What IMF and rating agencies say?
International Monetary Fund still expects Romania to meet its commitments made by authorities under the stand-by agreement, regardless to what political party comes to power, said Tonny Lybek, IMF’s regional representative.
“We are running a financing program with Romania, instead of a certain government. We expect the country to meet its commitments regardless to who forms the Government”, said the regional representative of IMF for Romania and Bulgaria, when asked whether the collapse of the government puts the country at risk of missing targets under the agreement with the international institution.
However, this could determine rating agencies to downgrade Romania’s country ratings should the political instability build up to a point where the Executive is no longer capable of putting in place economic and fiscal consolidation programs, said Frank Gill, Standard&Poor’s analyst.
“If the current political situation escalates into a political blockage and Government is no longer capable of continuing the economic and fiscal consolidation programs or contain the growing public finance problems, rating agencies could act on the country’s ratings soon”, Frank Gill told NewsIn.
S&P and Fitch cut Romania’s ratings to “junk” status in fall last year, while Moody’s remained the sole service to keep it in the investment grade camp.
“We are running a financing program with Romania, instead of a certain government. We expect the country to meet its commitments regardless to who forms the Government”, said the regional representative of IMF for Romania and Bulgaria, when asked whether the collapse of the government puts the country at risk of missing targets under the agreement with the international institution.
However, this could determine rating agencies to downgrade Romania’s country ratings should the political instability build up to a point where the Executive is no longer capable of putting in place economic and fiscal consolidation programs, said Frank Gill, Standard&Poor’s analyst.
“If the current political situation escalates into a political blockage and Government is no longer capable of continuing the economic and fiscal consolidation programs or contain the growing public finance problems, rating agencies could act on the country’s ratings soon”, Frank Gill told NewsIn.
S&P and Fitch cut Romania’s ratings to “junk” status in fall last year, while Moody’s remained the sole service to keep it in the investment grade camp.