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FinMin Citu: Fitch kept the country rating of Romania
The minister of public finances Florin Citu announced on Friday night that the rating agency Fitch kept the country rating for Romania.’ Moreover, the rating agency says that PNL does not increase taxes in 2021’, announces the minister of finances.
‘Victory!!! Fitch kept the country rating for Romania’ wrote on Friday night on Facebook Florin Citu.
He showed that the representatives of the rating agency appreciated the solutions for the reduction of the deficit which do not include taxes increases.‘Moreover, the rating agency says very clearly that PNL does not increase taxes in 2021.: ‘ The ruling centre-right PNL administration has pledged to focus on efficiency and targeted measures rather than tax increases to reduce the deficit’ wrote Citu.He mentioned that he would offer more details very soon.
Fitch announces that they confirmed the long term rating in foreign currency of Romania to ‘BBB’ with negative perspective. ‘The negative perspective for Romania reflects the weakening of the public finances due to procyclic policies over the last years and the impact of the pandemics of the coronavirus on the economic and fiscal performance. Although Fitch expects that the economy comes back in 2021, uncertainty in connection to the political evolutions, combined with the coming back of coronavirus infections both domestically and globally, continue to affect the economic and fiscal perspectives’ the Fitch agency shows.
The agency estimates that the deficit of the public administration will reach a historic maximum of 9.5% of GDP until the end of the year (from 6.% estimated in September and as compared to the budgetary projection revised of 8.6%) as expenses grow quickly to help to combat the corona pandemics. Similarly, they reflect the impact of pensions increase in September, which was anyway reduced from 40% to 14% and the acceleration of capital expenses.
Fitch relies its figures on the fact that president Iohannis and the government will manage to postpone the increase of pensions to 0% which is expected by the opposition, until after the parliamentary elections of December, according to Profit.ro.
The minister of public finances, Florin Citu announced on Wednesday night at the beginning of the government meeting that the rating agency Moody’s – the first of the agencies which finalised the report for Romania – kept the rating for out country, appreciating the decision of the government in Bucharest not to increase the value of the pension point by 40%.