3% growth as against the level on 31 December 2007. The foreign public debt and publicly guaranteed, hit a balance standing at EUR 10.635 bn on 31 August 2008 and represented 22.4% of the foreign debt ion a medium and long term (as against 26.5% on 31 December 2007). The publicly nonguaranteed foreign debt stood at EUR 30.646 bn on 31 August 2008, that is an increase by 22.3% against that on December 31, 2007. The foreign debt service rate on a medium and long term stood at 24.3% over January-August, compared with 21.8% in 2007. The coverage rate stood at 5.6 months of imports of goods and services on 31 August 2008, as against 6 months on 31 December 2007.