Romania’s public debt exceeds 50% of GDP at end-May

Romania’s general government debt exceeded the 50%-of-GDP threshold at the end of May 2023, when it rose to RON 731.28bn compared to RON 712.12bn lei in the previous month, according to data publishedby the Ministry of Finance.

The medium and long-term debt increased to RON 697.84bn from RON 679.87bn in April 2023, and the short-term debt increased to RON 33.44bn, from RON 32.25bn in the previous month.

Most of the public debt, namely RON 609.37bn, was represented by government bonds. The loans amounted to only RON 110.4bn.

As regards the currency, the debt denominated in euro amounted to the equivalent of RON 312.4bn, the debt denominated in national currency was RON 342.3bn, and the debt denominated in US dollars amounted to the equivalent of RON 75.4bn.

According to the law on fiscal responsibility, when the debt threshold of 50% of GDP is exceeded, a series of special measures are triggered, including a ban on hiring in the budgetary sector and measures to reduce public spending on goods and services, Curs de Guvernare points out.

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