Romania’s external debt rises by EUR 19 bln in January-August on strong public borrowing

Romania’s total external debt increased by EUR 18.8 billion in the first eight months of 2025, reaching EUR 222 billion at the end of August, according to data published on October 14 by the National Bank - BNR.

Long-term debt accounted for 77.8% of the total, namely EUR 172.8 billion as of August 31, up 10.5% ytd, while short-term debt reached EUR 49.4 billion, 4.9% up ytd.

Public administration debt totaled EUR 121.9 billion, up EUR 14.9 billion since December 2024, reflecting continued borrowing needs amid high fiscal deficits. The external debt of deposit-taking institutions, excluding the central bank, rose marginally by EUR 0.7 billion to EUR 13.6 billion at the end of August.

Intra-group loans contracted by foreign direct investment (FDI) companies in the country from parent companies reached EUR 51.6 billion.

The long-term external debt service ratio fell to 14.8% in January–August 2025, compared with 21.5% in 2024, suggesting a lower repayment burden despite higher total debt. Romania’s foreign exchange reserves covered 5.9 months of imports at the end of August, slightly up from 5.7 months at the end of 2024.

The coverage ratio of short-term external debt by the BNR’s foreign exchange reserves stood at 102.6%, broadly stable from 103.6% at the end of last year, indicating that the country continues to maintain an adequate external liquidity buffer despite rising indebtedness.

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