Analyst warns rising public debt service hinders Romanian Govt.’s capacity to stimulate growth
<p>The latest data revealing widening twin deficits in Romania, published at the end of last week, prompted concerns and pushed up the yield of the 10-year bonds to 6.89% from 6.75% before, putting pressure on the public debt service, warned Adrian Codirlasu, deputy president of the CFA Romania Society.</p>

<p>This is severely hindering the government’s capacity to provide fiscal stimulus in the coming quarters, when such a policy is needed more, he explained, as quoted by <a href="https://www.economica.net/vine-recesiunea-pana-la-sfarsitul-anului-ponderea-dobanzilor-la-datoria-publica-ar-putea-creste-de-la-12-la-25-sau-chiar-3-din-pib_773600.html?mc_cid=995e47f354&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Economica.net</a>.</p>

<p>The interest on public debt rose by 17% in the first seven months of 2024 to 1.2% of GDP (still at the same level as in January-July 2023), and Codirlasu expects these costs could increase to 2.5% or even 3% of GDP by the end of the year from 1.9% in 2023.</p>

<p><em>iulian@romania-insider.com</em></p>

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