Romania’s public debt increased by RON19.3bn (€3.9bn) in July, when the government issued €3.5bn Eurobonds, to RON545.3bn at the end of the month, the finance ministry announced.
However, the debt-to-GDP ratio eased to 49.3% at the end of July, from 49.5% reported one month earlier. The ratio had climbed up rapidly through 2020, by 12pp, on a combination of public borrowing and shrinking real GDP (which continued to slightly grow in nominal terms). But as the government had borrowed in advance last year and GDP resumed robust growth in 2021, the ratio has stabilised.
This was possible thanks to the methodology that provisions that the ratio is calculated under the latest available value of the four-quarter GDP, at the date of the reporting.
On September 7, the statistics office INS reported Q2 GDP and the four-quarter GDP calculated as of the end of June was 2.8% higher (in nominal terms) compared to that calculated at the end of March — just enough to push down the public debt to GDP ratio.