Romania: Balance of payments and external debt

In January 2022pthe balance-of-payments current account posted a deficit of EUR 815 million, compared with a surplus of EUR 9 million in the same year-ago period. The breakdown shows that the deficit on trade in goods widened by EUR 868 million, the surplus on services decreased by EUR 22 million, that on primary income shrank by EUR 93 million and the secondary income balance recorded a surplus of EUR 15 million against a deficit of EUR 144 million in the same year-ago period.

National Bank of Romania.
(National Bank of Romania. Credit: Vyk, https://en.wikipedia.org/wiki/File:BNR_-_cl%C4%83direa_nou%C4%83.jpg, CC BY-SA 3.0 RO license)
Balance of payments current account (EUR million)
January – January 2021p January – January 2022p
CREDIT DEBIT BALANCE CREDIT DEBIT BALANCE
CURRENT ACCOUNT (A+B+C) 8,703 8,694 9 10,420 11,235 -815
A. Goods and services 6,934 7,391 -457 8,557 9,904 -1,347
a. Goods 5,102 6,265 -1,163 6,363 8,394 -2,031
b. Services 1,832 1,126 706 2,194 1,510 684
– manufacturing services on physical inputs owned by others 179 16 163 200 13 187
– transport 511 221 290 610 274 336
– tourism-travel 100 190 -90 214 446 -232
– telecommunications, computer, and information services 484 212 272 551 235 316
– other 558 487 71 619 542 77
B. Primary income 1,447 837 610 1,460 943 517
C. Secondary income 322 466 -144 403 388 15

p – provisional data

Non-residents’ direct investment in Romaniae totalled EUR 463 million (compared with EUR 628 million in January 2021), of which equity (including the estimated net reinvestment of earnings) and intercompany lending recorded net values of EUR 577 million and EUR -114 million, respectively.

In January 2022, total external debt increased by EUR 2,826 million, of which:

  • long-term external debt at end-January 2022 ran at EUR 99,294 million (72.4 percent of total external debt), up 2.3 percent against end-2021;
  • short-term external debt at end-January 2022 amounted to EUR 37,788 million (27.6 percent of total external debt), up 1.5 percent from end-2021.

 

Romania’s external debt and external debt service
External debt External debt service, January 2022p
End-2021p End-January 2022p
1. General government 58,686 61,103 653
Currency and deposits 283 248 256
Debt securities 47,214 47,586 372
Loans 11,151 13,230 22
Trade credit and advances 34 35 3
Other debt liabilities 4 4 0
2. Central Bank 3,365 3,393 0
Currency and deposits 0 0 0
Debt securities 0 0 0
Loans 0 0 0
Allocation of SDRs 3,365 3,393 0
Other debt liabilities 0 0 0
3. Deposit taking corporations except the central bank 7,718 7,832 560
Currency and deposits 7,187 7,202 551
Debt securities 511 588 4
Loans 0 0 0
Other debt liabilities 20 42 5
4. Other sectors 25,521 25,744 1,688
Currency and deposits 0 0 0
Debt securities 1,220 1,201 5
Loans 13,353 13,453 974
Trade credit and advances 10,785 10,921 693
Other debt liabilities 163 169 16
I. EXTERNAL DEBT (1+2+3+4)* 95,290 98,072 2,901
II. DIRECT INVESTMENT: INTERCOMPANY LENDING 38,966 39,010 3,484
III. GROSS EXTERNAL DEBT (I+II)
   of which:
134,256 137,082 6,385
Short term 37,213 37,788 5,426
Long term 97,043 99,294 959

p – provisional data
* Except debt instruments related to direct investment

Long-term external debt service ratio ran at 11.2 percent in January 2022 against 16.5 percent in 2021. At end-January 2022, goods and services import cover stood at 4.9 months, as compared to 5.0 months at end-2021.

At end-January 2022, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 86.7 percent, against 82.3 percent at end-2021.

Source: National Bank of Romania

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