International Monetary Fund (IMF) approval is improving the risk rating on investing in Romanian sovereign debt and should woo back investors, according to French banking group BNP Parisbas, quoted by Bloomberg.

Last week, the IMF cleared the release of the next tranche of funds following an IMF mission to review Romania's stand by agreement. The IMF also released a statement declaring that the leu, Romania's currency, was slightly undervalued. “The IMF’s comments about the undervaluation of the leu were particularly helpful in restoring confidence in leu assets,” said BNP analyst Bartosz Pawlowski, quoted by Bloomberg.

According to the Bloomberg article, the IMF's approval has pepped up confidence in Romania, which has been severely hit in recent months by the ongoing political crisis. The leu has recorded numerous lows, which according to commentators were a reaction to the political situation in the country, where the president is still suspended, even after the presidential impeachment referendum.

Read the Bloomberg article.

Liam Lever, liam@romania-insider.com