January through October 2006, the balance-of-payments current account posted a deficit of EUR 7,748 million, up 48.3 percent against the same year-ago period.
This development can be ascribed mainly to the wider trade deficit, which amounted to EUR 8,732 million, up 52.6 percent from the corresponding period of last year, with imports rising faster than exports (24.7 percent and 16 percent respectively).
- EUR million -
| |
1/01-31/10/2005* |
1/01-31/10/2006** |
| CREDIT
| DEBIT
| NET
| CREDIT
| DEBIT
| NET |
| CURRENT ACCOUNT (A+B+C)
| 25,868
| 31,091
| -5,223
| 31,188
| 38,936
| -7,748
|
| A. Goods and services
| 21,754
| 27,662
| -5,908
| 26,133
| 34,495
| -8,362
|
|---|
| a. Goods (exports fob - imports fob)
| 18,407
| 24,131
| -5,724
| 21,349
| 30,081
| -8,732
|
|---|
| b. Services
| 3,347
| 3,531
| -184
| 4,784
| 4,414
| 370
|
|---|
| - transport
| 963
| 1,279
| -316
| 1,309
| 1,541
| -232
|
|---|
| - tourism - travel
| 693
| 578
| 115
| 813
| 809
| 4
|
|---|
| - other
| 1,691
| 1,674
| 17
| 2,662
| 2,064
| 598
|
|---|
| B. Incomes
| 934
| 3,035
| -2,101
| 1,371
| 3,890
| -2,519
|
|---|
| C. Current transfers
| 3,180
| 394
| 2,786
| 3,684
| 551
| 3,133
|
|---|
* rectified data
** provisional data
The EUR 7,748 million current account deficit was fully covered by inflows from foreign direct investment worth EUR 7.9 billion1 in the first ten months of 2006, compared with EUR 4.2 billion January through October 2005.
Equity stakes and reinvested earnings accounted for two thirds of the total figure, with intra-group loans2 accounting for the remaining one third.
Medium- and long-term external debt3 at end-October 2006 added 8.8 percent against end-2005 to EUR 26,772 million.
Public and publicly guaranteed external debt at end-October 2006 totalled EUR 10,806 million, accounting for 40.4 percent of medium- and long-term debt, compared with 45.8 percent at end-2005.
Non-publicly guaranteed external debt came in at EUR 14,956 million, rising 20.8 percent from end-2005.
Romania's medium- and long-term external debt at end-October 2006 and external debt service January through October 2006
- EUR million -
| |
Medium-and long-term external debt |
External debt service |
|---|
| Balance at 31/12/2005r |
Balance at 31/10/2006p |
1/01-31/10/2006p |
| 1. PUBLIC DEBTa) |
6,935
| 6,902
| 612
|
|---|
2. PUBLICLY GUARANTEED DEBTa),
of which:
|
4,346
| 3,904
| 735
|
|---|
| - public sector
| 4,134
| 3,731
| 696
|
|---|
| - private sectorb)
| 212
| 173
| 39
|
|---|
3. NON-PUBLICLY GUARANTEED DEBT,
of which:
|
12,379
| 14,956
| 2,783
|
|---|
| - public sector
| 601
| 605
| 60
|
|---|
| - private sectorb)
| 11,778
| 14,351
| 2,723
|
|---|
| 4. External debt (1+2+3) (loans, borrowings and the like) |
23,660
| 25,762
| 4,130
|
|---|
| 5. Medium- and long-term deposits of non-residents |
949
| 1,010
| 258e
|
|---|
| Total external debt (4+5) |
24,609
| 26,772
| 4,388
|
|---|
r - rectified data
p - provisional data
e - estimates
a) loans taken or guaranteed by the Ministry of Public Finance in compliance with Public Debt Act
b) financial and non-financial entities with majority private capital
January through October 2006, medium- and long-term external debt service ratio4 ran at 16.8 percent, compared to 20.1 percent in 2005.
At end-October 2006,
import cover5 stood at 6.6 months versus 6.3 months at year-end 2005.
Notes:
- Includes the amount of EUR 2.2 billion from the acquisition of 36.8 percent in BCR capital by Erste Bank in October 2006.
- Loans between the foreign investor and the resident firm.
- External debt balance is subject to monthly revision.
- External debt service ratio is computed as a ratio of medium- and long-term external debt service to exports of goods and services.
- Import cover is computed as a ratio of official reserves of the NBR (foreign exchange + gold) at end of period to average monthly imports of goods and services for the period under review.