PSD strategist expects Standard & Poor’s to downgrade Romania’s rating, blames the ‘banking lobby’

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Standard & Poor’s rating agency will downgrade Romania’s rating from stable to negative on Friday, Cristian Socol, PSD strategist has said.

Socol blames the “force of the banking/energy/communications lobby in Romania” and argues that the agency’s decision is the almost exclusive result of the affected interests of certain private sectors in Romania and of the arguments brought forward by the central bank.”

“It all comes at a cost from day one – increase in credit costs, higher budget expenditures, increase of budget deficit, fall in budget revenues, increase of interests, depreciation of the national currency exchange rate, possible fall of the stock exchange. Uncertainty will be on the rise, economy will go with the breaks on. The increase in welfare will be lower for Romanians,” Cristian Socol wrote on Friday on his Facebook page.

In turn, economy professor Bogdan Glavan argues the guilt is on the Government’s side, mainly for issuing Ordinance 114, report. He claims that, given the way the Government acts in the past several months, Standard & Poor’s should have downgraded Romania’s rating last year.

“I believe this downgrading of Romania’s rating should have been decided some time ago. What has happened lately are shocking events, which for certain will change their attitude,” Glavan said.

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