Romania’s Foreign Debt: Trend, Structure, Indicators

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, Ph

Connections between the Concepts of Equality and Non-Discrimination and Foreign Direct Investments

The purpose of the paper consists in introducing the concepts of equality and discrimination. Also, the author presents the economic implications of these concepts and their interdependencies with foreign direct investments. The research methods used consist in comparative analysis in time and space, qualitative and quantitative evaluations, interpretations and correlations. The analysis shows that women's participation in the economic activity is important not only for reasons of fairness, but also as a strategic element. The undervaluation of the work of women and the improper use of their skills mean an inadequate allocation of resources, a loss of competitivity. Another result refers to the fact that the equal treatment of men and women depends on the mentality, culture and traditions from the host country, but also on those from the country of origin of foreign direct investments companies. Due to the connection between companies and the equal opportunity concept, I consider that finding a solution to the equal opportunity problem should begin at the company level, beginning with the employee selection process to the remuneration, treatment, etc. I consider, that in Romania, one can try to solve the problem of poverty and, implicitly, of the equal opportunity, by drawing foreign direct investments towards the poorly developed regions

Financing the Current Account Deficit through Foreign Direct Investments versus External Loans

The purpose of the article is to compare the financing of the current account deficit by foreign direct investments and by external loans, presenting the advantages and disadvantages of each type of financing. The analysis shows that both foreign direct investments and external loans may have positive and negative effects on the economy of the host country. In addition, some advantages of foreign direct investments have disappeared in recent years (eg stability has been partly replaced by volatility). In the article, the author also presents the characteristics of current account deficit financing in Romania during the period 2006-2018. Concerning the foreign debt, it is noticed that in Romania there has been a replacement of institutional creditors with private creditors, which we consider to be a negative evolution of the situation of the Romanian economy from the point of view of the reimbursement effort and the sustainability. The research methods used consist in comparative analysis in time, qualitative and quantitative evaluations, interpretations and correlations

A Look at the Trend and Features of the Romanian Current Account over the Past Years

The balance of the current account provides the possibility of assessing the level of economic development of a country, its degree of foreign dependence and the international specialization of each economy. This article[1] aims to analyze the evolution of the Romanian current account balance and of some of its components during the period 2013-2016, showing the determinants and some of the factors influencing Romania's current account. Also, there are analysed the ways of financing the Romanian current account deficit, highlighting the advantages and disadvantages of this financing structure. The research methods used consist in comparative analysis in time, qualitative and quantitative evaluations, interpretations and correlations. The analysis shows that the services sector has developed, which increased the surplus of the services subaccount. Another result highlights that currently, the evolution of the current account deficit is sustainable in Romania. Also, the author concludes that the current account deficit of Romania has been and is still financed mainly from inflows of foreign direct investments. [1] The article is based on the chapter "The assessment of the external equilibrium", from the research project "The financial stance of Romania, edition 2016" elaborated in CFMR "Victor Slăvescu" in 2016, under the coordination of C. Marin, Ph.D

The Analysis of the Situation of Foreign Direct Investments in Romania

Foreign direct investments represent one of the ways of financing any economy. But like any source of financing, foreign direct investments have advantages and disadvantages. This article aims to analyze and present the developments in foreign direct investments in Romania, the fields and areas where they have been made, the structure of these capital flows, as well as the origin of these inflows of foreign direct investments. Also, the author intends to analyze the effects of FDI inflows on the Romanian economy in terms of foreign trade. The conclusions of the article will show to what extent foreign direct investments have contributed positively to the development of the Romanian economy. The research methods used consist in comparative analysis in time, qualitative and quantitative evaluations, interpretations, correlations, as well as in addressing the issue from different perspectives. The analysis shows that in Romania, foreign direct investments have not had many positive effects, having been channeled mainly towards activities with medium processing level and medium technological level and towards speculative services. Another result highlights that the activities of foreign direct investments companies depend to a large extent on imports, so they do not support Romania’s economic development

Reasons for and against the Early Adoption of the Euro in Romania

 In the context of the current turmoil in the European Union and the euro area and taking into account the discussions on the remaining or the exit of Greece from the euro area, in our country there is a trend that supports the early (faster) euro adoption. Given that Romania can not opt out of joining the euro area, as is the case of the United Kingdom and Denmark, the problem which remains to be solved is when and how our country will enter in the euro area. Therefore, this article aims to analyze the indicators of the scoreboard for the surveillance of macroeconomic imbalances for our country, at the same time offering a number of reasons for and against a faster adoption of the euro in Romania. The paper argues its observations based on international and national documents and Eurostat database. The study may have a series of implications for the politicians, public policy administrators, academics and researchers, bringing its contribution to the euro adoption debates

Modeling the Financial Behavior of Population (I) – Conceptual Assignations

The paper shows a few conceptual assignations concerning the financial behavior of the population. Thus, there are defined attached predicates (the inclusion into the economic behavior category, the existence of a monetary factor, the action for goods and non-autonomous flows, as well as for goods and nominal flows), the sources that generate the financial behavior (acquisition of real goods and services, acquisition of financing sources, acquisition of saving sources), the process of non-autonomous financial flow formation and finally, there are identified categories of nominal flows attached to the financial behavior of the population.logic model, financial behavior, sustainability

A descriptive assessment of the effects of Lehman Brothers’ shock on the external equilibrium in some Euro Area countries

The purpose of this article is the assessment of the way in which the propagation of the Lehman-Brothers shock has been reflected on the developments in the balance of payments of some countries in the euro area and the highlighting of the asymmetries, which have emerged due to the generated effects. The motivation is represented by the importance of the asymmetries manifestation within a monetary area, by the effects they have on the implementation of the common policies, and by their causes: are these asymmetries generated by asymmetric macroeconomic shocks or by the accumulation in time of some vulnerable elements in the economy? The paper is a capitalization of the research project “External equilibrium and asymmetric shocks” elaborated in 2012, at “Victor Slăvescu” Centre for Financial and Monetary Research of "Costin C. Kiriţescu" Institute for Economic Research, Romanian Academy

Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis

The importance of compliance with nominal convergence criteria is crucial for adopting the euro in New Member States (NMS). Although some of these countries have made remarkable efforts for complying with nominal criteria, structural and conjunctional macroeconomic imbalances have created big problems in this respect. Also, the global financial crisis revealed new challenges for the NSM which are not yet members of the euro area. Having imbalances widened further much more than the countries in the euro area, many of them have come to appreciate the protection of the euro area membership, especially at times of financial and economic crises. Though, some NMS would like to speed up euro adoption, they now face conditions that may make it more difficult for them to satisfy the requirements of the nominal convergence criteria. Thus, in this article we try to capture the effects of economic and financial crises on the nominal convergence indicators in NMS

Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis

The importance of compliance with nominal convergence criteria is crucial for adopting the euro in New Member States (NMS).Although some of these countries have made remarkable efforts for complying with nominal criteria, structural and conjunctional macroeconomicimbalances have created big problems in this respect. Also, the global financial crisis revealed new challenges for the NSM which are not yetmembers of the euro area. Having imbalances widened further much more than the countries in the euro area, many of them have come to appreciatethe protection of the euro area membership, especially at times of financial and economic crises. Though, some NMS would like to speed up euroadoption, they now face conditions that may make it more difficult for them to satisfy the requirements of the nominal convergence criteria. Thus, inthis article we try to capture the effects of economic and financial crises on the nominal convergence indicators in NMS