The financial rating agency Moody's Ratings confirmed on Friday Romania's rating at "Baa3" but changed the outlook associated with the rating to "negative" from "stable," according to a press release from Moody's.The decision to change the outlook to negative reflects the risk that, in the absence of additional fiscal consolidation measures, Romania's fiscal strength could significantly weaken in the coming years, the rating agency said.According to Moody's baseline scenario, Romania's fiscal deficit will remain at a high level in 2025, at 7.7% of GDP, and will improve only gradually thereafter, which will increase the government debt burden to 68.5% of GDP by 2028. In the absence of significant improvement in the fiscal outlook, there is a risk that Romania's credit profile could deteriorate significantly compared to that of other countries with a "Baa3" rating.According to the rating agency, the confirmation of the "Baa3" rating for Romania reflects the size and moderate growth potential of the economy. On the other hand, Romania's credit profile is constrained by its high vulnerability to a risk event, given its increased exposure to geopolitical risks due to its proximity to the war in Ukraine.Based on the policies announced so far by the government, Moody's forecasts that the fiscal deficit will decrease from the 8.7% of GDP level reached in 2024 but will remain high at 7.7% of GDP in 2025 and will improve only gradually thereafter. Combined with a downward revision of Romania's growth forecasts, this will quickly push up the government debt burden to 59.3% of GDP by the end of 2025, and to 62.7% of GDP by the end of 2026, up from 48.9% of GDP at the end of 2023.The rating agency specifies that the rating outlook could be returned to "stable" if the indicators related to the government debt burden and debt affordability deteriorate significantly less than the current estimates. However, most likely, this would require the adoption of additional fiscal consolidation measures and improvement in spending discipline.
A group of 40 Romanian pilgrims have left Israel on Tuesday, June 17, through Egypt, and most have already reached Romania. The group of Romanians is the third that managed to leave Israel. The other two have already left the territory of the State of Israel through the Eilat-Taba border crossing into the Arab Republic […]
RCBB Gruppe, a leading company in the field of construction and site management, announces the successful completion of two major projects in Bacău County: the new school building of the “Sfântul Iosif” Catholic National College in Bacău city and the Balneo-Tourism Complex in Sărata (opening photo). Both projects were delivered on time and in full […]
Lia Savonea, currently serving as a judge at the High Court in Romania, is the only candidate for the top seat in the institution in a selection process initiated by the Superior Council of Magistracy four months before the end of the term currently held by Alina Corbu. The timing, the absence of other candidates, […]
The Romanian Court of Auditors has completed an audit of national electricity transmission operator Transelectrica (BVB: TEL) for the period 2020–2022, uncovering irregularities in salary payments and delays in infrastructure projects, Ziarul Financiar reported on June 17. According to the audit...
Turkish construction and infrastructure company CCN has been awarded the contract to build the Regional Emergency Hospital in Iași, following a re-evaluation of bids by Romania’s National Agency for Health Infrastructure Development (ANDIS),
Romania is set to see prices rise in July as several governmental measures limiting costs will be removed, while taxes will be hiked. Energy and food will be among those becoming more expensive. The fiscal measures that the new Government is expected to announce will come into effect in two stages: some starting from July […]
