Romania's current account deficit falls, external debt increases slightly from end 2011

Romania's current account deficit fell in the first six months of 2012 compared to the first half of last year by 29.4 percent, according to Romania's Central Bank (BNR).

At the end of June 2011, the deficit stood at just over EUR 3.4 billion, while by end – June this year the deficit had narrowed to slightly above EUR 2.4 billion. According to Romania's Central Bank (BNR) the improvement was due to a EUR 224 million increase in the current transfers surplus and a further surplus from services. Medium and long term external debt at end-June 2012 was slightly higher than last year, standing at just under EUR 78 billion or 2.9 percent above the level at the end of 2011. Short term external debt reduced by 6.8 percent to just over EUR 21 billion. Medium and long term debt accounts for the majority of the total – 78.5 percent. Total external debt climbed to a touch over EUR 99 billion at the end of June this year, an increase of EUR 615 million from the end of 2011. Total borrowing from the IMF increased by EUR 38 million during the first six months of 2012, reaching nearly EUR 2.35 billion. The cost of servicing Romania's external debt between January and June this year was slightly above EUR 24 billion. Liam Lever, liam@romania-insider.com (photo source: sxc.,hu)