Dynamics of Public Debt Service in the Context of Romania's Current Financial Crisis

AbstractIn the larger context of national economic policies, Romania has to ensure that both the level and the growth of public debt are sustainable, and that debt service can be provided under various circumstances while observing the objectives of cost and risk. It is also necessary to maintain public debt along a sustainable trend and to implement a credible strategy in order to reduce debt level in case it is excessive. In this context, the hereby paper attempts to analyze an important index of public debt, namel y public debt service and to further identify the dominant part held by the two components of government debt service - internal governmental public debt service and external governmental public debt service – which are crucial when managing public debt under the circumstances of the current financial crisis