Economic-financial and Social Vulnerabilities of Romania in the Period 2013-2020

The paper provides an analysis of Romania's external debt vulnerabilities in the EU post-accession period based on existing indicators in this domain and taking into consideration structural challenges and critical values of debt thresholds.The main conclusion is that increasing external debt in Romania generates a series of vulnerabilities related to the risk of financial distress and low capacity to pay back the principal and debt service. The paper contains a set of proposals concerning the factors of improving debt sustainability in Romania taking into consideration the impact of trade balance, foreign direct investment, crediting of households and private companies with denomination in foreign currency and lei, contribution of labour force employment. The paper highlight the necessity of periodical reviewing the sustainability factors of external debt in accordance with the changes in the quality of policy-mix and administration institution and economic efficiency.