Romania Public Debt Bound To Rise Further – S&P

Romania’s public debt will continue its rapid advancement seen in the past two years and is likely to rise to 27.4% of the gross domestic product this year, from 21.8% of GDP in 2009, as a result of mounting deficits, Standard & Poor's said in a report.

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It said Romania's estimated general government debt for 2010 is lower than that of its peers in the region, such as Croatia (36.3%), Serbia (35.5%), and Hungary (80.4%), but is higher than that of Bulgaria (16%).

"Nevertheless, Romania's poor budgetary performance implies, in our view, that gross debt is still on the rise; according to our estimates, it is likely to reach about 32.5% of GDP by year-end 2011," the report noted.

S&P estimates Romanian public debt will reach 36.6% of GDP in 2013.

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