BAKU, Azerbaijan, March 17. Romania’s public debt rose by 22.9% year-on-year, reaching 193.9 billion euros by the end of December, marking an increase of 36.2 billion euros over the year, Trend reports.
In December alone, the debt grew by 5.5 billion euros, even though the Treasury did not issue any foreign exchange bonds. This rise was mainly due to the issuance of bills and bonds on the local market, as well as loans from local banks and other cash management instruments.
The public debt-to-GDP ratio increased by 5.7 percentage points in 2024, reaching 54.6% by year-end, up from the 48%-49% range seen over the previous three years. The ratio is expected to rise further in 2025, although at a slower pace, due to fiscal consolidation efforts following the 8.7%-of-GDP public deficit in 2024.
The most significant increase in Romania’s public debt occurred in 2020, during the COVID-19 pandemic, when borrowing surged to finance economic aid amid a contracting economy. At the end of 2024, Romania’s public debt structure was a mix of local and foreign bonds, with bonds issued to households showing notable growth.