Romania’s gross external debt (GED) increased by only 4.5% YoY during 2022, to EUR 142.7 bln at the end of the year, according to data published by the National Bank of Romania (BNR). The GED to GDP ratio thus fell below 50% to 49.2%, down from 56.7% at the end of 2021.

Long-term GED edged up marginally by 0.1% YoY to EUR 97.7 bln, while the short-term GED leapt up by 15.4% YoY to EUR 45.0 bln.

Non-financial private sector’s external debt rose by 6.5% YoY, driven by more trade credit.

Not only that the country’s external debt was diluted by inflation (Romania’s GDP surged by 20% YoY nominally, expressed in euros, despite a more modest advance of less than 5% in real terms), but the bond market hit Romania’s creditors as well: the value of the outstanding bonds issued by Romania (EUR 42.75 bln at the end of 2022) was revised downwards by EUR 10.4 bln to reflect “influences from the fall in the prices of these instruments” according to BNR.

However, unless Romania redeems in advance the outstanding debt while it is priced low, it has to pay it in full at maturity, which makes GED figures slightly misleading or at least incomplete in regard to the actual debt owed by the country.

iulian@romania-insider.com

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