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Current account deficit increased last year by 156 percent
Romania's current account deficit increased last year by 156 percent, to over 1.7 billion euros, while the foreign direct investments (FDI) advanced to 3.03 billion euros, which is by 25.3 percent higher than in 2014, according to a press release by the National Bank of Romania (BNR), sent to AGERPRES on Friday.
The FDI of the non-residents in Romania have counted for 3,035 million euros (compared to 2,421 million euros in 2014), of which the equity investments (including the estimated net reinvested earnings) have recorded 3,340 million euros (against 2,846 million euros in 2014), and the intra-group credits have recorded the negative net value of 305 million euros (compared to 425 million euros in 2014)," the BNR release reads.
In January - December 2015, the current account of balance of payments recorded a deficit of 1.758 billion euros, up by 156pct, compared to 686 million euros in 2014, amid larger deficits of the primary income (by 1.830 billion euros) and of the trade balance (by 1,430 billion euros), partly compensated by the higher surpluses of secondary revenue (by 1,187 billion euro) and services (by 1,001 billion euros).
Long-term external debt at end-2015 stood at 71,056 million euros (78.2 percent of total external debt), down 6.3 percent from end-2014. Short-term external debt at end-2015 amounted to 19,840 million euros (21.8 percent of total external debt), up 4.9 percent from end-2014. In the period under review, total external debt declined by 3,848 million euros, of which public debt by 1,197 million euros, the monetary authority's debt by 1,038 million euros and non-publicly guaranteed debt by 1,613 million euros." the said release adds.
Long-term external debt service ratio ran at 35.4 percent in January-December 2015 against 38.5 percent in 2014. At end-2015, goods and services import cover stood at 6.4 months, as compared with 6.8 months at end-2014.
At end-2015, the ratio of the National Bank of Romania's foreign exchange reserves to short-term external debt by remaining maturity stood at 98 percent, as compared with 88.9 percent at end-2014.