The legislative amendments announced on Tuesday night by the government hinder the economy, according to an economic analyst

The legislative amendments which were announced by the government on Tuesday night have a cost in the Romanian economy, by devaluating the leu, increasing the costs for loans and slowing down the economic growth, the economic analyst Aurelian Dochia says.

‘We saw that today the leu dropped against the main foreign currency and as usual in the area of the exchange rate there is the quickest reaction. Depending on the evolution of the things, if the protests go on, then there might happen a certain concern on the part of the investors, of the financial markets. Future evolutions depend on very many factors’ the economic analyst Aurelian Dochia said.

He says that the foreign investors as well as the Romanian ones are influenced by this instability at different levels, legislative and political ones.’ The markets are influenced by these events. Not only the exchange rate, as well as the rates of interest can grow and the investors are very careful to such things. Even investors who buy Romanian bonds expect the rates of interest to grow. This means we will get more expensive loans. All this has a cost for the country and for the budget’ Dochia shows.

The analyst considers that all legislative changes produce uncertainty which creates restlessness among investors and evidently, they put a price on everything.

‘The costs for loans can grow, the costs for tradings and at the same time investments are reduced. It is possible that the economy suffers, by reducing the investments there will not be enough work places, we will not have a fast economic growth anymore. As there is uncertainty on the international level, this makes things even more complicated’ Aurelian Dochia said.

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