National Bank of Romania: current account deficit, 38.5 percent higher

In January-July 2010 the balance-of-payments current account posted a deficit of EUR 3,797 million, 38.5 percent higher than in the same period of 2009, due largely to the 32.0 percent decrease year on year in current transfers balance, said Romanian National Bank in a press release.rnrnNon-residents’ direct investment in Romania worth EUR 1,909 million (as compared with EUR 2,975 million over January-July 2009) covered 50.3 percent of the current account deficit in the first seven months of 2010. Over January-July 2010, out of the total figure, equity stakes* amounted to EUR 1,329 million and intra-group loans1 to EUR 580 million. rnrnMedium- and long-term external debt at end-July 2010 stood at EUR 70,499 million (80.5 percent of total external debt), 7.3 percent above the level recorded at end-2009.rnrnShort-term external debt at end-July 2010 totalled EUR 17,043 million (19.5 percent of total external debt), up 16.8 percent from end-2009.rnrnMedium- and long-term external debt service ratio(2) ran at 32.3 percent in the first seven months of 2010, as compared with 33.1 percent in 2009. At end-July 2010, goods and services import cover(3) stood at 8.6 months, the same figure recorded at year-end 2009. rnrnNotes:rn1.Loans between parent company and its resident branch.rn2.External debt service ratio is computed as a ratio of medium- and long-term external debt service to exports of goods and services. rn3.Import cover is computed as a ratio of the NBR’s official reserves (foreign exchange + gold) at end of period to average monthly imports of goods and services for the period under review.