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.
Romania's economy minister Mihai Fifor has been moved to head the defence ministry, after former minister Adrian Tutuianu resigned last week. Fifor was replaced by Gheorghe Simon, who took over the ... more
The Moscow-based International Investment Bank (IIB) will issue bonds to expand its existing loan portfolio and finance activities in Romania, the bank announced on September 4. The IIB has ... more
Nuclearelectrica, the operator of Romania's sole nuclear power plant, is reportedly poised to resume negotiations with China General Nuclear Power (CGN) on the construction of two new reactors. ... more