Acta Universitatis Danubius. Œconomica, Vol 10, No 6 (2014)

Abstract

The foreign debt is a solution for supplementing the internal savings. The objectives of the article[1] are to analyze the evolution of Romania’s medium and long-term foreign debt and of its components between 2005 and 2013, as well as the structure by creditors of the medium and long term Romanian public foreign debt, to highlight some of the causes that explain its evolution and structure and to show if Romania’s foreign debt is sustainable, using comparative analyses, qualitative and quantitative evaluations, interpretations and correlations. The results of the analysis show that 2009 has represented a turning point in the evolution of the Romanian foreign debt on the medium and long term and its components. Also, although the values of the analyzed external debt indicators still show a good payback and indebtedness capacity of our country, a complex and coherent reimbursement strategy must be developed in agreement with the progress of the economic reform. An indebtedness strategy should also be drawn up, taking into consideration an optimal ratio between the different maturities of foreign debt, in order to avoid payback peaks.

[1] The article is based on the chapter "Assessing the balance of payments", from the research project "The financial state of Romania" elaborated in CFMR "Victor Slăvescu" in 2013, under the coordination of Prof. E. Dinga, PhD