Romania’s gross external debt increased by EUR 22 billion in the first ten months of 2025 to reach EUR 225.5 billion at the end of October, equivalent to 61% of gross domestic product (GDP), according to data published by the National Bank (BNR). Long-term liabilities accounted for 78.7% of the total stock.

BNR data showed that long-term external debt amounted to EUR 177.6 billion at the end of October, up 13.6% compared with December 2024. Short-term external debt stood at almost EUR 48 billion, marking a more modest increase of 1.7% year to date.

The expansion of external liabilities was driven largely by the public sector. 

External debt of the public administration reached EUR 125.8 billion, an increase of EUR 18.8 billion, or nearly 18%, compared with the end of 2024. This reflects continued reliance on external financing to cover fiscal and refinancing needs amid elevated budget deficits.

Despite the higher debt stock, debt service indicators improved over the period. The long-term external debt service ratio declined to 17.1% in January–October 2025, from 21.5% in 2024, indicating a lower burden of repayments relative to export earnings, BNR data showed.

External liquidity buffers also strengthened. The coverage of imports of goods and services stood at 6 months as of October 31, compared with 5.7 months at the end of 2024, supported by higher foreign exchange reserves.

The coverage ratio of short-term external debt calculated at residual maturity with foreign exchange reserves reached 105.2% at the end of October, up from 103.6% at the end of last year. This indicates that Romania’s reserves were sufficient to fully cover short-term external obligations falling due within one year.

iulian@romania-insider.com

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