(The Romania Insider)
Romania’s Government debt increased by over RON 5 billion (EUR 1 bln) in January, to RON 503.6 bln (EUR 103.4 bln) at the end of the month.
The debt to GDP ratio edged up by another 0.5pp to 47.8% at the end of January, as reported by the Finance Ministry based on ESA methodology, namely for the 4-quarter rolling GDP.
The debt, in absolute terms and as a ratio to GDP, increased in January at half the average pace in 2020 – when the debt to GDP soared by 12pp to 47.3% as the Government added nearly RON 125 bln (EUR 25.6 bln) on the top of the public debt.
Under the fiscal-budgetary responsibility law (69/2010), the Government should take steps to reverse the fiscal slippage once the debt to GDP ratio exceeds 50%.
