The share of financial commitments by public administrations remained, between 2015 and Q1 2017, at the same level of 45.2% of GDP, according to the most recent report on the administrations’ financial accounts issued by the National Bank of Romania (BNR).
For comparison, the non-government credit balance amounted to less than 27.5% of GDP on May 31, 2017, while the public debt is about 40% of GDP.
The value of the nominal GDP for 2016 was almost 761.5 billion lei, according to the National Institute of Statistics and could be over 816.5 billion lei in 2017, according to the National Prognosis Commission.
The share of debt securities denominated in lei and foreign currency also stood below 30% of GDP and registered a 0.6 percentage point increase in Q1/2017, up to 29% of GDP, according to the provisional data reported by BNR.
„Both for short-term debt securities and long-term debt securities we saw increases based on the new securities issues (at a faster rate than the repurchases on each type of maturity),” says the BNR report.
Evolution of the public administrations’ financial commitments
Commercial debts of the Romanian public administrations increased by 0.3 percentage points to 7.4% of GDP in Q1/2017. Loans decreased by 0.9 percentage points, accounting for 8.2 percent of GDP at the end of the first quarter of 2017, an evolution due to the reimbursements to third parties.
The financing need of the public administrations was 0.2% of GDP in the first quarter of 2017 compared to 0.6% of GDP in Q1/2016.
The financing need of the public administrations was, with some exceptions, higher than the financing capacity, since 1998.
The need of „central administration” in Q1/2017 was 1% of GDP and 0.9% of GDP a year ago.
„Local administrations” had a financing capacity of 0.7% of GDP in the first quarter of 2017, 0.4 percentage points more than in the first quarter of 2016.
„Social security administrations” had a financing capacity in the first quarter of 2017 of 0.1% of GDP, as well as in the first quarter of 2016 (0.002% of GDP).
