In January – May 2019, the balance-of-payments current account posted a deficit of EUR 3,401 million, compared with EUR 2,564 million in January – May 2018. The deficit on trade in goods widened by EUR 1,476 million, the surplus on services income increased by EUR 116 million, the deficit of the primary income balance narrowed by EUR 778 million, and the surplus of the secondary income balance decreased by EUR 255 million according to the National Bank of Romania‘s press release dated July 15.
As show in the press release, non-residents’ direct investment in Romania totalled EUR 1,491 million (compared with EUR 1,660 million in January – May 2018), of which equity (including estimated net reinvestment of earnings) amounted to EUR 1,476 million and intercompany lending recorded a net value of EUR 15 million.
In January – May 2019, total external debt increased by EUR 4 109 million, of which:
- long-term external debt at end-May 2019 stood at EUR 69,455 million (67.1 percent of total external debt), up 2.2 percent against end-2018;
- short-term external debt at end-May 2019 amounted to EUR 34,071 million (32.9 percent of total external debt), up 8.3 percent from end-2018.
Long-term external debt service ratio ran at 19.5 percent in January – May 2019 against 21.2 percent in 2018. At end-May 2019, goods and services import cover stood at 4.6 months, as compared to 4.9 months at end-2018.
At end-May 2019, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 72.6 percent, against 74.3 percent at end-2018.
Notes: Foreign direct investment: The permanent debt between affiliated financial intermediaries (banks, NBFIs) is not treated as direct investment, but recorded under financial account/other investment.
External debt includes the following debt financial instruments: currency and deposits, loans, debt securities, trade credit and advances, liabilities from insurance, pension, and standardised guarantee schemes, SDR allocation and other liabilities (according to IMF External Debt Statistics Guide for Compilers and Users, 2014).
External direct public debt includes external loans taken directly by the Ministry of Public Finance and local governments in compliance with the legislation on public debt, including the government bonds acquired by non-residents – calculated at market value. The value of holdings by non-residents is estimated as a difference between the total value of bonds issued by the General Government and the total value of holdings by residents reported by the main financial intermediaries on their behalf and on behalf of their clients, according to NBR Regulation No. 4/2014, as subsequently amended and supplemented.
External publicly guaranteed debt includes external loans guaranteed by the Ministry of Public Finance and local governments in compliance with the legislation on public debt.
For further information: NBR– Balance of payments and external debt – May 2019