Private external debt is a major worrying factor in Romania, Deputy Governor of the National Bank of Romania (BNR) Cristian Popa said on Friday while presenting the bank's quarterly inflation report.

According to the official, the short-term and long-term private external debts are making up 16 percent and 24-25 percent of the gross domestic product (GDP), respectively, while the total public debt, both external and internal, is just 15 percent of the GDP.

"This is in the end the business of the companies, but poor management of debt settlement could have public consequences," said Popa, adding that the private external debt is owed by nearly 2,000 companies, or 0.4 percent of the country's total.

Romania's short-term external debt, public and private, is standing at 21-22 billion euros (US$26.88-28.16 billion), making up 80 percent of the total international reserves. Popa blamed this debt mainly on the commercial banks, which he said took out loans from their parent banks outside Romania.

"It is quite unclear whether the amounts extended by the parent banks to the banks operating in Romania will be rolled over and to what extent," said Popa, adding that 2009 and perhaps even 2010 will be difficult years for the world's finances.

However, Popa said that Romania had no problems with the forex liquidity of the banks, thanks to the statutory forex reserves of 40 percent that are requested for external liabilities.

"When the banks have to pay back the loans to their parents, they will have to raise only 60 percent of the amounts, since 40 percent of the total amounts is kept with us," said the BNR official.