General government sector financial assets increase by 1.3 percentage points in Q3, 2021

The financial assets of the general government sector, expressed as a share of the gross domestic product, increased by 1.3 percentage points in Q3, 2021, reaching 26%, mainly due to the increases in deposits and cash, according to data published on Thursday by the National Bank of Romania (BNR), Agerpres reports.

According to the cited source, the financial commitments of the public administration increased by 3.3 percentage points at the end of last year's third quarter, compared to the similar period of 2020, representing 56.4% of GDP. The increase in this financial instrument is explained by the evolution of debt securities issues, launched both to finance the budget deficit and to refinance public debt, in lei and in foreign currency. Thus, long-term Eurobonds worth 3.5 billion euros were issued. On August 26, 2021, an issue of euro-denominated government securities was reopened by tender, this operation resulting in the increase of the amount initially announced, from 100 million euros to 176.25 million euros. In the third quarter of 2021, this debt instrument accounted for 41.6% of GDP, 2.5 percentage points more than in the same period last year.

The balance of committed appropriations increased by 0.9 percentage points in the analysed period, reaching 6.2% of GDP, and the items in the category of other amounts payable decreased by 0.1 percentage points, to 7.7% of GDP.

The general government sector needed financing worth 0.9% of GDP in the third quarter of 2021, compared to 1.9% of GDP in the third quarter of 2020.

The central government had a financing need of 0.9% of GDP (2.3% of GDP in Q3, 2020), and local administration had a financing capacity of 0.2% of GDP (0.02% of GDP in Q3, 2020).

The social security administrations had a financing need of 0.2% in Q3, 2021, while in Q3, 2020 they registered a financing capacity of 0.4% of GDP.