Romania’s near-term economic growth will remain behind that of peers with same rating in other regions due to its exposure to Europe’s economy, while another constraint is its exposure to the global financial volatility due to the reliance on external financing to fund government spending and to private investment needs, Moody’s writes in an annual credit report.
Romania's Baa3/negative government bond rating incorporates the fiscal consolidation achieved over the last two years, but remains constrained by the economy's recent subdued growth performance and outlook. The negative outlook reflects the low GDP growth and the government's relatively high annual debt-refinancing needs that makes the country vulnerable to the uncertain global financial conditions.
Key issues considered by Moody’s regarding improving the country’s outlook to neutral or downgrading it are i. the fiscal consolidation process ii. the GDP growth and iii. the current trends in banks' asset quality and credit growth.
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
The European Commission has approved Romania’s planned €200mn capital increase for state-owned CEC Bank, allowing the country to proceed with strengthening the lender’s financial position, ... more
Addiko Bank, an Austrian financial institution specialising in the consumer and SME sector operating in Central and South-Eastern Europe (CSE), is preparing to launch operations in Romania with the ... more