Romania’s total external debt increased by EUR 1.1 billion in the first eight months of this year, to EUR 94 billion.

Of the total amount, the long-term debt was EUR 69.5 billion, down 0.2% compared to the end of December 2016, according to Romania’s National Bank (BNR). The long-term debt had a share of almost 74% in the total debt.

The short-term debt amounted to EUR 24.5 billion, up 5.5% compared to the end of last year.

The state borrowed more this year on the foreign markets to be able to pay for its additional costs, such as wage and pension increases. The long-term debt-service coverage rate reached 21.1% between January and August this year compared to a rate of 30% in 2016. The coverage of imports of goods and services reached 5.9 months at the end of August, compared to 6.3 months recorded on December 31, 2016.

The short-term foreign debt coverage, calculated at residual value, with the central bank's foreign exchange reserves was 86.2% at the end of August, compared to 90.5% at the end of December 2016.

Non-residents’ long-term deposits amounted to EUR 3 billion at the end of August compared to EUR 3.6 billion at the end of December 2016.

editor@romania-insider.com