Romania's gross external debt (GED) increased by EUR 6.33 billion in January-August 2020, to EUR 116.1 bln, according to the National Bank of Romania (BNR).

The increase, driven by the Government's Eurobonds, was toned down by the decrease in the short term external debt - the evaporation of deposits held in local banks by non-residents (typically parent financial groups).

The long term external debt increased to EUR 83 bln, 11.8% more than at the end of 2019, while the short-term debt decreased by 6.8% year-to-date to EUR 33 bln at the end of August.

Of the total external debt, the public external debt was EUR 48.8 bln, EUR 9.4 bln more year-to-date.

The private external debt owed by banks and companies reached the value of EUR 33 bln, EUR 606 million less compared to the end of 2019.

The increase in direct public debt was generated by the Finance Ministry's bond issues in nominal amounts of EUR 6.3 bln plus USD 3.3 bln (EUR 2.77 bln) and net public forex borrowing (EUR 606 mln).

The decrease in the market value of Romania's outstanding Eurobonds had an impact of EUR 715 mln (toward lower stock of debt), BNR also announced.

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andrei@romania-insider.com