Moody's rating agency confirms once again the fact that the current Government has taken the necessary and correct measures to combat the socio-economic effects of the recent crises, as well as to ensure sustainable public finances, stated the Minister of Finance, Marcel Bolos.
"We see that the most respected rating agencies in the world reconfirm the economic stability of Romania. After Fitch and S&P, Moody's comes with a new confirmation of the fact that the current Government has taken the necessary and correct measures to combat the socio-economic effects of recent crises. Our commitment to good governance and economic reforms has led to this perspective from the rating agencies. This contributes to maintaining a favourable economic climate, reducing financing costs and promoting investment in our country. However, it is important to emphasize that, despite this positive news, we still have a lot of work to do. The Ministry of Finance's priorities are still reforms and measures that ensure fiscal-budgetary consolidation, in order to promote sustainable economic development and to secure investments from European funds," stated Minister Marcel Bolos, according to a press release sent to AGERPRES.
On November 3, 2023, Moody's rating agency reconfirmed the rating related to Romania's government debt at Baa3 for long-term debt and P-3 for short-term debt, as well as the stable outlook, Agerpres informs.
The confirmation of the ratings reflects, in the agency's opinion, Romania's robust medium-term growth prospects, supported by the funds allocated by the European Union and foreign direct investment flows.
In the opinion of the agency, the Romanian economy will register a growth of 2% in 2023, respectively 3.2% in 2024 and 3.5% in 2025 in line with the growth potential of the economy, the favourable prospects being supported by high levels of direct foreign investments and fund allocations from the European Union.
The agency also appreciates that the trend of rapid labour productivity growth will continue, as Romania will reduce the gap with more advanced European economies, and the reforms and investments from the PNRR [National Recovery and Resilience Plan - editor's note] and other instruments will begin to have an impact on the growth potential of the economy.
The agency also specifies that, although the level of public debt is at a comfortable level, there is a risk of gradual deterioration in the context of the materialization of high budget deficits and the increase of financing costs.
"The main factors that can contribute to the improvement of the country rating or the outlook are the significant and sustainable reduction of the fiscal deficit and the current account deficit. At the same time, the additional consolidation of the growth potential of the economy and the fiscal sustainability of the Government by adopting reforms in the PNRR framework can represent another positive factor," the press release states.
The Ministry of Finance reminds that, on September 8, 2023, the Fitch rating agency reconfirmed the rating related to Romania's government debt at BBB-/F3 for long-term and short-term debt in foreign currency, as well as the stable outlook.
Also, on October 13, 2023, the S&P rating agency reconfirmed Romania's government debt rating at BBB-/A3 for long-term and short-term foreign currency debt, as well as the stable outlook.
Comentează