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NATIONAL BANK OF ROMANIA
Romania’s Balance of Payments
and International Investment Position
ANNUAL REPORT
2013
Note
The drafting of Annual Report 2013 – Romania’s Balance of Payments and International
Investment Position was completed by the Statistics Department based on data available
at end-November 2014.
Some of the data are provisional and will be updated as appropriate in subsequent
NBR publications.
Sources of data are mentioned when institutions other than the National Bank of Romania
supplied data.
All rights reserved.
Reproduction for educational and non-commercial purposes is permitted provided
that the source is acknowledged.
National Bank of Romania
25 Lipscani St., 030031, Bucharest – Romania
Phone: 40 21/312 43 75; Fax: 40 21/314 97 52
www.bnr.ro
ISSN 1453‑3952 (print)
ISSN 1584‑0964 (online)
Methodological notes
The Annual Report 2013 – Romania’s Balance of Payments and International
Investment Position was prepared in line with the new international
methodological standard on balance of payments and international investment
position compilation, as shown in the IMF’s Balance of Payments and
International Investment Position Manual, 6th edition (BPM6), which replaced
the former BPM5 compilation methodology.
Details on the main methodological changes are presented in the Statistics section
on the NBR website, i.e. in the document entitled “Implementing the new
methodological standards in the NBR’s statistics” (Romanian only).
In order to ensure the comparability of data, monthly and quarterly historical data
series as of 2005 have been transposed into the BPM6 compilation methodology
and are available in the Interactive database under the Statistics section on the
NBR website.
Detailed methodological notes on the definitions, legislation and data sources are
available on the NBR website in the Statistics section, Data sets, External Sector
Indicators or by accessing the following link: Balance of payments –
Methodology.
Contents
MAIN DEVELOPMENTS IN 2013
I. External environment................................................................................................ 7
II. Romania’s balance of payments and international investment position
in 2013...................................................................................................................... 11
A. Balance of payments........................................................................................... 11
1. Current account............................................................................................... 11
1.1. Balance on goods and services............................................................... 13
1.1.1. Balance on trade in goods............................................................. 13
1.1.1.1. Structure and geographical breakdown of exports.......... 15
1.1.1.2. Structure and geographical breakdown
of imports (FOB)............................................................. 18
1.1.1.3. Energy trade balance....................................................... 20
1.1.2. Balance on trade in services......................................................... 20
1.2. Balance on primary income.................................................................... 21
1.3. Balance on secondary income................................................................. 22
2. Capital account................................................................................................ 23
3. Financial account............................................................................................ 24
3.1. Direct investment.................................................................................... 24
3.2. Portfolio investment................................................................................ 25
3.3. Other investment..................................................................................... 26
B. Romania’s international investment position...................................................... 28
1. Overview......................................................................................................... 28
2. International investment position.................................................................... 31
2.1. Foreign assets.......................................................................................... 31
2.2. Foreign liabilities.................................................................................... 33
2.2.1. External debt................................................................................. 36
Statistical Section......................................................................................................... 45
Romania’s
Balance of Payments
and International
Investment Position
2013
I. External environment1
During 2013, the international economic environment was characterised by
fluctuations and mixed developments across countries. The beginning of the year
saw the continuation of world economy recovery that had started in the final quarter
of 2012 and that was observed chiefly in the advanced economies. In the summer of
2013, financing conditions on world markets became tighter, global demand subsided
and came to affect the emerging economies in particular. Subsequently, a gradual
recovery was manifest, especially in the advanced economies, but their prospects
were further restrained by the process of balance sheet repair, fiscal consolidation,
relatively tight credit conditions and weak labour markets. Across the large emerging
economies, growth continued to be slowed down by structural causes, although it
remained faster than in the advanced economies, making a significant contribution to
global growth. These adverse conditions were fuelled by social unrest and geopolitical
tensions in a number of Middle Eastern and North African countries, taking the rate
of increase of global production to 3 percent, from 3.2 percent in 2012. Therefore,
global trade in goods and services was characterised by moderate and volatile growth,
edging however 3 percent higher, compared with 2.8 percent in the previous year.
Average annual inflation rate2 remained on a downward path, touching 1.6 percent,
from 2.2 percent in 2012, given the underutilisation of production capacities, high
unemployment and subdued economic activity worldwide. Brent oil price remained
high, on average, at a level comparable to that recorded in the past two years (more
than USD 110 per barrel), but stable, amid the modest growth of world economy,
the rise in oil production in the United States of America and lingering geopolitical
tensions in the Middle East and North Africa. Commodity prices3 went down
4.9 percent during 2013 (grain prices in particular), after having risen by 2.6 percent
in the previous year.
Euro area economy4 shrank by 0.4 percent in 2013, compared with -1.5 percent
in 2012. The contraction was driven by investment and private consumption, the
performance of which was affected by tight credit conditions, still low capacity
utilisation and a reduction in employment rate. Nevertheless, the decline in
investment was less pronounced, reaching -2.9 percent in 2013 from -4 percent a
year earlier, thanks to favourable developments seen also in the construction sector.
Similar developments saw private consumption, which fell 0.7 percent in 2013,
against -1.3 percent in 2012, reflecting less tight financing conditions and lower
commodity prices. Following the continued efforts to achieve fiscal consolidation by
most euro area members, government consumption moved ahead merely 0.1 percent,
after having contracted by 0.6 percent in the prior year.
1
Source: ECB, Annual Report 2013, Monthly Bulletin, October 2014; IMF, World Economic Outlook,
October 2014.
2
For the countries that are members of the Organisation for Economic Co-operation and Development
(OECD).
3
Expressed in EUR and based on the GDP-by-expenditure weighting system (energy excluded).
4
The countries referred to herein are the 17 EU Member States making up the monetary union at
end-2013: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, Malta, the Netherlands, Portugal, Spain, Slovakia and Slovenia.
National Bank of Romania
7
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Net exports of goods and services were the only component that had a positive
contribution to euro area economic growth, even though export dynamics slowed as
compared with the previous year. In 2013, euro area exports of goods and services
expanded by 1.4 percent and imports thereof by 0.4 percent, after having risen by
2.5 percent and fallen by 0.9 percent respectively in 2012.
From a sectoral perspective, negative real GDP growth in the euro area stemmed from
the developments in construction, industry and services. Gross value added in the
construction sector slipped 4 percent year on year, while services and manufacturing
reported negative growth rates of 0.5 percent and 0.6 percent respectively.
Against the backdrop of weakening inflationary pressure induced by international
food and energy prices, the average annual inflation rate measured by the Harmonised
Index of Consumer Prices (HICP) decreased to 1.4 percent in 2013 from 2.5 percent
in the year before.
The labour market in the euro area remained on the downward drift that had become
manifest in 2011 H2, with the employment rate shedding 0.8 percentage points and
the unemployment rate5 climbing to 11.9 percent (versus 11.3 percent in 2012).
The general government deficit for the euro area narrowed to 2.9 percent of GDP6,
against 3.6 percent of GDP in 2012, amid larger revenues (after taking steps to
broaden the taxation base and lift some taxes) and slightly lower expenditures.
The general government deficit improved from 2012 in ten out of the 17 euro area
members and seven countries exceeded the 3.0 percent-of-GDP reference value.
The lowest deficit-to-GDP ratios were displayed by Estonia and Austria (0.5 percent
and 1.5 percent respectively), whereas Luxembourg and Germany reported budget
surpluses (0.6 percent of GDP and 0.1 percent of GDP respectively). The euro area
public debt ratio added 1.9 percentage points from the previous year to 90.9 percent
of GDP. The debt ratio overstepped the 60 percent-of-GDP reference value in
12 countries and remained above 100 percent in Greece, Italy, Ireland and Portugal.
In 2013, Cyprus also joined the aforementioned four countries, as the country’s
public debt as a share of GDP went beyond the 100 percent mark from less than
80 percent in the prior year.
The aggregate current account of the euro area7 ended 2013 on a surplus of
EUR 205.3 billion, compared with EUR 138.4 billion a year earlier, as a result of
wider trade surplus (goods and services).
Non-euro area EU Member States8 reported economic growth of 1.5 percent in
2013, against 0.4 percent in 2012. The performance was supported by domestic
demand, general government consumption in particular, yet contained by poor
external demand, especially from the euro area. In 8 out of the 11 non-euro area
5
According to ILO (International Labour Office) methodology.
Eurostat, Newsrelease Euroindicators 158/2014: Provision of deficit and debt data for 2013 –
second notification, 21 October 2014.
7
BPM6 methodology (see the Methodological Notes).
8
The countries referred to herein are the 11 non-euro area Member States at end-2013: Bulgaria,
the Czech Republic, Croatia, Denmark, Latvia, Lithuania, Hungary, Poland, Romania, Sweden and
the United Kingdom.
6
8
National Bank of Romania
Main developments in 2013
Romania’s
Balance of Payments
and International
Investment Position
2013
EU Member States, the GDP growth was in positive territory9, with the best
performers being Latvia, Romania and Lithuania, which posted rates of increase
ranging from 3.3 percent to 4.2 percent.
In 2013, average annual inflation rate fell in the non-euro area countries to 1.9 percent,
from 3 percent in 2012, due largely to decreases in commodity prices and indirect
taxes. Inflation rates above 2 percent were recorded in Romania (3.2 percent), the
United Kingdom (2.6 percent) and Croatia (2.3 percent).
The fiscal position improved in 8 of the 11 non-euro area EU Member States,
mostly on account of further fiscal consolidation efforts. Overall, the deficit-to-GDP
ratio equalled 4.2 percent, against 5.9 percent a year earlier. The 3 percent of GDP
reference value was exceeded in 3 of the 11 countries (the United Kingdom, Croatia
and Poland), while other three countries were successful in correcting their excessive
deficits (the Czech Republic, Denmark and Lithuania). Government debt accounted
for 70.1 percent of GDP in the year under review, compared with 68.4 percent
of GDP in 2012, and exceeded the 60 percent of GDP reference value in the
United Kingdom, Croatia and Hungary, rising in the first two countries and declining
in the last.
The current account balance improved in the non-euro area EU Member States
on the whole to reach -1.1 percent of GDP in 2013 against -1.6 percent of GDP
in 2012, this trend being observed in all countries except the United Kingdom.
Direct investment saw a net acquisition of assets in the 11 non-euro EU Member
States during 2013, compared to a net disposal in the previous year, driven by
4 countries (the United Kingdom, Sweden, Denmark and the Czech Republic),
along with a net incurrence of liabilities smaller than that of 2012 (chiefly in the
United Kingdom, Poland, Hungary and Denmark). Portfolio investment posted a
net acquisition of assets that was lower than a year earlier (mainly owing to the
United Kingdom and Denmark), together with a significant net incurrence of
liabilities that was prompted by the same countries (after posting a net decline in
2012). Other investment (largely loans and deposits) reported a lower net disposal of
assets (manifest in the United Kingdom, Sweden and Denmark), as well as a larger
net decrease in liabilities (in the United Kingdom, Denmark and Romania).
In the United States of America, gross domestic product grew 2.2 percent in 2013,
compared with 2.3 percent in 2012. The first-half slowdown, ascribed to further
contraction in government consumption, subdued private non-residential investment
and weak exports, was followed by a rebound in growth, reflecting continued
improvements in the labour market and the positive wealth effect from rising stock
and house prices. Average annual CPI inflation dropped to 1.5 percent in 2013 from
2.1 percent in the previous year, owing to lower energy prices and considerable spare
capacity. Unemployment rate decreased to 7.4 percent in 2013 from 8.1 percent
in 2012. The federal budget deficit narrowed by 3.3 percentage points to 5.7 percent
of GDP, but the federal public debt increased to stand at 87.8 percent of GDP at the
end of 2013, compared with 86.5 percent at the end of 2012. The current account
deficit stayed flat against 2012 at 0.1 percent of GDP.
9
An economic decline was reported by Croatia, the Czech Republic and Denmark.
National Bank of Romania
9
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Japan’s economy advanced by 1.5 percent in 2013, similarly to the year before, as
a result of implementing accommodative monetary and fiscal policies meant to root
out persistent deflation and boost the economy. The average annual inflation rate, as
measured by the consumer price index, went into positive territory in June, reaching
1.6 percent in December, the highest reading on record since 2008. Overall, the
average annual inflation rate came in at 0.4 percent in 2013 from 0 percent in 2012.
Unemployment rate moved down to 4.0 percent from 4.3 percent in the prior year.
Emerging economies in Asia continued to grow at nearly the same pace as in the
previous year (6.6 percent in 2013 against 6.7 percent a year earlier), amid stronger
domestic demand, which offset the smaller contribution of net exports of goods and
services. Inflationary pressures were contained by stable commodity prices on global
markets, with the annual inflation rate reaching 4.7 percent, from 4.4 percent in
the previous year. In China, real GDP growth remained unchanged at 7.7 percent
in 2013, amid the positive contribution of investment and consumption, whereas
net exports of goods and services made a slightly negative contribution. Average
annual consumer price inflation was unchanged from 2012 at 2.6 percent, the local
currency continued to appreciate, and the country’s foreign exchange reserves grew
to 41 percent of GDP.
For Latin America and the Caribbean region, year-on-year real GDP growth
stood at 2.7 percent in 2013, compared with 2.9 percent in the prior year, amid an
adverse external environment and efforts made to reduce vulnerabilities by cutting
public debt and strengthening foreign exchange reserves. The current account deficit
for the region as a whole widened to 2.7 percent in 2013 from 1.8 percent in 2012.
Urban unemployment rate moved down to 6.6 percent from 6.8 percent in the prior
year. Annual inflation rate edged up to 7.1 percent in 2013 from 5.9 percent in 2012,
amid the slowing economic growth.
10
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
II. Romania’s balance of payments and international
investment position in 2013
A. Balance of payments
In 2013, Romania’s balance-of-payments current account deficit amounted to EUR
1,168 million. Deficit financing was ensured by an increase in net liabilities in the
form of direct and portfolio investment. Approximately three fourths of the current
account deficit stemming from trade with the European Union (EU) were offset by
the surplus from trade with extra-EU countries. The current account deficit arising
from trade with the euro area accounted for two thirds of the current account deficit
from trade with EU Member States.
Table 1. Balance of payments in relation to the EU and the euro area
EUR millions
Total
Current account
Goods
Services
Primary income
Secondary income
Capital account
Financial account
of which:
Direct investment
Assets
Liabilities
Portfolio investment
Assets
Liabilities
Financial derivatives
Other investment
Assets
Liabilities
-1,168
-5,443
4,700
-3,112
2,687
3,038
1,675
EU
-4,522
-7,584
3,842
-2,727
1,948
2,193
-6,050
-2,924
-27
2,897
-5,432
225
5,656
-35
7,921
127
-7,795
-2,897
269
3,166
-4,406
100
4,506
-26
2,755
-750
-3,505
of which:
Extra-EU
EA
3,353
-2,988
2,141
-4,633
858
3,361
-385
-3,386
739
1,670
845
-37
7,725
-4,805
-27
-296
-269
-1,026
125
1,150
-9
5,166
877
-4,290
-2,790
161
2,951
-3,898
13
3,911
-16
2,936
-701
-3,637
Extra-EA
1,820
-810
1,339
274
1,017
3,075
6,480
-134
-188
-54
-1,534
212
1,745
-19
4,985
828
-4,158
Note: Extra-EA - EU countries outside the euro area.
1. Current account
In 2013, Romania’s balance of payments posted a EUR 1,168 million current
account deficit, down 80.7 percent from 2012. The share of the current account
deficit in GDP10 stood at 0.8 percent compared with 4.5 percent in the previous year,
10
Calculated based on ESA 2010 methodology (source: NIS).
National Bank of Romania
11
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
with the 3.7 percentage point decline being attributable to the smaller deficit on
trade in goods and to the larger service surplus, mainly in the private sector.
Table 2. Contributions to the narrowing of the current account deficit
share in GDP
Current
account
Goods
Services
Primary
income
Secondary
income
2013
-0.8
-3.8
3.3
-2.2
1.9
2012
-4.5
-6.7
1.9
-1.7
2.0
Difference (p.p.)
3.7
2.9
1.4
-0.5
-0.1
The developments in the current account and its components in absolute terms
(Table 3) show the narrowing deficit on trade in goods, originating in a steeper
increase in exports than in imports, concurrently with the consolidation of the
surplus reported by the balance on trade in services over the last three years, due
especially to manufacturing services on physical inputs owned by others and to the
freight transport. The primary income deficit deepened further, reflecting a decrease
in the net loss incurred by foreign direct investors and, to a smaller extent, a hike
in interest payments on debt portfolio investment. Secondary income saw a slightly
lower surplus than in 2012, amid the fall in workers’ remittances from abroad, in the
context of the increase in the funds taken from the European Union.
Table 3. Current account
EUR millions
Current account
Credit
Debit
Goods
Credit
Debit
Services
Credit
Debit
Primary income
Credit
Debit
Secondary income
Credit
Debit
12
2012
-6,052
56,961
63,013
-8,931
39,901
48,832
2,473
9,873
7,400
-2,304
2,372
4,676
2,710
4,815
2,105
2013
-1,168
65,158
66,326
-5,443
43,879
49,322
4,700
13,427
8,727
-3,112
2,505
5,617
2,687
5,347
2,660
Indices (%)
2013/2012
19.3
114.4
105.3
60.9
110.0
101.0
190.1
136.0
117.9
135.1
105.6
120.1
99.2
111.0
126.4
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Chart 1. Composition of the current account balance
5
EUR billions
3
0
‑3
goods
‑5
services
primary income
‑8
‑10
secondary income
2012
2013
1.1. Balance on goods and services
In 2013, the balance on goods and services posted a deficit of EUR 743 million,
accounting for 11.5 percent of the reading posted in the previous year, thanks to a
significant contraction in the deficit on trade in goods and to the twofold increase in
the surplus on trade in services.
1.1.1. Balance on trade in goods11
In 2013, the deficit reported by the balance of goods came in at EUR 5,443 million,
down 39.1 percent from a year earlier, with exports expanding by 10 percent and
imports adding merely 1 percent. The trade deficit-to-GDP ratio went down by
2.9 percentage points to 3.8 percent.
11
According to the BPM6 methodology, the balance on trade in goods does not include goods sent
for processing for which there is no ownership transfer and thereby differs from the international
trade in goods compiled and published by the National Institute of Statistics in line with the specific
methodology elaborated by Eurostat (see Methodological Notes).
National Bank of Romania
13
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 4. Balance on trade in goods
2012
2013
Differences (+/-)
EUR millions
Exports (FOB)
of which:
General merchandise
Net exports of goods under
merchanting
Imports (FOB)
Balance on trade in goods (FOB/FOB)
GDP
Current account balance
39,901
43,879
3,978
39,889
43,826
3,937
12
53
41
48,832
-8,931
133,905
-6,052
49,322
-5,443
144,664
-1,168
490
3,488
percent
4,884
percentage points
Share of exports in GDP
Share of imports in GDP
29.8
36.5
30.3
34.1
0.5
-2.4
Share of balance on trade in goods
in GDP
-6.7
-3.8
2.9
Coverage of imports through exports
(FOB/FOB)
81.7
89.0
7.3
Economy openness (exports+imports)/
GDP
66.3
64.4
-1.9
Source: National Institute of Statistics, NBR calculations
The highest monthly trade deficit in 2013 equalled EUR 688 million and was
recorded in July and the lowest was of EUR 195 million in February.
The trade balance – by the eight groups of goods in the Combined Nomenclature
– ended on a deficit under chemical and plastic products (EUR 4,354 million),
mineral products (EUR 2,831 million) and base metals (EUR 757 million), but
posted surpluses under wood and paper products (EUR 945 million), machinery,
apparatus, equipment and transport means (EUR 846 million), agrifoodstuffs
(EUR 528 million), textiles, wearing apparel and footwear (EUR 227 million), and
other goods (EUR 355 million).
By geographical breakdown, intra-EU trade was the only source of the trade deficit,
with extra-EU trade recording a EUR 2,141 million surplus.
The coverage of imports through exports rose by 7.3 percentage points to 89 percent,
whereas the openness of the Romanian economy decreased by 1.9 percentage points
to 64.4 percent.
Exports of goods amounted to EUR 43,879 million12, up 10 percent from 2012, due
to the advance in the external demand, especially from non-euro area countries.
In terms of value, exports saw a EUR 3,978 million increase.
12
14
The share of exports of goods in GDP went up to 30.3 percent in 2013 from 29.8 percent in 2012.
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
In 2013, exports reported a monthly low in January (EUR 3,268 million), while a
peak was seen in November (EUR 4,145 million). The monthly average of exports
equalled EUR 3,657 million, up EUR 332 million from a year earlier.
Imports of goods (FOB) reached EUR 49,322 million13 in 2013, up 1 percent
(or EUR 490 million) from the previous year. In 2013, imports saw a monthly low
of EUR 3,544 million in January and a high of EUR 4,783 million in October.
The monthly average of imports stood at EUR 4,110 million, EUR 41 million above
the year-earlier figure.
Chart 2. Monthly developments in exports and imports of goods
25
% versus the same year‑earlier month
20
exports
15
imports
10
5
0
‑5
Dec.13
Oct.13
Nov.13
Sep.13
Aug.13
Jul.13
Jun.13
May.13
Apr.13
Mar.13
Jan.13
Feb.13
Dec.12
Oct.12
Nov.12
Sep.12
Aug.12
Jul.12
Jun.12
May.12
Apr.12
Mar.12
Jan.12
‑15
Feb.12
‑10
1.1.1.1. Structure and geographical breakdown of exports
a) Structure of exports
In 2013, four groups of goods made larger contributions to Romania’s exports
compared with 2012: agrifoodstuffs (by 1.9 percentage points), machinery,
apparatus, equipment and transport means (by 1.1 percentage points), wood and
paper products (by 0.3 percentage points) and other goods (0.1 percentage points).
The remaining four groups had smaller contributions to exports than in the previous
year, as follows: base metals (by 2 percentage points), chemical and plastic products
(by 0.9 percentage points), mineral products (by 0.3 percentage points), and textiles,
wearing apparel and footwear (by 0.2 percentage points).
13
The share of imports of goods in GDP fell to 34.1 percent in 2013 from 36.5 percent in 2012.
National Bank of Romania
15
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 5. Exports by group of goods in the Combined Nomenclature
Goods
General merchandise
Agrifoodstuffs
Mineral products
Chemical and plastic products
Wood and paper products
EUR millions
2012
2013
39,901
43,879
39,889
43,826
4,016
5,249
2,610
2,705
4,869
4,936
1,878
2,194
Indices (%)
2013/2012
110.0
109.9
130.7
103.6
101.4
116.8
Composition (%)
2012
2013
100.0
100.0
100.0
99.9
10.1
12.0
6.5
6.2
12.2
11.3
4.7
5.0
Textiles, wearing apparel
and footwear
2,310
2,468
106.8
5.8
5.6
Base metals
4,916
4,519
91.9
12.3
10.3
16,375
18,485
112.9
41.1
42.2
2,915
3,270
112.2
7.3
7.4
12
53
441.7
0.0
0.1
Machinery, apparatus,
equipment and transport means
Other
Net exports of goods under
merchanting*
) Goods purchased by residents from non-residents and subsequently sold to other non-residents,
without being moved on the country’s territory.
*
Source: National Institute of Statistics, NBR calculations
b) Geographical breakdown of exports
In 2013, intra-EU exports totalled EUR 29,632 million, up 8.9 percent from 2012.
The share of intra-EU exports in total exports was 67.5 percent, down 0.7 percentage
points from a year earlier. The lower share is attributable especially to the slower
growth of exports to Germany, Italy, France, Hungary and Bulgaria.
Table 6. Exports of goods by group of countries
Total
1. Intra-EU exports, of which:
1.1. Euro area, of which:
Germany
Italy
France
1.2. Extra-euro area, of which:
Hungary
Bulgaria
United Kingdom
Poland
2. Extra-EU exports
Turkey
Russian Federation
Ukraine
USA
EUR millions
2012
2013
39,901
43,879
27,206
29,632
19,428
21,140
7,170
7,827
3,530
3,788
2,850
3,065
7,778
8,492
2,216
2,257
1,710
1,671
1,297
1,657
1,067
1,158
12,695
14,247
2,459
2,545
1,050
1,370
776
923
833
797
Indices (%) Composition (%)
2013/2012
2012
2013
110.0
100.0 100.0
108.9
68.2
67.5
108.8
48.7
48.2
109.2
18.0
17.8
107.3
8.8
8.6
107.5
7.1
7.0
109.2
19.5
19.3
101.9
5.6
5.1
97.7
4.3
3.8
127.8
3.3
3.8
108.5
2.7
2.6
112.2
31.8
32.5
103.5
6.2
5.8
130.5
2.6
3.1
118.9
1.9
2.1
95.7
2.1
1.8
Source: National Institute of Statistics, NBR calculations
16
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Exports to the European Union went up for all groups of goods, except for base
metals, which shrank by 3.9 percent.
The following groups of goods posted larger contributions to intra-EU exports in
2013: machinery, apparatus, equipment and transport means (0.9 percentage points),
mineral products and wood and paper products (by 0.3 percentage points each), and
agrifoodstuffs (0.2 percentage points).
Table 7. Exports of goods to the European Union by group of goods
in the Combined Nomenclature
EUR millions
Indices (%)
Composition (%)
2012
2013
2013/2012
2012
2013
27,087
29,515
109.0
100.0
100.0
27,086
29,495
108.9
100.0
99.9
2,787
3,092
110.9
10.3
10.5
630
774
122.9
2.3
2.6
3,214
3,446
107.2
11.9
11.7
Wood and paper products
864
1,031
119.3
3.2
3.5
Textiles, wearing apparel
and footwear
2,073
2,203
106.3
7.7
7.5
Base metals
2,892
2,779
96.1
10.7
9.4
12,236
13,603
111.2
45.2
46.1
2,390
2,567
107.4
8.8
8.7
1
20
x
0.0
0.1
Goods
General merchandise
Agrifoodstuffs
Mineral products
Chemical and plastic products
Machinery, apparatus,
equipment and transport means
Other
Net exports of goods under
merchanting*
) Goods purchased by residents from non-residents and subsequently sold to other non-residents,
without being moved on the country’s territory.
*
Source: National Institute of Statistics, NBR calculations
Extra-EU exports amounted to EUR 14,247 million, up 12.2 percent from 2012,
accounting for 32.5 percent of total exports14.
The first ten export destinations15 in 2013 were: Germany (17.8 percent of total
exports), Italy (8.6 percent), France (7.0 percent), Turkey (5.6 percent), Hungary
(5.1 percent), Bulgaria (3.8 percent), the United Kingdom (3.8 percent), the Russian
Federation (3.1 percent), the Netherlands (2.8 percent) and Poland (2.6 percent).
14
15
Up 0.7 percentage points from 2012.
Accounting for 60.4 percent of total exports in 2013.
National Bank of Romania
17
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
1.1.1.2. Structure and geographical breakdown of imports (FOB)
a) Structure of imports
Imports of goods were upheld in a proportion of more than 75 percent by four groups
of goods: machinery, apparatus, equipment and transport means, chemical and plastic
products, mineral products and base metals.
The shares of the following two groups of goods in total imports declined compared
with 2012: mineral products and base metals, by 2.6 percentage points and
0.2 percentage points respectively.
Table 8. Imports of goods (FOB) by group of goods in the Combined Nomenclature
EUR millions
2012
2013
Total
Indices (%)
2013/2012
Composition (%)
2012
2013
48,832
49,322
101.0
100.0
100.0
Agrifoodstuffs
4,527
4,721
104.3
9.3
9.6
Mineral products
6,741
5,536
82.1
13.8
11.2
Chemical and plastic products
9,005
9,290
103.2
18.5
18.8
Wood and paper products
1,193
1,249
104.7
2.4
2.5
Textiles, wearing apparel
and footwear
2,511
2,695
107.3
5.1
5.5
Base metals
5,308
5,276
99.4
10.9
10.7
16,757
17,639
105.3
34.3
35.8
2,790
2,916
104.5
5.7
5.9
Machinery, apparatus,
equipment and transport means
Other
Source: National Institute of Statistics, NBR calculations
b) Geographical breakdown of imports
Intra-EU imports amounted to EUR 37,216 million in 2013, up 4 percent year
on year. The share of intra-EU imports in total imports rose by 2.2 percentage
points versus 2012 to reach 75.5 percent, with Germany, France, Poland and the
Czech Republic making the largest contributions thereto.
18
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 9. Imports of goods (FOB) by group of countries
Total
1. Intra-EU imports
of which:
1.1. Euro area
of which:
Germany
Italy
France
1.2. Extra-euro area
of which:
Hungary
Poland
Bulgaria
Czech Republic
United Kingdom
2. Extra-EU imports
of which:
Russian Federation
Kazakhstan
China
Turkey
Ukraine
USA
EUR millions
2012
2013
48,832
49,322
35,786
37,216
Indices (%)
2013/2012
101.0
104.0
Composition (%)
2012
2013
100.0
100.0
73.3
75.5
24,471
25,772
105.3
50.1
52.3
8,470
4,416
2,740
11,315
9,042
4,499
2,889
11,444
106.8
101.9
105.4
101.1
17.3
9.0
5.6
23.2
18.3
9.1
5.9
23.2
4,618
2,261
1,458
1,245
1,060
13,046
4,215
2,372
1,442
1,426
1,005
12,106
91.3
104.9
98.9
114.5
94.8
92.8
9.5
4.6
3.0
2.5
2.2
26.7
8.5
4.8
2.9
2.9
2.0
24.5
2,224
2,085
1,959
1,704
389
731
2,190
1,679
1,835
1,733
343
556
98.5
80.5
93.7
101.7
88.2
76.1
4.6
4.3
4.0
3.5
0.8
1.5
4.4
3.4
3.7
3.5
0.7
1.1
Source: National Institute of Statistics, NBR calculations
Imports from the European Union posted increases in the shares of four groups of
goods, as set out in Table 10:
Table 10. Imports of goods (FOB) from the European Union
by group of goods in the Combined Nomenclature
Total
Agrifoodstuffs
Mineral products
Chemical and plastic products
Wood and paper products
EUR millions
2012
2013
35,786
37,216
3,690
3,877
1,606
1,258
7,357
7,623
961
999
Indices (%)
2013/2012
104.0
105.1
78.3
103.6
104.0
Composition (%)
2012
2013
100.0
100.0
10.3
10.4
4.5
3.4
20.6
20.5
2.7
2.7
Textiles, wearing apparel
and footwear
1,929
2,073
107.5
5.4
5.6
Base metals
4,028
4,116
102.2
11.3
11.1
13,893
14,804
106.6
38.8
39.8
2,322
2,466
106.2
6.5
6.6
Machinery, apparatus,
equipment and transport means
Other
Source: National Institute of Statistics, NBR calculations
National Bank of Romania
19
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Extra-EU imports equalled EUR 12,106 million (down 7.2 percent versus 2012),
accounting for 24.5 percent of total imports16.
In 2013, Romania’s imports came mainly from the following ten countries: Germany
(18.3 percent of total imports), Italy (9.1 percent), Hungary (8.6 percent), France
(5.9 percent), Poland (4.8 percent), the Russian Federation (4.4 percent), Austria
(4.1 percent), the Netherlands (3.8 percent), China (3.7 percent) and Turkey
(3.5 percent). Imports from these countries accounted for 66.2 percent of total
imports.
1.1.1.3. Energy trade balance17
In 2013, the energy trade balance ended on a deficit of EUR 2,559 million18, down
by a third year on year, while the coverage of imports of energy resources through
exports thereof expanded by 10.6 percentage points to 50.1 percent. Crude oil,
reporting net imports worth EUR 2,920 million, made further the largest contribution
to the energy trade deficit.
Energy exports totalled EUR 2,573 million19, up 3 percent (EUR 74 million)
from 2012. Energy imports amounted to EUR 5,131 million20, down 18.9 percent
(EUR 1,196 million) versus 2012.
Tabel 11. Energy exports and imports (FOB)
EUR millions
Exports
Total
Natural gas
Electricity
Mineral fuels
Crude oil
Petroleum products
2012
2,499
0
67
456
30
1,947
2013
2,573
0
104
434
31
2,004
Imports
2012
6,327
954
65
777
3,053
1,478
2013
5,131
419
16
564
2,951
1,182
Net imports (-)/
Net exports (+)
2012
-3,828
-954
2
-321
-3,023
469
2013
-2,559
-419
88
-130
-2,920
823
Source: National Institute of Statistics, NBR calculations
1.1.2. Balance on trade in services
The balance on trade in services posted a EUR 4,700 million surplus in 2013,
compared with EUR 2,473 million in 2012, on account of the increase in receipts
from the processing of goods owned by others, transport, travel, telecommunications,
computer, and information services, other business services. All components of
the balance on trade in services except for travel witnessed a favourable evolution
16
Down 2.2 percentage points from 2012.
Goods sent for processing excluded, according to the BPM6 methodology.
18
Increasing as a share of the deficit on trade in goods to 47 percent in 2013 from 42.9 percent in
2012.
19
Decreasing as a share of total exports of goods to 5.9 percent in 2013 from 6.3 percent in 2012.
20
Decreasing as a share of total imports of goods to 10.4 percent in 2013 from 13 percent in 2012.
17
20
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
compared with 2012, with processing of goods, transport and other services recording
higher surpluses.
Table 12. Balance on trade in services
Credit
Processing of goods
Transport
Travel
Other
Debit
Processing of goods
Tansport
Travel
Other
Balance
Processing of goods
Transport
Travel
Other
EUR millions
2012
2013
9,873
13,427
1,483
2,275
2,513
3,880
1,142
1,196
4,735
6,076
7,400
8,727
127
142
1,328
1,386
1,429
1,547
4,516
5,652
2,473
4,700
1,356
2,133
1,185
2,494
-287
-351
219
424
Indices (%)
2013/2012
136.0
153.4
154.4
104.7
128.3
117.9
111.8
104.4
108.3
125.2
190.1
157.3
210.5
122.3
193.6
Composition (%)
2012
2013
100.0
100.0
15.0
16.9
25.4
28.9
11.6
8.9
48.0
45.3
100.0
100.0
1.7
1.6
18.0
15.9
19.3
17.7
61.0
64.8
Receipts from services totalled EUR 13,427 million, up 36 percent from 2012,
with almost half of them coming from various services (telecommunications,
computer, and information services, other business services) and approximately
one fourth from transport (especially from road freight transport). More than
three fourths of the receipts from services came from the following ten countries:
Germany, Italy, France, the United Kingdom, Austria, the United States of America,
the Netherlands, Switzerland, Belgium and Spain. Services-related payments stood
at EUR 8,727 million, up 17.9 percent from 2012, with various services (financial,
construction, legal, consulting, architectural, insurance, licence fees and royalties,
audio-visual services) holding roughly 65 percent. More than 60 percent of
services-related payments were made to the following ten countries: Germany,
Austria, Italy, France, the United Kigdom, the Netherlands, the United States of
America, Switzerland, Hungary and Spain.
1.2. Balance on primary income
The balance on primary income ended the year 2013 on a EUR 3,112 million deficit,
35.1 percent wider versus 2012, in line with the evolution of direct investment
income21 (higher dividend payments and lower net loss) and portfolio investment
(mainly payments on account of interest payable on government bonds).
21
Statistical survey on foreign direct investment in Romania in 2013 (the National Bank of Romania
and the National Institute of Statistics).
National Bank of Romania
21
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 13. Balance on primary income
Credit
Compensation of employees
Investment income
Other primary income
Debit
Compensation of employees
Investment income
Other primary income
Balance
Compensation of employees
Investment income
Other primary income
EUR millions
2012
2013
2,372
2,505
571
553
809
775
992
1,177
4,676
5,617
91
68
4,315
5,424
270
125
-2,304
-3,112
480
485
-3,506
-4,649
722
1,052
Indices (%)
2013/2012
105.6
96.8
95.8
118.6
120.1
74.7
125.7
46.3
135.1
101.0
132.6
145.7
Composition (%)
2012
2013
100.0
100.0
24.1
22.1
34.1
30.9
41.8
47.0
100.0
100.0
1.9
1.2
92.3
96.6
5.8
2.2
Concurrently, the decline in interest payments on loans and the consolidation of
other primary income (mainly subsidies from the European Union), together with
labour income posting the same levels, had a favourable influence on the balance on
primary income by containing its deficit.
1.3. Balance on secondary income
The balance on secondary income ended the year 2013 on a EUR 2,687 million
surplus, 0.8 percent below the previous year’s reading, mainly reflecting the
reduction in net private transfers (lower receipts and larger payments). The balance
on secondary income of the general government ended the year on a EUR 35 million
deficit, accounting for 8 percent of the year-earlier deficit, given that inflows of
EU funds almost doubled and offset the detrimental impact of higher contributions
to the European Union budget. The balance on private secondary income posted a
surplus of EUR 2,722 million, down 13.6 percent from the previous year, driven
by miscellaneous current transfers (donations, inheritances, sponsorships, workers’
remittances from abroad). In particular, workers’ remittances from abroad stood
8.3 percent below the 2012 level, owing to the fragile economic recovery in the main
destination countries for Romanian workers (Spain, France and the UK).
Disbursements from the EU budget to Romania in 2013 were worth
EUR 5,557 million, of which current transfers received by the general government
totalled EUR 1,411 million22, with the European Agricultural Fund for Rural
Development (EAFRD) and the European Social Fund (ESF) holding approximately
equal shares. Payments to the European Union amounted to EUR 1,535 million,
representing almost entirely Romania’s contribution to the EU budget.
22
22
Source: Ministry of Public Finance.
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 14. Secondary income balance
Credit
General government
Other sectors
Debit
General government
Other sectors
Balance
General government
Other sectors
EUR millions
2012
2013
4,815
5,347
835
1,544
3,980
3,803
2,105
2,660
1,274
1,579
831
1,081
2,710
2,687
-439
-35
3,149
2,722
Indices (%)
2013/2012
111.0
184.9
95.6
126.4
123.9
130.1
99.2
8.0
86.4
Composition (%)
2012
2013
100.0
100.0
17.3
28.9
82.7
71.1
100.0
100.0
60.5
59.4
39.5
40.6
2. Capital account
The capital account saw net inflows of EUR 3,038 million, up over 60 percent from
a year earlier, prompted by the doubling of the capital transfers surplus, given
the more than 75 percent rise in funds from the European Union, mainly from the
Regional Development Fund, the Cohesion Fund, and the European Agricultural
Fund for Rural Development.
Table 15. Capital account
Credit
Capital transfers
General government
Other sectors
Acquisitions/disposals
of non-produced
non-financial assets
Debit
Capital transfers
General government
Other sectors
Acquisitions/disposals
of non-produced
non-financial assets
Balance
Capital transfers
General government
Other sectors
Acquisitions/disposals
of non-produced
non-financial assets
National Bank of Romania
EUR millions
2012
2013
2,238
3,163
1,787
3,021
1,685
3,018
102
3
Indices (%)
2013/2012
141.3
169.1
179.1
2.9
Composition (%)
2012
2013
100.0
100.0
79.8
95.5
75.3
95.4
4.6
0.1
451
142
31.5
20.2
4.5
357
191
126
65
125
115
11
104
35.0
60.2
8.7
160.0
100.0
53.5
35.3
18.2
100.0
92.0
8.8
83.2
166
10
6.0
46.5
8.0
1,881
1,596
1,559
37
3,038
2,906
3,007
-101
161.5
182.1
192.9
x
285
132
46.3
23
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
3. Financial account
In 2013, the financial account witnessed net outflows worth EUR 1,675 million,
compared with net inflows of EUR 3,106 million in the previous year, particularly
due to other investment, which reflected primarily the scheduled repayments under
the Stand-By Arrangement concluded with the IMF in 2009 and reductions in
non-residents’ deposits with resident deposit-taking corporations, adding to
residents’ repayments of trade credit. These developments were also ascribable to
the increase in the NBR’s reserve assets. Outflows were partly offset by inflows of
direct investment and portfolio investment during 2013, the latter consisting in the
bond issues launched by the Ministry of Public Finance on international markets.
Table 16. Financial account
EUR millions
Financial account
Net acquisition of assets*
Net incurrence of liabilities*
Direct investment
Net acquisition of assets*
Net incurrence of liabilities*
Portfolio investment
Net acquisition of assets*
Net incurrence of liabilities*
Financial derivatives
Net acquisition of assets*
Net incurrence of liabilities*
Other investment
Net acquisition of assets*
Net incurrence of liabilities*
Reserve assets
Net acquisition of assets*
Net incurrence of liabilities*
2012
-3,106
-1,508
1,598
-2,379
-183
2,196
-3,546
468
4,014
177
-300
-477
4,094
-41
-4,135
-1,452
-1,452
0
2013
1,675
2,036
361
-2,924
-27
2,897
-5,431
225
5,656
-35
-432
-397
7,922
127
-7,795
2,143
2,143
0
*
) “+” increase, “-” decrease
3.1. Direct investment
In 2013, direct investment recorded net inflows in amount of EUR 2,924 million,
up 22.9 percent from 2012 (EUR 2,379 million), amid the increase in equity
(EUR 2,768 million versus EUR 2,676 million in 2012) and the reduction in losses
incurred by direct investment enterprises in the real economy (EUR 344 million
against EUR 1,266 million) – both reflected in a net incurrence of liabilities.
Behind the larger net inflows also stood the higher repayments by direct investment
enterprises from abroad of loans taken from resident investors, from EUR 96 million
to EUR 156 million (net disposal of assets). Net inflows were partly offset by net
outflows stemming primarily from resident companies’ equity in direct investment
enterprises abroad (EUR 127 million).
24
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Investment by non-residents in Romania23 totalled EUR 2,712 million, of which
EUR 2,427 million were equity (consolidated with the net loss) and EUR 285 million
intercompany lending.
Table 17. Direct investment
EUR millions
2012
2013
Net
Net
acquisition incurrence Net
of assets* of liabilities*
Total
Equity
Equity, except for
reinvested earnings
Deposit-taking
corporations,
except the central
bank
Other sectors
Reinvested earnings
Deposit-taking
corporations,
except the central
bank
Other sectors
Debt instruments
Deposit-taking
corporations, except
the central bank
Other sectors
Net
Net
acquisition incurrence Net
of assets* of liabilities*
-183
-87
2,196
795
-2,379
-882
-27
129
2,897
2,431
-2,924
-2,302
-64
2,676
-2,740
127
2,768
-2,641
0
276
-276
0
207
-207
-64
-23
2,400
-1,881
-2,464
1,858
127
2
2,561
-337
-2,434
339
4
-615
619
3
7
-4
-27
-96
-1,266
1,401
1,239
-1,497
-1
-156
-344
466
343
-622
0
0
0
2
0
2
-96
1,401
-1,497
-158
466
-624
*
) “+” increase, “-” decrease
3.2. Portfolio investment
Net inflows of portfolio investment amounted to EUR 5,431 million in 2013,
up from EUR 3,546 million a year earlier. This was primarily attributable to the
Ministry of Public Finance tapping the international markets via a bond issue worth
USD 1.5 billion on the US market in February 2013 and a Eurobond issue in amount
of EUR 2 billion carried out in September, both of which led to a higher net incurrence
of liabilities (EUR 5,198 million, compared with EUR 4,422 million in 2012).
23
According to the BPM6 methodological framework, the asset and liability presentation has replaced
the directional principle in the presentation of direct investment data. For details on the presentation
of data according to the directional principle, see Foreign Direct Investment in Romania on the
NBR website.
National Bank of Romania
25
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 18. Portfolio investment
EUR millions
Total
Equity and
investment fund
shares
2012
2013
Net
Net
Net
Net
acquisition incurrence
Net acquisition incurrence
Net
of assets* of liabilities*
of assets* of liabilities*
468
4,014
-3,546
225
5,656
-5,431
Deposit-taking
corporations,
except the central
bank
Other sectors
Debt securities
Short term
Deposit-taking
corporations,
except the central
bank
188
314
-126
-47
781
-828
-4
11
-15
0
53
-53
192
280
28
303
3,700
-743
-111
-3,420
771
-47
272
-30
728
4,875
-398
-775
-4,603
367
20
0
20
-22
0
-22
0
-743
743
0
-398
398
8
252
0
4,443
8
-4,191
-9
302
0
5,273
-9
-4,970
0
21
-21
284
75
209
0
4,422
-4,422
0
5,198
-5,198
252
0
252
18
0
18
General
government
Other sectors
Long term
Deposit-taking
corporations,
except the central
bank
General
government
Other sectors
*
) “+” increase, “-” decrease
3.3. Other investment
In 2013, other investment recorded net outflows worth EUR 7,922 million,
almost double the year-earlier figure, mainly reflecting the central bank’s
repayments scheduled under the Stand-By Arrangement concluded with the
IMF in 2009 (EUR 3,665 million versus EUR 1,445 million in 2012) and the
contraction in non-residents’ deposits with resident deposit-taking corporations
(by EUR 2,577 million against EUR 1,997 million in the previous year), to which
added resident companies’ tendency to speed up repayments of trade credit from
non-residents (EUR 694 million compared with EUR 331 million). As a result,
liabilities shrank by EUR 7,795 million, after contracting by EUR 4,135 million
in 2012.
26
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 19. Other investment
EUR millions
Total
2012
2013
Net
Net
Net
Net
acquisition incurrence
Net acquisition incurrence
Net
of assets* of liabilities*
of assets* of liabilities*
-41
-4,135
4,094
127
-7,795
7,922
Currency and
deposits
Central bank
Deposit-taking
corporations, except
the central bank
General government
Other sectors
Loans
Central bank
Deposit-taking
corporations, except
the central bank
General government
Other sectors
Trade credit and
advances
Deposit-taking
corporations, except
the central bank
General government
Other sectors
Other accounts
receivable/payable
Deposit-taking
corporations, except
the central bank
General government
Other sectors
328
-2,037
2,365
163
-2,625
2,788
0
4
-4
0
-47
47
222
-1,997
2,219
-2
-2,577
2,575
3
103
76
0
-44
0
-1,982
-1,445
47
103
2,058
1,445
4
161
-152
0
-1
0
-4,490
-3,665
5
161
4,338
3,665
72
0
72
-196
0
-196
1
3
22
-559
-21
562
0
44
-205
-620
205
664
-445
-331
-114
-33
-694
661
0
0
0
0
0
0
-31
-414
0
-331
-31
-83
-17
-16
0
-694
-17
678
0
215
-215
90
14
76
32
296
-264
-41
-18
-23
-61
29
67
-148
-128
177
50
81
0
32
50
49
*
) “+” increase, “-” decrease
The current account deficit in 2013 accounted for less than 20 percent of the 2012
figure, whereas the capital account surplus stood more than 60 percent higher.
The combined current and capital account ended the year on a EUR 1,870 million
surplus (2012: EUR 4,171 million deficit), which enabled the release of the
necessary funds in the financial account to ensure financing for external loans,
to cover non-residents’ withdrawals and to consolidate the NBR’s foreign
exchange reserves.
National Bank of Romania
27
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
B. Romania’s international investment position
1. Overview
In 2013, the international investment position has been compiled in line with the
new methodological standards specified in the IMF’s Balance of Payments and
International Investment Position Manual, 6th edition.
The international investment position saw its debit balance diminishing to
EUR 89 billion at end-2013, down 1.8 percent from a year earlier. The balance on
the 2012 investment position (EUR -90,628 million) was thus recalculated based on
the new methodology by recognising the amount of EUR 1,148 million representing
allocations of Special Drawing Rights from the IMF under the “other investment”
item of foreign liabilities.
The net position has witnessed a steady deterioration over the past years, mainly
due to rising financing requirements that led to an incurrence of liabilities, while the
level of foreign assets remained unchanged. However, the net position improved
somewhat in 2013, primarily on account of a reduction in foreign liabilities
incurred during the previous years.
Chart 3. International investment position
150
EUR billions
100
50
0
‑50
‑100
2008
2009
assets
2010
liabilities
2011
2012
2013
net position
During 2013, foreign funding came largely in the form of portfolio investment
(long-term debt securities) and direct investment (equity, intercompany lending).
Non-residents’ loans and deposits made a negative contribution to foreign funding,
given external debt repayments and the maturing deposits, only a small share of
which was renewed, the same as in the previous year.
28
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 20. Foreign assets and liabilities by instrument at end-2013
EUR millions
Direct investment
Portfolio investment
Financial derivatives
Other investment
Reserve assets
Total
Assets
1,699
2,348
1
12,731
35,434
52,214
Liabilities
61,039
16,768
1
63,360
141,169
Net
-59,341
-14,420
0
-50,629
35,434
-88,955
Chart 4. Foreign assets and liabilities by instrument
100
percent
80
financial derivatives
portfolio investment
60
reserve assets
40
direct investment
other investment
20
0
Assets
Liabilities
The currency composition of foreign assets is dominated by the euro and the
US dollar, with a cumulated share of 85.7 percent. The foreign liabilities of
the investment position are mostly denominated in euro and lei, which jointly
account for 87.2 percent of the total. Foreign liabilities expressed in US dollars and
in Special Drawing Rights account for 10 percent of the total.
Table 21. Currency composition of foreign assets and liabilities
Total
EUR
USD
GBP
JPY
RON
CHF
RUN
XDR
Other
National Bank of Romania
31 December 2013
Foreign assets
Foreign liabilities
EUR millions
%
EUR millions
%
52,214
100.0
141,169
100.0
32,400
62.1
69,357
49.1
12,306
23.6
7,135
5.1
1,684
3.2
63
0.0
1,252
2.4
479
0.3
2,749
5.3
53,828
38.1
83
0.2
2,943
2.1
1,381
2.6
0
0.0
28
0.1
6,937
4.9
332
0.7
426
0.3
29
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Chart 5. Currency composition of foreign assets and liabilities
150
EUR billions
EUR
USD
120
RON
XDR
90
GBP
60
JPY
CHF
30
0
RUN
other
Assets
Liabilities
At end-2013, gross external debt totalled EUR 98.1 billion, down 2.8 percent
from EUR 100.9 billion at end-2012, amid repayments continuing in the period
under review. Loans from parent undertakings amounted to EUR 20.3 billion
(versus EUR 18.8 billion at end-2012), reflecting the preference for financing in
the form of intercompany lending. Foreign investment in the form of equity grew
by EUR 1.4 billion, totalling EUR 40.7 billion at end-2013, which is indicative of
non-resident partners’ ongoing propensity for long-term investment in the shares and
fund units of Romanian companies.
The monetary authority’s foreign assets remained unchanged from a year earlier,
as the net positive financial flows related to reserve assets were dampened by
revaluations resulting from changes in securities prices and exchange rates of the
major currencies. The central bank’s net position stood at EUR 29.6 billion at
end-2013 against EUR 25.6 billion in 2012.
Net capital inflows worth EUR 2.1 billion under reserve assets were offset
by revaluations from changes in prices (gold price and securities transactions,
EUR -1.6 billion) and in the exchange rate (EUR -0.5 billion), which made
Romania’s international reserve stick to the end-2012 reading. The foreign assets
of the banking sector equalled EUR 2.2 billion, up 17.4 percent from 31 December
2012. Foreign exchange assets of the National Bank of Romania and the
banking sector amounted to EUR 34.7 billion, up from the end-2012 level of
EUR 33.1 billion.
30
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 22. Foreign reserve assets
EUR millions
1. Romania’s international reserve
Gold
Foreign exchange
2. Credit institutions
Foreign exchange
3. Foreign reserve assets
of which:
3.1. Foreign exchange
31.12.2012
35,413
4,207
31,206
1,892
1,892
37,305
31.12.2013
35,435
2,910
32,525
2,222
2,222
37,657
33,099
34,747
The net debtor position of the banking sector shrank to EUR 23.9 billion, on account
of the decline in foreign liabilities, driven mainly by the lower share of deposits as a
means of funding over a period longer than one year.
Table 23. International investment position
Total
General government
Central bank
31.12.2012
EUR millions
%
-90,628
100.0
-22,970
25.3
25,557
-28.2
31.12.2013
EUR millions
%
-88,955
100.0
-27,302
30.7
29,644
-33.3
Deposit-taking corporations,
except the central bank
-27,094
29.9
-23,875
26.8
Other sectors
-66,121
73.0
-67,421
75.8
The net debtor position of the general government widened further by 18.9 percent
as against end-2012 (to EUR 27.3 billion), given the higher external debt of this
sector, which continued to finance the 2013 budget deficit via issues of government
securities on the external and domestic market.
The real sector witnessed a steady deterioration, its net debtor position widening by
2 percent (to EUR 67.4 billion) versus end-2012, given that non-resident investors
continued to increase their equity in local companies and to grant loans to subsidiaries
as the main means of funding. Financing via loans from entities other than parent
undertakings was in the form of short-term funds.
2. International investment position
2.1. Foreign assets
At end-2013, foreign assets stood at EUR 52,214 million, slightly up, i.e. 0.6 percent,
year on year.
The breakdown of foreign assets by main component of the investment position
remained almost unchanged from end-2012, with reserve assets further prevailing
(67.9 percent), ahead of “other investment” (24.4 percent), down slightly from
National Bank of Romania
31
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
a year earlier, portfolio investment (4.5 percent) and direct investment abroad
(3.3 percent).
At end-2013, the balance on residents’ direct investment came in at EUR 1,699 million,
close to the 2012 level, following a slight increase in equity concurrently with a
small reduction in intercompany lending to foreign companies.
Table 24. Foreign assets by instrument
Total
Direct investment
equity
debt instruments
Portfolio investment
equity and investment fund
shares or units
long-term debt securities
short-term debt securities
Financial derivatives
Other investment
other equity
loans
trade credit and advances
currency and deposits
other assets
Reserve assets
31.12.2012
EUR millions
%
51,892
100.0
1,682
3.2
345
0.7
1,337
2.6
2,054
4.0
31.12.2013
EUR millions
%
52,214
100.0
1,699
3.3
433
0.8
1,265
2.4
2,348
4.5
910
1.8
863
1.7
1,116
29
1
12,742
785
3,822
3,575
4,183
377
35,413
2.2
0.1
0.0
24.6
1.5
7.4
6.9
8.1
0.7
68.2
1,485
0
1
12,731
898
3,377
4,198
3,968
291
35,434
2.8
0.0
0.0
24.4
1.7
6.5
8.0
7.6
0.6
67.9
The balance on portfolio investment of resident investors (EUR 2,348 million)
surged by approximately EUR 300 million, 14.3 percent higher than at end-2012.
The breakdown of portfolio investment by instrument shows Romanian investors’
bias towards bonds or other medium- and long-term securities, as well as towards
shares of foreign companies, whereas investment in short-term securities was no
longer attractive.
During the period under review, the balance on other investment remained unchanged
from a year earlier; the breakdown by component shows that loans and deposits
posted a contraction, while other equity along with trade credits rose slightly.
At end-2013, Romania’s international reserves came in at EUR 35,435 million,
a level similar to that seen at end-2012, even after external debt service payments
had been made.
The breakdown of foreign assets by institutional sector shows that the central bank
further held the largest share (67.9 percent), ahead of the real sector (22.9 percent),
general government (4.9 percent) and the deposit-taking corporations, except the
central bank (4.2 percent).
32
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 25. Foreign assets by institutional sector
Total
Central bank
General government
31.12.2012
EUR millions
%
51,892
100.0
35,444
68.3
2,575
5.0
Deposit-taking corporations,
except the central bank
Other sectors
31.12.2013
EUR millions
%
52,214
100.0
35,465
67.9
2,563
4.9
2,303
4.4
2,208
4.2
11,570
22.3
11,978
22.9
2.2. Foreign liabilities
At end-2013, foreign liabilities amounted to EUR 141,169 million, down 0.9 percent
from the end of the previous year.
Table 26. Foreign liabilities by instrument
Total
Direct investment
equity
debt instruments
Portfolio investment
equity and investment fund
shares or units
long-term debt securities
short-term debt securities
Financial derivatives
Other investment
other equity
loans
trade credit and advances
currency and deposits
other liabilities
SDR allocations
31.12.2012
EUR millions
%
142,520
100.0
58,062
40.7
39,268
27.6
18,794
13.2
12,113
8.5
31.12.2013
EUR millions
%
141,169
100.0
61,039
43.2
40,714
28.8
20,326
14.4
16,768
11.9
2,395
1.7
2,385
1.7
8,676
1,042
1
72,344
0
47,171
1,848
21,470
707
1,148
6.1
0.7
0.0
50.8
0.0
33.1
1.3
15.1
0.5
0.8
14,222
161
1
63,360
0
41,605
1,565
18,827
261
1,102
10.1
0.1
0.0
44.9
0.0
29.5
1.1
13.3
0.2
0.8
The breakdown of foreign liabilities by main financial instrument shows that other
investment further held the largest share (44.9 percent), down 5.9 percentage points
versus 2012, followed by direct investment (43.2 percent) and portfolio investment
(11.9 percent).
At end-2013, the balance on non-residents’ direct investment stood at EUR 61,039
million, up 5.1 percent against end-2012. The weight of non-residents’ equity in
resident companies went up 1.2 percentage points, with similar developments being
reported for intercompany lending.
National Bank of Romania
33
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Direct investment in the form of intercompany lending targeted all economic sectors,
predominantly non-financial corporations that accounted for EUR 19.9 billion out of
a total EUR 20.3 billion.
Foreign investors held mostly unlisted shares on the Romanian capital market,
equalling EUR 36 billion in non-financial corporations, banks, insurance and financial
intermediation companies. Non-resident investors’ shares listed on the domestic
capital market amounted to EUR 4.7 billion, with the non-financial corporations
and deposit-taking corporations, except the central bank, as the main issuers.
Direct investment in the form of fund units totalled EUR 40.5 million at end-2013.
The interest of foreign investors from countries with tradition in investing in key
areas in Romania stayed unchanged in 2013 as well.
In 2013, the major foreign investors24 posted a similar geographic breakdown,
coming from wealthy countries such as the Netherlands, Austria, Germany, France
and Italy.
The balance on foreign investment by development region shows that the
Bucharest-Ilfov region was in the lead, followed by Centre and South (Muntenia),
West and South-East. The same as in previous years, North-East came in last in
terms of foreign direct investment.
By economic activity, foreign investment was channelled mostly to economic
activities such as manufacturing, financial intermediation and insurance, trade, and
electricity, gas and water companies.
The two components of direct investment posted similar developments during the
period under review, with equity and intercompany lending picking up 3.7 percent
and 8.2 percent respectively.
At end-2013, portfolio investment saw its share in total foreign liabilities moving
ahead 3.4 percentage points. The Ministry of Public Finance launched several
government security issues on the domestic capital market, partly purchased by
non-resident investors. The bias on the domestic market was towards acquiring
long-term EUR-denominated government securities. External funding was also
raised via issues of bonds on the foreign capital markets, which again proved
very attractive to non-residents. The balance on equity investment stood at
EUR 2,385 million at end-2013.
The Government of Romania first launched a prospectus for a bond issue worth
USD 1,500 million with a 4.375 percent coupon on the US market in February 2013.
In September, the MPF launched on the European capital market a second issue in
amount of EUR 1,500 million with a coupon set at 4.625 percent. Finally, October
saw the reopening of the September issue, totalling EUR 500 million at a coupon rate
of 4.625 percent. The 2013 bond issues on the foreign capital market were launched
at lower prices than in previous years and were well received by investors amid
24
34
Statistical survey on foreign direct investment in Romania in 2013 (National Bank of Romania and
National Institute of Statistics).
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
the inclusion of Romania’s sovereign bonds into JP Morgan’s GBI-EM index and
the Barclays Capital reference index as well as the improvement in macroeconomic
fundamentals.
Other investment amounted to EUR 63,360 million at end-2013, down 12.4 percent
from a year earlier, amid capital outflows in the form of interest payments related
to all categories of financial instruments, short- and long-term credits, as well as
deposits. Under other investments, a new component titled SDR allocations is
shown, which is specific to the new methodology presented in the IMF’s Manual,
sixth edition.
The breakdown of foreign liabilities by institutional sector indicates that, at
end-2013, the real sector still held the largest share, the same as in previous years,
followed by general government (with a rising share, due to increasing borrowing
requirements), deposit-taking corporations, except the central bank (with a smaller
share, due to a drop in the volume of deposits) and the central bank (whose share
narrowed on account of repayments in line with the schedule agreed for the external
funding package).
Table 27. Foreign liabilities by institutional sector
31.12.2012
EUR millions
%
142,520
100.0
9,887
6.9
25,545
17.9
Total
Central bank
General government
31.12.2013
EUR millions
%
141,169
100.0
5,820
4.1
29,865
21.2
Deposit-taking corporations,
except the central bank
29,397
20.6
26,083
18.5
Other sectors
77,691
54.5
79,400
56.2
Chart 6. Foreign liabilities by institutional sector
percent
4.1
central bank
21.2
general government
deposit‑taking corporations,
except the central bank
56.2
18.5
other sectors
National Bank of Romania
35
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
2.2.1. External debt
As of 2008, gross external debt entered an upward path that revealed borrowing
requirements by maturity, with its volatile component, i.e. the short term, displaying
an uneven path.
Chart 7. Gross external debt
120
EUR billions
100
80
60
short‑term
40
long‑term
gross external debt
20
0
2008
2009
2010
2011
2012
2013
At end-2013, external debt25 totalled EUR 98,069 million, down 2.8 percent from
end-2012, due to the drop in the short-term component and the long-term component
by 8.2 percent and 1.3 percent respectively.
Table 28. Foreign exchange reserve and external debt by currency
Total
EUR
USD
GBP
JPY
XDR
RON
Other
31 December 2013
Foreign reserve assets
External debt
EUR millions
%
EUR millions
%
35,435
100.0
98,069
100.0
24,321
68.6
69,357
70.7
8,251
23.3
7,135
7.3
1,626
4.6
63
0.1
1,204
3.4
479
0.5
28
0.1
6,937
7.1
0
0.0
10,729
10.9
4
0.0
3,369
3.4
The composition of the foreign exchange reserve by currency reveals that 92 percent
were accounted for by the euro and the US dollar. External debt posted a mixed
currency breakdown, with euro-denominated liabilities in the lead, followed by
those in domestic currency, US dollars and SDR.
25
36
External debt balance is cash-based, net of accrued unmatured interest.
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Chart 8. Reserve assets and external debt by currency
100
percent
EUR
80
USD
RON
60
XDR
40
GBP
JPY
20
other
0
Reserve assets
External debt
Long-term external debt ran at EUR 78,860 million at end-2013, down 1.3 percent
against end-2012, diminished by a negative adjustment stemming from exchange
rate changes (EUR -1,398.1 million) and debt-to-equity swaps (EUR -276.4 million).
This contraction was limited by security price movements (EUR 593.4 million)
and net inflows (EUR 4.7 million).
Long-term external debt by creditor at end-2013 shows that private creditors further
held the largest share, while official creditors saw their share slightly decreasing,
owing particularly to the repayments on the 2009 financing agreement. Out of
private creditors, foreign credit institutions continued to be long-term lenders to the
economy, ahead of foreign companies and other financial institutions, while portfolio
investment increased its share due to the further borrowing requirements.
Chart 9. Long-term external debt by creditor
100
percent
80
private banks
international institutions
60
portfolio investment
40
other
bilateral relations
20
0
National Bank of Romania
2012
2013
37
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 29. Medium- and long-term external debt by creditor
31.12.2012
31.12.2013
EUR millions % EUR millions %
Total
79,936
100.0
78,860
100.0
28,019
35.0
23,693
30.1
International institutions, of which:
IBRD
2,666
3.3
3,189
4.0
EIB
4,275
5.3
4,906
6.2
EBRD
1,898
2.4
1,709
2.2
EU
5,013
6.3
5,000
6.3
IMF
11,947
14.9
6,931
8.8
SDS-EC
922
1.2
897
1.1
OECF
531
0.7
415
0.5
129
0.2
79
0.1
Bilateral relations, of which:
Republic of Korea
26
0.0
0
0.0
Germany
84
0.1
66
0.1
Japan
6
0.0
6
0.0
USA
8
0.0
7
0.0
8,676
10.8
14,222
18.0
Portfolio investment, of which:
CS First Boston Switzerland
1,223
1.5
1,259
1.6
Deutsche Bank
706
0.9
714
0.9
JP Morgan
403
0.5
371
0.5
Erste Bank
1,139
1.4
1,167
1.5
Deutsche Bank Londra/HSBC
1,663
2.1
1,763
2.2
Barclays/Citigroup
1,168
1.5
1,000
1.3
Barclays/BNP Paribas/Citigroup
0
0.0
908
1.2
Citibank/HSBC/Soc Gen/Deutsche Bank
0
0.0
1,476
1.9
32,837
41.1
29,290
37.1
Private banks, of which:
Austria
13,174
16.5
11,000
13.9
Germany
1,514
1.9
1,256
1.6
France
2,188
2.7
1,824
2.3
Greece
3,039
3.8
2,771
3.5
Italy
766
1.0
721
0.9
Ireland
595
0.7
708
0.9
Luxembourg
1,795
2.2
1,684
2.1
Hungary
754
0.9
651
0.8
The Netherlands
5,950
7.4
5,783
7.3
United Kingdom
1,463
1.8
1,196
1.5
Other
10,274
12.9
11,575
14.7
Long-term external debt by maturity at end-2013 highlights that the share of debt
with more than 5 years maturity continued to rise from a year earlier, further holding
the larger share, while debt with maturity between 1 and 5 years declined slightly,
due chiefly to non-publicly guaranteed loans. This reveals that both general
government and non-financial corporations focus on maturities that ensure avoiding
peak debt repayments.
38
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 30. Long-term external debt by maturity
Total
1-5 years
Public debt
Publicly guaranteed debt
Non-publicly guaranteed debt
more than 5 years
Public debt
Publicly guaranteed debt
Non-publicly guaranteed debt
31.12.2012
EUR millions
79,936
17,554
2,502
111
14,941
62,382
29,495
1,313
31,574
%
100.0
22.0
3.1
0.1
18.7
78.0
36.9
1.6
39.5
31.12.2013
EUR millions
78,860
15,995
2,510
97
13,389
62,864
26,560
1,127
35,177
%
100.0
20.3
3.2
0.1
17.0
79.7
33.7
1.4
44.6
Chart 10. Long-term external debt by maturity
70
EUR billions
60
50
40
publicly guaranteed debt
30
public debt
20
non-publicly guaranteed debt
10
0
1-5 years
more than
5 years
2012
1-5 years
more than
5 years
2013
Long-term external debt by type of interest rate reveals that floating-rate loans
were further in the lead, but are currently on an downward path, the most
frequently used floating rates being 6M, 3M, and 1M EURIBOR. Fixed-rate loans
tended to increase, their rates being of up to 10 percent, with two variation bands of
up to and over 5 percent. A change is to be noted in the breakdown by interest rate,
given the preference for long-term loan agreements with as predictable as possible
debt service.
National Bank of Romania
39
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 31. Long-term external debt by interest rate
Total
Floating rates
of which:
IBRD STANDARD RATE
3M USD LIBOR
6M USD LIBOR
12M USD LIBOR
6M EUR LIBOR
1M EURIBOR
3M EURIBOR
6M EURIBOR
12M EURIBOR
Fixed rates
0.0-4.99%
5.0-9.99%
over 10.0%
31.12.2012
EUR millions
%
79,936
100.0
48,464
60.6
75
1,843
2,393
739
1,014
4,024
10,408
11,244
1,929
31,472
16,546
14,925
0
0.1
2.3
3.0
0.9
1.3
5.0
13.0
14.1
2.4
39.4
20.7
18.7
0.0
31.12.2013
EUR millions
%
78,860
100.0
45,788
58.1
46
1,313
2,021
654
899
3,447
9,603
13,172
2,146
33,072
12,944
20,128
0
0.1
1.7
2.6
0.8
1.1
4.4
12.2
16.7
2.7
41.9
16.4
25.5
0.0
Long-term external debt incurred by the central bank and the credit institutions
contracted, due to repayments and withdrawals on deposits by non-residents, while
the general government and the real sector saw an increase in debt, in line with the
developments in their financing requirements.
Table 32. Long-term external debt by institutional sector
2012
EUR millions
79,936
24,437
9,803
Deposit-taking corporations,
except the central bank
Other sectors
Total
General government
Central bank
40
%
100.0
30.6
12.3
2013
EUR millions
78,860
29,612
5,810
%
100.0
37.6
7.4
16,872
21.1
14,241
18.1
28,824
36.1
29,197
37.0
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Chart 11. Long-term external debt by institutional sector
100
percent
central bank
80
60
deposit‑taking corporations,
except the central bank
40
general government
20
other sectors
0
2012
2013
As regards the breakdown by instrument, the decrease in long-term external
debt was attributed to the declining share of non-residents’ loans and deposits in
favour of direct investment and portfolio investment instruments.
Table 33. Long-term external debt by instrument
Total
Direct investment instruments
Loans
Trade credit and advances
Currency and deposits
Debt securities
SDR allocations
Other liabilities
2012
EUR millions
%
79,936
100.0
10,522
13.2
42,835
53.6
74
0.1
16,653
20.8
8,676
10.9
1,148
1.4
28
0.0
2013
EUR millions
%
78,860
100.0
12,387
15.7
36,975
46.9
74
0.1
14,074
17.8
14,222
18.0
1,102
1.4
26
0.0
Chart 12. Long-term external debt by instrument
100
percent
SDR allocations
80
trade credit and advances
60
direct investment instruments
debt securities
40
currency and deposits
loans
20
0
National Bank of Romania
2012
2013
41
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Throughout 2013, the balance on short-term external debt dropped markedly
(by 8.2 percent) to EUR 19,209 million, making up 19.6 percent of total gross
external debt. Institutional sectors held various weights in the short-term external
debt, the real sector further making the largest contribution, ahead of deposit-taking
corporations, except the central bank, and general government.
Table 34. Short-term external debt by institutional sector
Total
Government sector
Central bank
Deposit-taking corporations,
except the central bank
Other sectors
2012
EUR millions
20,921
1,134
57
%
100.0
5.4
0.3
2013
EUR millions
19,209
253
10
%
100.0
1.3
0.1
5,329
25.5
4,791
24.9
14,401
68.8
14,154
73.7
The real sector resorted more to short-term loans in 2013 as well. Deposit-taking
corporations, except the central bank, continued to sharply reduce short-term flows,
the same as the general government, amid the possibility to change the maturity of
loans.
Chart 13. Short-term external debt by institutional sector
100
percent
central bank
80
general government
60
40
deposit‑taking corporations,
except the central bank
20
other sectors
0
42
2012
2013
National Bank of Romania
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Table 35. Short-term external debt by instrument
Total
Direct investment instruments
Loans
Trade credit and advances
Currency and deposits
Debt securities
Other liabilities
2012
EUR millions
20,921
8,550
4,969
1,775
3,907
1,042
678
%
100.0
40.9
23.7
8.5
18.7
5.0
3.2
2013
EUR millions
19,209
7,939
4,630
1,491
4,752
161
236
%
100.0
41.3
24.1
7.8
24.7
0.8
1.2
Short-term external debt by financial instrument shows an increase only in currency
and deposits, whereas the other components, despite their persistently large
shares, posted a downward trend, preserving however the usual ranking, namely
intercompany lending, loans, trade credit and advances. A downward-oriented shift
occurred in the short-term debt securities issued by the general government that
opted for longer maturity issues.
Chart 14. Short-term external debt by instrument
100
percent
80
other liabilities
debt securities
60
currency and deposits
trade credit and advances
40
loans
20
0
direct investment instruments
2012
2013
In 2013, external debt service amounted to EUR 58,251 million, of which principal
repayments equalled EUR 54,873 million and payments of interest and commissions
totalled EUR 3,378 million. Looking at the breakdown by maturity, the share of
short-term external debt service decreased to 57.8 percent in 2013 from 65.6 percent
in 2012, concurrently with the widening share of long-term external debt service
from 34.4 percent to 42.2 percent.
Table 36. External debt service (EDS)
EDS (EUR millions)
EDS/GDP (%)
EDS/EXP* (%)
2012
54,268.0
40.5
109.0
2013
58,251.4
40.3
101.6
*
) Exports of goods and services
National Bank of Romania
43
Romania’s
Balance of Payments
and International
Investment Position
2013
Main developments in 2013
Throughout 2013, the share of external debt service stood above 100 percent of
exports and over 40 percent of GDP, in the context of faster economic growth and
swifter export advance.
At end-2013, net external debt26 came in at EUR 50,960 million (35.2 percent of
GDP), the net international investment position stood at EUR -88,955 million
(-61.5 percent of GDP), whereas gross external debt totalled EUR 98,069 million,
accounting for 67.8 percent of GDP. Direct investment as a share in GDP rose to
43.4 percent in 2012, subsequently dropping slightly to 42.2 percent in 2013.
The analysis of the main indebtedness indicators in 2013 shows that the share of
long-term external debt in GDP declined to 54.5 percent, the ratio of external debt to
exports of goods and services was 171.1 percent, while the share of interest in total
exports of goods and services decreased to 5.9 percent. At end-2013, Romania’s
international reserve (foreign currency and gold) covered 7.3 months of imports of
goods and services. The ratio of the National Bank of Romania’s foreign currency
reserve to short-term external debt27 reached 169.3 percent at end-2013, compared
with 149.2 percent at end-2012.
26
Calculated as the difference between foreign assets and foreign liabilities related to all debt
instruments (loans, currency and deposits, bonds and money market instruments, trade credits).
27
Including external debt with maturity of up to one year.
44
National Bank of Romania
Statistical Section
Tables
Balance of Payments, 2012-2013................................................................................ 49
Quarterly Balance of Payments, 2013......................................................................... 50
Romania’s International Investment Position, 2008-2013........................................... 52
Romania’s Gross International Reserve, 2008-2013................................................... 54
External Debt Indicators, 2008-2013........................................................................... 54
BALANCE OF PAYMENTS, 2012-2013
EUR millions
Item
1. Current account
A. Goods and services
a. Goods
– general merchandise on a BOP basis
– net exports of goods under merchanting
goods acquired under merchanting
goods sold under merchanting
b. Services
– manufacturing services on goods
– transport
– travel
– other services
B. Primary income
– compensation of employees
– investment income
– other primary income
C. Secondary income
– general government
– other sectors
2. Capital account
A. Capital transfers
– general government
– other sectors
B. Acquisition/disposal of non-produced/
non-financial assets
2012
2013
Credit
56,961
49,774
39,901
39,888
12
0
12
9,873
1,483
2,513
1,142
4,735
2,372
571
809
992
4,815
835
3,980
2,237
1,787
1,685
102
Debit
63,013
56,232
48,832
48,832
0
0
0
7,400
127
1,328
1,429
4,516
4,676
91
4,314
271
2,105
1,274
831
357
190
126
65
451
167
Net
Net
acquisition incurrence
of assets* of liabilities*
3. Financial account
A. Direct investment
– equity
equity, except reinvested earnings
reinvested earnings
– debt instruments
B. Portfolio investment
– equity and investment fund shares or units
– debt securities
C. Financial derivatives
D. Other capital investment
1. equity, other than direct investment
and portfolio investment
2. currency and deposits
3. loans
4. insurance, pension and standardised
guarantee schemes
5. trade credit and advances
6. other accounts receivable/payable
7. SDRs
E. NBR’s reserve assets
4. Errors and omissions (net)
Balance
-6,052
-6,459
-8,932
-8,944
12
0
12
2,473
1,356
1,185
-287
219
-2,304
480
-3,505
721
2,711
-438
3,149
1,880
1,596
1,559
37
284
Credit
65,158
57,306
43,879
43,826
53
-236
289
13,427
2,275
3,880
1,196
6,076
2,505
553
775
1,177
5,347
1,544
3,803
3,163
3,021
3,018
3
Debit
66,326
58,049
49,322
49,322
0
0
0
8,727
142
1,386
1,547
5,652
5,617
68
5,424
125
2,660
1,579
1,081
125
115
11
104
142
10
Net
Net
acquisition incurrence
of assets* of liabilities*
Net
Balance
-1,168
-743
-5,443
-5,496
53
-236
289
4,700
2,134
2,494
-351
424
-3,112
485
-4,649
1,052
2,687
-35
2,722
3,038
2,906
3,007
-101
132
Net
-1,509
-183
-88
-65
-24
-96
468
189
279
-300
-42
1,597
2,195
795
2,676
-1,881
1,401
4,013
314
3,700
-477
-4,135
-3,106
-2,379
-883
-2,741
1,857
-1,496
-3,546
-125
-3,421
177
4,093
2,035
-27
129
127
1
-156
225
-47
272
-432
127
362
2,897
2,430
2,768
-338
466
5,656
781
4,875
-397
-7,795
1,674
-2,924
-2,302
-2,641
339
-622
-5,432
-828
-4,603
-35
7,922
0
0
0
57
0
57
330
77
-2,036
-1,984
2,366
2,060
163
-152
-2,625
-4,490
2,788
4,338
0
0
0
2
0
1
-447
-1
0
-1,452
0
-331
216
0
0
0
-116
-217
0
-1,452
1,066
-34
90
0
2,143
0
-694
14
0
0
0
660
76
0
2,143
-197
*
) “+” increase, “-” decrease
Note: Totals may not add up due to rounding.
National Bank of Romania
49
QUARTERLY BALANCE OF PAYMENTS, 2013
EUR millions
Item
1. Current account
A. Goods and services
a. Goods
– general merchandise on a BOP basis
– net exports of goods under merchanting
goods acquired under merchanting
goods sold under merchanting
b. Services
– manufacturing services on goods
– transport
– travel
– other services
B. Primary income
– compensation of employees
– investment income
– other primary income
C. Secondary income
– general government
– other sectors
2. Capital account
A. Capital transfers
– general government
– other sectors
B. Acquisition/disposal of non-produced/
non-financial assets
Credit
15,098
13,163
10,256
10,254
2
-34
35
2,907
514
835
242
1,316
784
120
121
543
1,151
275
876
292
256
254
2
Q1
Debit
15,119
13,122
11,248
11,248
0
0
0
1,874
44
288
307
1,235
1,138
17
1,097
24
858
644
214
61
58
11
47
37
3
Net
Net
acquisition incurrence
of assets* of liabilities*
3. Financial account
A. Direct investment
– equity
equity, except reinvested earnings
reinvested earnings
– debt instruments
B. Portfolio investment
– equity and investment fund shares or units
– debt securities
C. Financial derivatives
D. Other capital investment
1. equity, other than direct investment
and portfolio investment
2. currency and deposits
3. loans
4. insurance, pension and standardised
guarantee schemes
5. trade credit and advances
6. other accounts receivable/payable
7. SDRs
E. NBR’s reserve assets
4. Errors and omissions (net)
Balance
-21
40
-993
-993
2
-34
35
1,033
470
548
-65
81
-354
103
-976
519
293
-369
662
231
197
243
-46
34
Net
Credit
16,378
14,179
10,811
10,801
9
-25
34
3,368
561
965
289
1,553
852
131
182
539
1,347
413
934
602
566
566
0
Q2
Debit
16,162
14,263
12,038
12,038
0
0
0
2,225
35
360
397
1,433
1,234
16
1,189
30
665
380
285
19
17
0
17
36
2
Net
Net
acquisition incurrence
of assets* of liabilities*
Balance
216
-84
-1,227
-1,236
9
-25
34
1,143
526
605
-107
120
-382
115
-1,007
510
682
34
648
583
549
566
-17
34
Net
1,030
-563
47
47
0
-610
289
14
275
-115
446
895
494
600
740
-140
-106
3,374
48
3,327
-98
-2,876
135
-1,058
-553
-693
140
-505
-3,085
-33
-3,052
-17
3,322
718
847
1
0
0
846
-141
-28
-113
-118
-255
-942
610
359
506
-147
250
312
99
213
-107
-1,757
1,659
237
-359
-506
147
596
-452
-127
-326
-11
1,501
53
0
53
0
0
0
359
-76
-1,355
-1,073
1,714
998
-300
93
-380
-1,338
80
1,431
0
0
0
0
0
0
133
-24
0
973
0
-412
-36
0
0
0
545
12
0
973
-75
-40
-8
0
385
0
-108
69
0
0
0
68
-78
0
385
862
*
) “+” increase, “-” decrease
Note: Totals may not add up due to rounding.
50
National Bank of Romania
QUARTERLY BALANCE OF PAYMENTS, 2013
EUR millions
Credit
16,408
14,667
11,214
11,199
15
-70
85
3,453
579
1,023
320
1,531
435
171
233
30
1,306
270
1,037
1,165
1,133
1,132
1
Q3
Debit
17,016
15,111
12,949
12,949
0
0
0
2,162
31
363
378
1,390
1,246
18
1,194
33
658
363
295
18
17
0
17
32
1
Net
Net
acquisition incurrence
of assets* of liabilities*
Balance
-606
-444
-1,735
-1,750
15
-70
85
1,291
548
660
-58
141
-811
153
-962
-3
649
-93
742
1,147
1,116
1,132
-17
31
Net
Credit
17,275
15,298
11,599
11,571
28
-108
136
3,699
622
1,057
345
1,675
434
131
239
64
1,543
586
957
1,104
1,066
1,066
0
Q4
Debit
18,030
15,553
13,087
13,087
0
0
0
2,466
32
376
465
1,593
1,998
16
1,944
38
479
192
287
26
22
0
22
38
4
Net
Net
acquisition incurrence
of assets* of liabilities*
Item
Balance
-756 1. Current account
-255
A. Goods and services
-1,488
a. Goods
-1,516
– general merchandise on a BOP basis
28
– net exports of goods under merchanting
-108
goods acquired under merchanting
136
goods sold under merchanting
1,233
b. Services
590
– manufacturing services on goods
682
– transport
-121
– travel
82
– other services
-1,565
B. Primary income
114
– compensation of employees
-1,705
– investment income
26
– other primary income
1,064
C. Secondary income
394
– general government
670
– other sectors
1,078 2. Capital account
1,044
A. Capital transfers
1,066
– general government
-21
– other sectors
B. Acquisition/disposal of non-produced/
34
non-financial assets
Net
987
90
74
74
0
15
-21
-57
35
-96
-24
569
821
702
780
-78
119
1,632
-8
1,639
-100
-1,785
419
-731
-627
-706
79
-104
-1,653
-49
-1,604
4
1,761
-699
-401
7
6
1
-407
98
24
75
-103
-40
-158
972
769
742
27
203
338
642
-304
-92
-1,376
-541
-1,372
-762
-736
-26
-611
-240
-618
379
-11
1,335
4
0
4
0
0
0
-110
-113
-778
-1,148
668
1,035
214
-56
-112
-931
326
875
1
0
1
1
0
1
177
17
0
1,038
0
131
9
0
0
0
47
7
0
1,038
-121
-304
105
0
-253
0
-305
-28
0
0
0
1
133
0
-253
-863
3. Financial account
A. Direct investment
– equity
equity, except reinvested earnings
reinvested earnings
– debt instruments
B. Portfolio investment
– equity and investment fund shares or units
– debt securities
C. Financial derivatives
D. Other capital investment
1. equity, other than direct investment
and portfolio investment
2. currency and deposits
3. loans
4. insurance, pension and standardised
guarantee schemes
5. trade credit and advances
6. other accounts receivable/payable
7. SDRs
E. NBR’s reserve assets
4. Errors and omissions (net)
*
) “+” increase, “-” decrease
Note: Totals may not add up due to rounding.
National Bank of Romania
51
ROMANIA’S INTERNATIONAL INVESTMENT POSITION, 2008-2013
EUR millions, end of period
Institutional sector
2008
2009
2010
2011
2012
2013
27,885
24,026
25,712
25,803
25,557
29,644
28,297
30,888
35,982
37,283
35,444
35,464
26,221
28,303
32,432
33,193
31,206
32,525
2,049
2,556
3,518
4,058
4,207
2,910
– foreign liabilities, of which:
412
6,862
10,270
11,480
9,887
5,820
currency and deposits
303
79
22
53
57
10
0
5,686
9,083
10,231
8,654
4,708
83
1,073
1,139
1,168
1,148
1,102
-7,863
-11,216
-15,939
-20,260
-22,970
-27,303
2,391
2,366
2,592
2,734
2,575
2,563
2,391
2,366
2,592
2,734
2,575
2,563
622
630
713
797
785
898
1,654
1,623
1,761
1,781
1,715
1,625
– foreign liabilities, of which:
10,254
13,582
18,531
22,994
25,545
29,866
portfolio investment
2,706
3,329
4,275
6,098
9,500
14,214
debt securities
2,706
3,329
4,275
6,098
9,500
14,214
7,548
10,253
14,256
16,896
16,045
15,652
37
80
115
132
92
92
7,507
10,172
14,139
16,062
15,952
15,535
-30,916
-26,020
-27,912
-28,749
-27,094
-23,876
1,648
3,156
2,722
1,975
2,303
2,208
155
191
109
36
41
42
155
191
109
36
41
40
0
0
0
0
0
2
146
301
557
403
414
578
2
2
82
33
31
19
144
299
475
370
383
559
other investment, of which:
1,347
2,664
2,056
1,536
1,848
1,588
currency and deposits
1,117
2,318
1,721
1,158
1,369
1,348
209
311
285
344
413
214
21
35
50
34
66
26
32,564
29,176
30,634
30,724
29,397
26,084
6,386
6,476
6,571
6,501
7,137
6,658
6,386
6,476
6,571
6,501
7,137
6,657
I. Central bank
– foreign assets, of which:
foreign exchange reserve
monetary gold
loans from the IMF
SDR allocations
II. General government
– foreign assets, of which:
other investment, of which:
other equity
trade credit and advances
other investment, of which:
currency and deposits
loans
III. Deposit-taking corporations, excluding
the central bank
– foreign assets, of which:
direct investment
equity
debt instruments
portfolio investment
equity and investment fund shares or units
debt securities
loans
other foreign assets
– foreign liabilities, of which:
direct investment
equity
debt instruments
portfolio investment
equity and investment fund shares or units
debt securities
other investmenti, of which:
currency and deposits
other foreign liabilities
52
0
0
0
0
0
1
299
233
162
93
278
560
67
56
36
50
60
394
232
177
126
43
218
166
25,879
22,467
23,901
24,130
21,982
18,866
25,516
22,256
23,854
24,098
21,321
18,724
364
211
47
31
661
141
National Bank of Romania
ROMANIA’S INTERNATIONAL INVESTMENT POSITION, 2008-2013
(continued)
EUR millions, end of period
Institutional sector
2008
2009
2010
2011
2012
2013
-58,196
-61,604
-60,846
-62,352
-66,121
-67,420
– foreign assets, of which:
7,398
8,067
10,247
11,419
11,570
11,979
direct investment
1,586
1,528
1,800
1,939
1,641
1,657
303
120
272
337
304
394
1,283
1,408
1,528
1,602
1,337
1,263
936
892
1,025
1,206
1,640
1,770
equity and investment fund shares or units
554
402
502
692
879
844
debt securities
382
490
523
514
761
926
other investment, of which:
4,876
5,647
7,422
8,274
8,289
8,550
currency and deposits
IV. Other sectors
equity
debt instruments
portfolio investment
1,349
1,313
1,747
2,173
2,446
2,614
loans
2,325
2,539
2,994
3,188
3,162
3,163
trade credit and advances
1,114
1,751
2,612
2,767
2,468
2,573
88
43
70
147
214
200
– foreign liabilities, of which:
65,594
69,671
71,093
73,771
77,691
79,399
direct investment
40,841
42,624
45,012
47,637
50,925
54,382
equity
28,505
29,124
28,961
30,503
32,131
34,057
debt instruments
12,336
13,500
16,051
17,134
18,794
20,325
portfolio investment
1,412
1,357
1,377
1,330
2,334
1,995
1,398
1,332
1,336
1,289
2,334
1,991
14
25
41
41
0
4
23,341
25,690
24,704
24,804
24,431
23,022
20,567
24,273
22,956
22,764
22,565
21,362
2,770
1,417
1,744
1,972
1,847
1,564
other foreign assets
equity and investment fund shares or units
debt securities
other investment, of which:
loans
trade credit and advances
other foreign liabilities
Net position
– foreign assets
– foreign liabilities
4
0
4
69
19
95
-69,090
-74,814
-78,985
-85,558
-90,628
-88,955
39,734
44,477
51,543
53,411
51,892
52,214
108,824
119,291
130,528
138,969
142,520
141,169
Note: Totals may not add up due to rounding.
National Bank of Romania
53
ROMANIA’S GROSS INTERNATIONAL RESERVE, 2008-2013
EUR millions, end of period
National Bank of Romania
– gold
– foreign exchange reserve
Commercial banks
– foreign currency
Gross international reserve
2008
2009
2010
2011
2012
2013
28,270
30,859
35,951
37,252
35,413
35,435
2,049
2,556
3,518
4,058
4,207
2,910
26,221
28,302
32,432
33,194
31,206
32,525
1,344
2,716
2,298
1,639
1,892
2,222
1,344
2,716
2,298
1,639
1,892
2,222
29,614
33,574
38,249
38,891
37,305
37,657
27,565
31,018
34,731
34,833
33,098
34,747
2011
2012
2013
of which:
Gross foreign exchange reserve
EXTERNAL DEBT INDICATORS, 2008-2013
2008
2009
2010
EUR millions
External debt (ED)
72,467
82,303
93,624
99,926
100,857
98,069
– medium- and long-term (MLT)
51,875
66,714
74,075
77,131
79,936
78,860
– short-term (ST)
20,592
15,589
19,549
22,795
20,921
19,209
142,392
120,483
126,816
133,344
133,905
144,664
Exports of goods and services (EXP)
38,281
32,562
40,570
48,797
49,775
57,306
Imports of goods and services (IMP)
56,969
40,234
48,054
56,115
56,233
58,049
External debt service (EDS)
45,575
49,038
43,775
46,233
54,268
58,251
42,338
46,252
40,745
42,631
50,339
54,873
3,237
2,786
3,030
3,602
3,929
3,378
28,270
30,859
35,951
37,252
35,413
35,435
GDP
– principal repayment
– interest payments (INT)
Romania’s international reserve (IR)
percent
ED/GDP
50.9
68.3
73.8
74.9
75.3
67.8
MLT/GDP
36.4
55.4
58.4
57.8
59.7
54.5
ED/EXP
189.3
252.8
230.8
204.8
202.6
171.1
MLT/EXP
135.5
204.9
182.6
158.1
160.6
137.6
EDS/EXP
119.1
150.6
107.9
94.7
109.0
101.6
EDS/GDP
32.0
40.7
34.5
34.7
40.5
40.3
161.2
158.9
121.8
124.1
153.2
164.4
8.5
8.6
7.5
7.4
7.9
5.9
28.4
18.9
20.9
22.8
20.7
19.6
9.1
13.4
26.8
29.5
27.8
24.2
8.0
7.6
7.3
EDS/IR
INT/EXP
ST/ED
Multilateral/ED
months
IR/IMP
54
6.0
9.2
9.0
National Bank of Romania