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January 26, 2022

Romania’s public debt doubled in two years

The Romanian government ran into even more debt last year, arguing that it needs more money for the budget and extra funds for pensions and salaries, evz.ro informs. According to Ministry of Public Finance data, the loans contracted from the IMF, EC and local banks, most of them short-term loans, have doubled Romania’s public debt in the last two years. The government borrowed EUR 1.3 bln per month in order to cover its current expenditures. Thus, from a public debt of RON 109.1 bln (21.6 per cent of GDP) at the end of 2008, on December 31, 2010, Romania had a public debt of RON 193.89 bln (37.9 per cent of GDP).

Nevertheless, the financial analysts’ perception regarding the Romanian economy’s evolution in the next six months improved in February, Mediafax informs. Romania’s economic outlook is 4th in Eastern and Central Europe, according to a survey conducted by the ZEW institute and the Erste Group. The ZEW index concerning the analysts’ expectations for Romania’s economy grew by 3.6 points to 33.4 points. For ECE the index grew by 8.3 points to 24.5 points. Romania ranked below Croatia (41 pts), Czech Republic (37.5 pts) and Poland (37.3 pts).

While experts are optimistic in what concerns the Romanian economy’s six-month outlook, the perception on its current situation remains negative and among the region’s lowest (-37.8 pts) despite growing by 12.2 points.

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