AmCham: Maintaining Romania in the Category of Countries Recommended for Investments Must Be a Priority of Economic Policy

The representatives of AmCham Romania consider that the keeping of Romania’s sovereign rating at “BBB- with a negative perspective” by Standard & Poor’s reflects the realities faced by the domestic economy after the shock generated by the COVID-19 pandemic.

AmCham Romania points out that it is important that the risks that Standard & Poor’s identified in the context of this assessment should be publicly explained and realized, and that public policies and priorities continue to reflect a strong commitment to maintaining balanced public finances. to generate investments with a multiplier effect in the economy and to capitalize to the maximum the opportunities offered by the financing packages from which Romania can benefit as an EU member state.

According to the American Chamber of Commerce in Romania, Standard & Poor’s decision was based on a number of factors, including low levels of public debt and external debt, Romania’s ability to borrow, the monetary policy of the National Bank of Romania and the programs announced by the Union. EU.

The agency’s experts drew attention to the persistence of macroeconomic imbalances in the coming quarters and the importance of implementing fiscal-budgetary consolidation measures after overcoming the COVID-19 crisis. Romania’s rating outlook remains negative, as the agency sees risks to its external balance of payments and budget balance over the next 18 months, if policy makers cannot stabilize and strengthen the fiscal stance following this pandemic-induced recession.

According to AmCham, it is fundamental that the economic policy decisions of the next period seek to maintain Romania in the category of countries recommended for investment, “which requires mapping structural reform processes through a correlated analysis of the recommendations of financial agencies, European institutions“.

Although the agency expects the negative economic and fiscal effects caused by the coronavirus pandemic (COVID-19) to lead to an increase in Romania’s net government debt to 43% of GDP in 2020, it estimates that significant consolidation measures will take place after the general elections in 2020.