The current account of the balance of payments had a deficit of EUR 4.34 bln in the first 10 months compared to the same interval of last year, following increases in services and current transfers, accompanied by decreases of incomes, the National Bank of Romania (BNR) announced yesterday. The balance of current transfers increased by EUR 429 M, the one of services by EUR 230 M, while the balance of incomes had a deficit decrease of EUR 469 M.The current account deficit during January-October 2012 was 29.3 pc financed by direct investments made by non-residents in Romania. Foreign direct investments (FDI) at 10 months amounted to EUR 1.27 bln, up from EUR 1.05 bln in the same interval of last year, according to BNR. Equity stakes consolidated with the estimated net loss amounted to EUR 440 M, while intra-group loans were EUR 833 M. PM Victor Ponta said in November that the volume of FDI this year will be smaller or equal to last year’s figure, given the investments expected by the energy sector, Mediafax reports. Foreign investments attracted by Romania were on the decline since the end of 2008 and reached a 9-year minimum in 2011, under the level of 2003, of EUR 1.946 bln.
The short-term external debt down 5.4 pc
BNR also informs that Romania’s medium and long-term external debt was EUR 77.57 bln at October 31 (78.2 pc of the total external debt), up 2.2 pc against December 31, 2011. The short-term external debt was EUR 21.57 bln (21.8 pc of the total external debt), down 5.4 pc against the end of last year. The current account of the balance of payments ended last year with a deficit of EUR 5.68 bln, up 3 pc compared to 2010. The medium and long-term external debt service ratio ran at 30.3 pc in January-October 2012, against 28.8 percent in 2011. At end-October 2012, goods and services import cover stood at 7.3 months, as compared with 7.5 months at end-2011.