Current account deficit goes up 40% while foreign investments drop in first four months

Romania's current account deficit reached EUR 2 billion in the first four months of the year, up 40 percent on the same period of last year, according to recent data published by the Romanian Central Bank (BNR). The increase was triggered by the 61 percent lower current transfers, which reached EUR 604 million in the first four months of this year. The current account deficit was half financed by the foreign direct investments, which however dropped during these four months. FDI reached EUR 1.135 billion in Romania, down 36 percent compared to the first four months of 2009. Foreign direct investments were mainly made as contributions to social capital, which include the reinvested profit. Only EUR 160 million were intra-group loans. The country's external debt on the average and long term was of EUR 70.4 billion at the end of April, up 7.4 percent on the end of last year. The short-term debt was of EUR 16 billion, after an increase of 10.4 percent.