The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis

Real GDP growth in 2020 could be negative, following the outbreak of COVID-19, and the adoption of economic measures by all European Union countries are key actions to mitigate these negative repercussions on the economy. In the exceptional circumstances created by the COVID-19 outbreak, companies o...

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Main Authors: NICOLETA GEORGETA PANAIT, COSTIN ALEXANDRU PANAIT
Format: Article
Language:English
Published: Nicolae Titulescu University 2020-06-01
Series:Global Economic Observer
Subjects:
Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_8_no_1/geo_2020_vol8_no1_art_008.pdf
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author NICOLETA GEORGETA PANAIT
COSTIN ALEXANDRU PANAIT
author_facet NICOLETA GEORGETA PANAIT
COSTIN ALEXANDRU PANAIT
author_sort NICOLETA GEORGETA PANAIT
collection DOAJ
description Real GDP growth in 2020 could be negative, following the outbreak of COVID-19, and the adoption of economic measures by all European Union countries are key actions to mitigate these negative repercussions on the economy. In the exceptional circumstances created by the COVID-19 outbreak, companies of all types may face a severe lack of liquidity. Also, insolvent or less solvent companies may face a sudden lack or even unavailability of liquidity. This is especially true for SMEs, which in the short and medium term can seriously affect the economic situation of many healthy businesses and the situation of their employees, with possible consequences even in the long term, endangering their survival. External debt is a solution to supplement the resources to support the economy, even contributing to raising living standards. External loans can also be used to finance the balance of external payments, ensuring economic growth of the country under the conditions of their efficient use in parallel with an increase in exports. Inefficient use of external borrowing can lead to a restriction on access to external market financing.
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spelling doaj-art-2bfacc7d616e45c68626b44d5259bbc42025-08-20T03:03:12ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502020-06-01815256The Evolution of Public Debt of Romania in the Context of the Covid-19 CrisisNICOLETA GEORGETA PANAIT0COSTIN ALEXANDRU PANAIT1PhD, Lecturer, Faculty of Economics and Business Administration „Nicolae Titulescu” University of Bucharest ROMANIA, nico.panait@gmail.comPh.D,, Faculty of Economics and Business Administration, University of Craiova ROMANIA, costin.panait@gmail.comReal GDP growth in 2020 could be negative, following the outbreak of COVID-19, and the adoption of economic measures by all European Union countries are key actions to mitigate these negative repercussions on the economy. In the exceptional circumstances created by the COVID-19 outbreak, companies of all types may face a severe lack of liquidity. Also, insolvent or less solvent companies may face a sudden lack or even unavailability of liquidity. This is especially true for SMEs, which in the short and medium term can seriously affect the economic situation of many healthy businesses and the situation of their employees, with possible consequences even in the long term, endangering their survival. External debt is a solution to supplement the resources to support the economy, even contributing to raising living standards. External loans can also be used to finance the balance of external payments, ensuring economic growth of the country under the conditions of their efficient use in parallel with an increase in exports. Inefficient use of external borrowing can lead to a restriction on access to external market financing.http://www.globeco.ro/wp-content/uploads/vol/split/vol_8_no_1/geo_2020_vol8_no1_art_008.pdfcovid 19public debtbudget deficiteconomic growthexternal debt
spellingShingle NICOLETA GEORGETA PANAIT
COSTIN ALEXANDRU PANAIT
The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
Global Economic Observer
covid 19
public debt
budget deficit
economic growth
external debt
title The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
title_full The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
title_fullStr The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
title_full_unstemmed The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
title_short The Evolution of Public Debt of Romania in the Context of the Covid-19 Crisis
title_sort evolution of public debt of romania in the context of the covid 19 crisis
topic covid 19
public debt
budget deficit
economic growth
external debt
url http://www.globeco.ro/wp-content/uploads/vol/split/vol_8_no_1/geo_2020_vol8_no1_art_008.pdf
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