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Romania Jan-April Current Account Gap Narrows To EUR1.15B
Romania's current account deficit narrowed 46.4% to EUR1.15 billion in the first four months, from a gap of EUR2.15 billion in the year-earlier month, due to lower trade deficit and higher transfer surplus, central bank data showed Tuesday.Romania's current account deficit plummets by 46.4 pct in first four months of 2011
The current account of the balance of payments reported a 1.152 billion euros deficit in the first four months of 2011, 46.4 percent lower on a year-over-year basis, mainly because of lower deficit of the balance of trade by 41.3 percent and the increase in the transfer payments surplus by 89.8 percent, based on the net transfers of the public administration, according to data from the National Bank of Romania (BNR).
The current account deficit between January and April 2011 was financed by direct investments of non-residents in Romania for 38.5 percent of its value, amounting to 444 million euros (compared to the 623 million between January and April 2010), out of which 324 million euros were represented by intra-group credits and the capital participations consolidated with the estimated net losses amount to 120 million euros.
The medium- and long-term external debt was 73.723 billion euros on April 30, 2011 (79.3 percent of the total external debt), 1.7 percent higher than in December 31, 2010.
According to BNR, the short-term external debt reported on April 30, 2011 a level of 19.3 billion euros (20.7 percent of the total external debt), 4.7 percent higher than December 31, 2010.
The rate of the medium- and long-term external debt service rate was 19.2 percent in January-April 2011, compared to 33.3 percent in 2010. The coverage degree was 7.9 months of goods and services imports on April 30, 2011, compared to the 8.6 months on December 31, 2010, Agerpres informs.