Romania's public debt up by EUR 10 bln, or 3% of GDP during Q1
Romania's public debt increased by RON 48.8 billion or nearly EUR 10 billion during the first three months of the year, according to the latest debt report published by the Finance Ministry.
iulian ernst · Journalist
· Updated · 1 min read
Romania's public debt increased by RON 48.8 billion or nearly EUR 10 billion during the first three months of the year, according to the latest debt report published by the Finance Ministry.
The increase accounts for some 3.4% of Romania's annual GDP, but the indebtedness ratio actually increased by only 2pp to 49.2% as the nominal GDP was updated in line with the latest quarterly data.
Romania's government targets a 4.4%-of-GDP budget deficit this year, and the total financing needs for the year are RON 150 bln-160 bln (EUR 30 bln-32 bln).
"At the beginning of the year, there was an interest in Romanian securities, and because the market was favourable, the Ministry of Finance borrowed more. They borrowed more than planned, that's why the debt has increased so much, but the pressure will be weaker in the second half of the year," argues Ionut Dumitru, Raiffeisen Bank chief economist.
(Photo source: Ungureanu Vadim/Dreamstime.com)
