Management Operations of Public Debt
Management Operations of Public Debt

Summary/Abstract: The emergence of external debt is also the result of a vague view of the authorities, which have not taken timely and coherent measures to support the development of the internal capital market. Another cause that can cause the appearance of external debt is signaled by the balance of payments balance. When this balance is negative, it reflects the fact that that economy uses a larger amount than it produces. External loans are also used to finance consumption and additional investments. The current problems generated by the management of public debt in Romania have their origin in the change of the political regime in December 1989. The considerable efforts made by Romania during the communist regime to pay off all foreign debt to foreign countries made it virtually non-existent in early 1990. The beginning of the accumulation of the present public debt coincides with the change of the political regime.

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