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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Romania’s borrowing cost is double compared to euro area countries

The interest expenditures generated by Romania's public debt will rise by 13% to EUR 3.1 billion this year and by another 26% to EUR 3.9 bln in 2021, according to a forecast of the European Commission.

The increase in interest expenses for Romania is among the highest in the EU, Profit.ro reported. The drivers are Romania's still high borrowing costs compared to the euro area and the rapidly rising public debt due to wide public deficits.

The interest paid by Romania for its public debt this year accounts for some 1.5% of GDP - a ratio that is very close to that seen in the euro area.

However, Romania's public debt to GDP ratio is just over half that in the euro area: it will reach some 46.5% at the end of the year (up from 39.2% at the end of 2019), compared to an 85% debt to GDP ratio in the euro area. This reflects the high, roughly double, cost paid by Romania for its public debt compared to the euro area: some 3.7% (an average for the local and foreign currency debt) versus 1.85% in the euro area.

iulian@romania-insider.com

(Photo source: Pexels.com)

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Romania’s borrowing cost is double compared to euro area countries

The interest expenditures generated by Romania's public debt will rise by 13% to EUR 3.1 billion this year and by another 26% to EUR 3.9 bln in 2021, according to a forecast of the European Commission.

The increase in interest expenses for Romania is among the highest in the EU, Profit.ro reported. The drivers are Romania's still high borrowing costs compared to the euro area and the rapidly rising public debt due to wide public deficits.

The interest paid by Romania for its public debt this year accounts for some 1.5% of GDP - a ratio that is very close to that seen in the euro area.

However, Romania's public debt to GDP ratio is just over half that in the euro area: it will reach some 46.5% at the end of the year (up from 39.2% at the end of 2019), compared to an 85% debt to GDP ratio in the euro area. This reflects the high, roughly double, cost paid by Romania for its public debt compared to the euro area: some 3.7% (an average for the local and foreign currency debt) versus 1.85% in the euro area.

iulian@romania-insider.com

(Photo source: Pexels.com)

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