Romania’s public debt edged up by only 0.2% in May, to RON 527.5 bln (EUR 106 bln), according to data released by the Ministry of Finance.

But the debt to GDP ratio decreased slightly from 49.9% to 49.7% as the GDP over the past four quarters was revised upward to RON 1,061 bln from RON 1,056 bln.

During 2020, Romania’s public debt to GDP ratio deteriorated from 35.3% to 47.5%.

After the EUR 3.5 bln Eurobond issued by the Government in July is included in the official debt figures, the ratio will cross the 50% threshold, most likely at the end of July.

The 55% of GDP level is indicated by the governor of the National Bank of Romania (BNR) as desirable for the peak.

Speaking after the monetary board meeting on July 7, he said that public indebtedness of under 60% raises no serious concern, but, ideally, it should peak under 55% and then decrease.

(Photo: Lovelyday12/ Dreamstime)

iulian@romania-insider.com