Moody’s considers Romanian crisis

BUCHAREST (Reuters) – Moody’s Investors Service is «mildly» concerned about Thursday’s suspension of Romania’s president but the political crisis need not trigger a credit downgrade, the ratings agency said yesterday. Romania’s parliament has suspended popular President Traian Basescu on charges he abused his powers. Analysts have said the crisis could make it difficult for Romania, which joined the European Union this year, to meet requirements on structural reforms and prepare to absorb billions of euros in EU aid. «I would say that we are mildly concerned, certainly not concerned enough that it impacts the credit rating,» Moody’s Assistant Vice President Kenneth Orchard said in an interview with Reuters. He added there would be more cause for concern if political troubles lead to looser fiscal policy, increasing the risk of the economy overheating. «If this was to lead to a deterioration of the fiscal policy, and government spending increased dramatically… then we would be more concerned,» he said.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.