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September 30, 2020

Court of Accounts’ Report: Romania’s public debt stood at 44.1 pct of GDP, on Dec 31, 2014

Romania’s public debt stood at 44.1 per cent of the Gross Domestic Product (GDP), 65.94 billion euros, on December 31, 2014, compared with the 54.38 billion euros recorded at end-2012, showed the Court of Accounts’ Report on the management of the public debt over 2012-2014 by the Ministry of Public Finances (MFP), as published on Friday.

‘Romania’s public debt maintained its upward trend in the targeted time span, having reached 295,578.7 million lei (65,946.5 million euros) on December 31, 2014, compared to the 240,842.5 million lei (54,382.2 million euros) recorded on December 31, 2012),’ shows the document.

Over 2012-2014, the domestic governmental public debt was integrally held by the private banking sector, with the authors of the report believing that ‘a vicious circle was thus created between the public debt and the consolidation of the banking industry.’

The highest weight in the domestic public debt structure by destinations belongs to the debt contracted through the financing of the budget deficit and refinancing of the public debt, while the financing of projects only had an insignificant weight, of 0.1 per cent of the total domestic governmental public debt.

According to Eurostat, in the end of 2013, a number of 16 European member states exceeded the reference value of the public debt of 60 per cent of the GDP established by the Maastricht Treaty, with an average indebtedness level of 85.4 per cent of the GDP at EU level and 90.9 per cent of the GDP in the Eurozone.

Romania ranked 4th in the end of 2013 among the less indebted countries based on its public debt-GDP report, with 39.9 per cent, after Estonia (10.1 per cent), Bulgaria (18.3 per cent) and Luxembourg. The last positions in the ranking belonged to Greece (174.9 per cent), followed by Portugal (128 per cent), Italy (127.9 per cent) and Ireland (123.3 per cent).

The Court of Accounts based its study on 2014 on the data available for the second quarter of last year. According to these data, Romania is currently among the less indebtedness EU member states, while the average indebtedness level at the EU level reached up to 87 per cent of the GDP and 92.7 per cent of the GDP, respectively, in the Eurozone, with this trend being expected to maintain until the end of this year.


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