Ilie Bolojan announces the maintenance of Romania’s rating by S&P and warns that the political deadlock may affect the country’s financing

Interim Prime Minister Ilie Bolojan said that Standard & Poor’s has maintained Romania’s sovereign rating despite the political crisis and government deadlock. The agency confirmed the BBB-/A-3 rating on Friday, an investment-grade rating, but kept its outlook negative.

Bolojan said the decision reflects the results achieved by the government, compliance with its commitments and the continuation of its fiscal policy. According to the interim prime minister, Romania managed to maintain an investment budget equivalent to 8.5% of GDP, while the absorption rate for PNRR funds exceeded 90% for grants and 95% for loans.

He said the budget deficit was reduced by nearly 27 billion lei compared with last year, while investments reached 97 billion lei in the first eight months, 25 billion lei above the level recorded in the same period last year. Personnel spending fell by nearly 9 billion lei over the past 14 months.

The interim prime minister warned, however, that a prolonged political deadlock could affect financiers’ confidence and divert Romania from its current trajectory. S&P notes that risks related to the consolidation of public finances and the reduction of external deficits remain high, against the backdrop of substantial financing needs and dependence on foreign investors. Bolojan called for the rapid formation of a stable government that would continue fiscal and budgetary measures.