Raiffeisen Bank’s senior economist Ionut Dumitru said recently that political tumult “could put the stand-by arrangement with International Monetary Fund and European Commission at risk, which would have a negative impact over the approach to risk in Romania, and subsequently over exchange rates and real economy”, and would damage the country’s recovery prospects.
He outlined two scenarios: In the first case, interim ministers will be appointed instead of those nominated by the Social-Democratic Party which would function for only 45 days before a new government comes to power after being passed by the Parliament, or in the second case, a new government could be formed now and approved by the legislative body.
“It is unlikely for a new coalition to be formed, as this would mean long-range political instability. Let us remember that presidential elections are scheduled for November 22, 2009”, the economist stressed.
As a response to the political events, the local currency fell today against the single European currency by 1.2%.
The National Bank of Romania posted on Thursday an official currency exchange rate of 4.2495lei/euro, up by 1.22% compared to yesterday’s rates, after a political crisis erupted due to the removal of deputy PM from office and PSD’s exit from the ruling coalition.
In lipsa unui acord scris din partea InternetCorp, puteti prelua maxim 500 de caractere din acest articol daca precizati sursa si daca inserati vizibil linkul articolului Political instability could put the stand-by arrangement with IMF and EC at risk.