Romania’s current account deficit increased by 3 percent to 5.6 bln in 2011; FDI totaled EUR 1.9 billion

The National Bank of Romania (NBR) says that Romania’s balance-of-payments current account increased by 3 percent y/y to EUR 5.6 billion in 2011, due to a 22 percent increase in income deficit.  

Foreign direct investments (FDI) decreased by 13.6 percent y/y to EUR 1.9 billion, covering about 34 percent of the current account deficit. Out of the FDI, equity stakes consolidated with estimated net loss totaled EUR 1.4 billion and intra-group loans totaled EUR 487 million.

Medium and long term external debt increased 3.7 percent y/y to EUR 75.6 million last year, while short-term external debt gained 17.6 percent to EUR 22.9 billion.

Service for the medium and long term external debt ran at 27.9 percent in 2011, down from 33.4 percent in the previous year.

Ovidiu Posirca

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