Romania's deficit fell by nearly a billion euros in 2012

Romania's current account deficit was 15.1 percent lower at the end of 2012 than in the previous year. The total deficit was slightly over EUR 5 billion, down from some 5.9 billion at the end of 2011. Both the income and trade balance deficits fell, by EUR 540 million and EUR 96 million respectively, while the services and current transfers surpluses increased by EUR 238 million and EUR 25 million, according to figures recently published by Romania's central bank (BNR). Foreign direct investment in Romania worth just over EUR 1.6 billion, against slightly above EUR 1.8 billion in 2011, covered 32 percent of the current account deficit last year. Out of the total figure, equity stakes consolidated with the estimated net loss amounted to EUR 698 million and intra-group loans to EUR 915 million. Medium and long term external debt rose by 3.7 percent on the end of 2011 to reach some EUR 78.7 billion and accounted for 79.4 percent of the total. Meanwhile, short term debt fell back by 10.2 percent on end-2011 to around EUR 20.4 billion, accounting for the remaining 20.6 percent of the total debt. editor@romania-insider.com (photo source: sxc.hu)