Amid political risks, Romania has the highest borrowing rates in Europe

Romanian government bonds resumed their decline on Friday as the country continues to face political uncertainty, Bloomberg reports. The international publication noted that authorities are recounting ballots from the presidential election just two days before the nation votes again to elect the next government.    The yield on the 10-year national 10-year bond rose by 6 basis points to 7.34%; on Monday it reached 7.45%, the highest level since April last year, after the first round of the presidential election   Romania's dollar bonds are also among Friday's worst performers in emerging markets.   The investors will follow the results of the parliamentary elections on Sunday to see how quickly the new administration of the country at the Black Sea will tackle the issue of public finances worsening, the publication says.   Brokers are also blaming political uncertainty for the stock market's declines in Friday's opening trading session and analysts believe the volatility could last until after the elections. ‘Today clearly there was a spurt of orders for sale, not to say panic, but they had decreased by 3-4% actions that had no arguments for decrease. It was probably a repositioning of investors before the parliamentary elections, because compared to the situation of a week ago now any surprise is no longer a surprise and then the risk assumed on the market probably some wanted to reduce the exposure. And this has been working all week ‘ explained Alin Brendea, stock exchange analyst with Prime Transaction.He said that a clarification of the situation could be seen the moment we have certainties, and they will come after the electoral rounds, and the most important is the one of this week-end, as we will have the most important information for the economy.In his turn, Ovidiu-Lucian Isac, the general manager of Estinvest mentioned that investors hate the moments of uncertainty, when what comes next is not known. He explained that the market reacts at every piece of news, going up or down, and the volatility state lasts until the end of the second round of the presidential elections.Moreover, Antonio Oroian, broker with Goldring believes that the Stock Exchange has not faced so much danger since its reopening in 1995.‘There have  been shocks before, the 2008 crisis and the pandemics, but now the fact that we are faced with Romania’s total paradigm change is something that increases the risk very much. And that is why investors react  possibly emotionally as well, but many are those who want to mark the profit and put it aside to wait for the outcome’ said, in his turn, Antonio Oroian, broker with Goldring.He stated that a first stabilization of the Stock Exchange could be seen after the parliamentary elections taking place on Sunday.‘Starting with Monday we will see what the direction is, if we continue with the drops or we see a sligh coming back’ Antonio Oroian said.