Romania’s economy was pushed up by the twin deficits encouraged by the governments over the past decades, but the country now pays high interest on its public debt and risks falling out from the investment-grade region, according to Ionut Dumitru – former head of the Fiscal Council and chief economist of Raiffeisen Bank.

“Romania deserves a better sovereign rating,” he argued, quoted by Ziarul Financiar.

Dumitru pointed out that although Romania’s GDP per capita calculated under constant price conditions (at PPP) exceeded those of Portugal or Hungary, the country’s sovereign rating lags behind.

The major rating agencies have recently affirmed their rating for Romania’s debt, keeping it at the lowest level in the investment-grade category. Hungary, however, is at the same level according to S&P (BBB-/stable) while indeed being rated higher by Moody’s (Baa2 versus Baa3 Romania).

iulian@romania-insider.com

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