PM on Fitch warning: Reform programme moves on

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After Fitch Ratings had warned that the dissolution of the ruling coalition in Bucharest might disrupt the fiscal consolidation efforts, Romanian PM Florin Cîţu assured that the reform programme is moving on and that Romania has higher revenues in the budget and it can reduce the budget deficit.

“I discussed and I usually discuss with the rating agencies two, three times a year, I will have further talks now as well and I will explain them that the reform programme is moving on.

PNL is a responsible party, which isn’t made of spoiled children who take their toys and leave when a first issue arises, it is a party that is interested in governing Romania and in taking the reforms that we had assumed in the ruling programme.

We’ll prove to the rating agency that we have higher revenues in the budget, that we can reduce the budget deficit and we’re keeping up with the time frame to diminish the budget deficit agreed by the European Commission in spring,” PM Citu told a press conference.

On Wednesday Fitch Ratings warned that the dissolution of the ruling coalition in Romania might disrupt the fiscal consolidation efforts, which are crucial for changing the “negative” perspective that is currently associated with the “BBB minus” rating assigned to Romania.

“Fitch has repeatedly stated that the evolution of public finances is the main factor influencing Romania ‘s rating.

A positive rating action would require confidence that the authorities will implement credible fiscal plans that stabilize the government debt / GDP ratio in the medium term.

The lack of progress in implementing reforms, leading to faster-than-expected growth in public debt, could lead to a negative rating action,” the rating agency said.

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