Romania’s current-account deficit widens 65.5pc in Q1 2010
The widening is explained as due largely to a 62.8-percent decrease year on year in current transfers surplus. Non-residents’ direct investment in Romania worth 754 million euros (as compared with 1,475 million euros January-March 2009) covered 50.1 percent of the Q1 2010 current account deficit. In the first three months of 2010, out of the total figures, equity stakes (including reinvested earnings) amounted to 650 million euros (as compared with 993 million euros January-March 2009) and intra-group loans to 104 million euros (as compared with 482 million).
Medium- and long-term external debt at end-March 2010 stood at 70,157 million euros (81.5 percent of total external debt), 6.9 percent above the level recorded at end-2009. Short-term external debt at end-March 2010 totalled 15,877 million euros (18.5 percent of total external debt), up 8.8 percent from end-2009.
Medium- and long-term external debt service ratio – computed as a ratio of medium- and long-term external debt service to exports of goods and services – ran at 34.6 percent in the first quarter of 2010, compared with 33.1 percent in 2009. At end-March 2010, goods and services import cover – computed as a ratio of the BNR‘s official reserves (foreign exchange + gold) at end of period to average monthly imports of goods and services for the period under review – stood at 9.8 months versus 8.6 months at year-end 2009.