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Lazea (BNR): Romania should set maximum public level debt at around 40pct of GDP
Romania should set a maximum level of acceptability by which it can take the public debt and such level should stand at around 40 percent maybe, the National Bank of Romania's (BNR) chief economist Valentin Lazea said in unveiling the Bruegel report on Monday.
'The capital markets do not treat the countries equally, by the same measuring unit. Ukraine went bankrupt at a public debt of only 37 percent of GDP. It is a crucial idea the fact that the capital markets in this area are fundamentally differently viewed from one country to another and what a country is allowed to do with respect to the public debt is not allowed or accepted to another country. As such, Romania should define a maximum level of acceptability by which it can take the public debt, at around 40 percent maybe and to stop its public debt there, not at 60 percent, not at 80 percent or 100 percent of GDP as it is allowed for other countries,' Lazea said.
Romania's public debt at this end-Sept. stood at 185.28 billion lei (more than 43 billion euros), accounting for 36.22 percent of Gross Domestic Product, show figures released by the Public Finance Ministry.
At end-Dec. 2009, the Romanian public debt totalled 147.33 billion lei or 29.99 percent of GDP.
At the end of this Sept, 43.51 percent of the public debt was in national leu currency terms, 44.1 percent in euro terms, 4.93 percent in dollar terms, 1.37 percent in yen and 6.09 percent in other currencies.