Romania’s gross external debt rises by EUR 21 bln in 12 months to July

Romania’s gross external debt, including the inter-group loans contracted by FDI companies in Romania from their parent groups, reached EUR 180 billion at the end of July, EUR 21.5 bln more compared to July 2023, according to data published by the central bank BNR.

The debt-to-GDP ratio increased to 53.5% from 52.5% one year earlier.

Out of the EUR 21 bln rise in the external public debt, EUR 14.7 bln was contributed by the government, which has borrowed heavily over the past 12 months, bringing its external debt to nearly EUR 87 bln (25.8% of GDP) – 48.2% of total gross external debt up from 45.5% a year ago.

The central bank, banking system, and other sectors have increased their eternal debt by less than EUR 800 mln over the past 12 months, although they account for some 25% of total gross external debt altogether.

The loans contracted by FDI companies from their parent groups (and counted by FDI) are another major element of Romania’s external debt, namely EUR 48.4 bln (26.8% of total gross external debt) at the end of July 2024 – nearly EUR 6 bln more compared to July 2023.

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