Romania is awaiting a crucial decision from the S&P rating agency on Friday evening, and Finance Minister Alexandru Nazare says he is optimistic about maintaining the current rating.
„Tomorrow evening we are expecting a very important decision from the S&P rating agency. I am optimistic about this decision. I believe that, just as the other agencies have maintained our rating, S&P will do the same,” said Nazare, mentioning that he will travel to Luxembourg to attend the meeting of the Finance Ministers.
He emphasized that "three validations from the three rating agencies, 100 days after the government's inauguration, are a very important message."
Ambition: a better rating, lower interest rates
However, Nazare believes that Romania must go beyond simply maintaining the rating. "We should not settle for a class above junk. It is too little for Romania. The higher we raise the rating, the lower the interest rates will be, both for the state and for the private sector. It is the best indicator of the state's real performance," said Nazare.
He added that "after the first stability measures, results are already visible: the interest rate curve is starting to decline. If we maintain this stance, by the end of next year, we will return to the 2024 target, around 6%."
- Fitch reconfirms Romania's sovereign rating. The outlook is negative
- Moody's confirms Romania's rating at "Baa3", with a negative outlook
"We must get rid of explanations about the deficit"
The Finance Minister emphasized that Romania must be consistent to demonstrate that the fiscal consolidation process is real. "We will show that we keep our word. We need to get rid of these constant explanations: why is the deficit high? It hampers our negotiating capacity if we have to explain before seeking financing. Romania deserves to ask for things," said Nazare.
He added that the objective is to "return to the agreed deficit target by the end of 2026, so that we have all options on the table in the discussions at ECOFIN."
Moldova Highway transferred to grant funding
The Minister mentioned that the transfer of funding for the Moldova Highway from a loan to a grant was the result of direct negotiations conducted by the Ministry of Finance.
"This is very important because it guarantees the funding for the Moldova Highway. By August next year, the two sections will be funded. And through SAFE, A7 and A8, funding will continue," explained Nazare.
Thus, "Moldova already has clear sources of funding guaranteed through two programs until the completion of the PNRR and after the start of SAFE."
Support for farmers
Nazare conveyed to farmers that the Ministry of Finance will support the Ministry of Agriculture in developing new financing tools: "The Ministry of Finance, through its privileged relationship with international financial institutions, will be there to support the Ministry of Agriculture in finding new ways of financing, so that we can overcome the period in which farmers faced difficulties in accessing credit and in dialogue with the administration."