The Fitch agency has given a clear signal that Romania needs to continue fiscal consolidation measures and restore budgetary balance in order to strengthen the country's fiscal credibility and that the rating will depend, to a large extent, on our ability to meet our commitments, says Finance Minister Tanczos Barna, Agerpres reports.
The finance minister's reaction came after Fitch Ratings on Friday has affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Negative Outlook, after the same agency had downgraded Romania's outlook from "stable" to "negative" at the end of last year.
"Only through consistency, firm and respected commitments can we regain the trust, both domestically and internationally. The credit rating agency Fitch Ratings has maintained Romania's classification in the category of recommended countries for investors. We have, once again, confirmation that Romania's EU membership, the steady growth of the economy and GDP, as well as the measures taken by the Government to reduce the budget deficit to 7%, in accordance with the plan approved by the European Commission, are trust factors for investors. At the same time, Fitch's assessment also lists the challenges for the coming period and gives a clear signal that we need to continue fiscal consolidation measures and the restoration of budgetary balance in order to strengthen the country's fiscal credibility. The country's rating will depend, to a large extent, on our ability to fulfill our commitments," the Finance Minister wrote on his Facebook page on Saturday.
He reaffirmed that the adopted budget, which envisages cuts in state spending, more efficient tax collection and strengthening economic growth through investment, must be firmly implemented.
"I am convinced that keeping the country's rating, after the negative outlook assigned in December, is a sufficiently strong and convincing signal to foreign markets that Romania can maintain its development trajectory and that we can take the necessary measures to provide security for investors," Tanczos Barna added.
In December last year, Fitch Ratings announced that it had downgraded Romania's outlook from stable to negative, the same announcement coming in January this year from S&P Global Ratings, as well.
Earlier this month, the finance minister said that Romania will not be downgraded to junk this year, given the economic indicators, the budget based on a 7% of GDP deficit and the government's commitment to this budget.
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