Romania's current account registered a deficit of EUR 2.6 billion, down 28.6 percent from the same period last year, mainly due to reduced trade deficit by 21.6 percent and increased surplus of current transfers by 63.2 percent, according to Romania’s Central Bank (BNR).

Almost 40 percent of the current account deficit was financed in the first half by the foreigners’ direct investment in Romania, down 17.3 percent over the same period last year. Intra-group loans totaled EUR 696 million, according to BNR.

The country’s external debt on a medium and long term was EUR 75.66 billion at the end of the first half of 2011, 77.9 percent of the total external debt, up 4 percent compared to the level recorded at the end of last year. On short-term, the foreign debt reached EUR 21.45 billion, 22.1 percent of total external debt, up 18.4 percent compared to December, 2010.

The external debt service ratio on the medium and long term was 21.5 percent in the first half, compared to 33.3 percent in 2010, according to BNR.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: sxc.hu)